Course Objectives

• This Course Objective Hasn't Been Provided Yet

Target Audience

New bank employees

Module 1: Introduction to International Trade

  What is meant by international trade

  Trade cycle analysis

  Parties in international trade

  Understanding the customer need

  The concept of comparative advantage and absolute advantage.

  Why international trade differs from domestic trade.  Methods of entering an international market .

  Risk related to domestic trade and foreign trade 

Module 2: Documents used in international trade and the Incoterms 2020 rules

  Invoice

  Transport documents ( bill of lading , A.W.B , C.M.R AND multimodal transport documents )

  Marin Letter of Guarantee (how , when & who issue it ) banking risk related MLG .

  Insurance documents (difference between insurance policy and insurance certificate ) the right way to request insurance document insurance coverage . 

 Certificates of origins (benefits & contents ) 

 Inspections & analysis certificates

 Other documents

  Incoterms 2020 rules

 - INCOTERMS® 2020: main changes in compare with incoterms 2010

 - basic overview of the INCOTERMS® 2020 rules

 - seven Rules for any mode or modes of transport

 - four Rules for Sea and Inland Waterway Transport

 Module 3: Methods of settlements

  The concept of the risk ladder 

 The balance of risk between the seller and buyer 

 The difference between the four types of payment methods used in international trade

  Assessment of risks and distinguishing of which methods of payment are suitable for the seller and which are suitable for the buyer

Module 4: Advance Payment, Open account, and Documentary collections

  What is meant by an ‘Advance Payment’, risks involved to the seller and the buyer and how to mitigate them

  What is meant by an ‘Open account’, risks involved to the seller and the buyer and how to mitigate them?  

Documentary collection process

  What is meant by ‘Documentary collections’, risks involved to the seller and the buyer and how to mitigate them as well as types of Documentary collections

 - Clean collection

 - Direct collection

 - Documentary collection

 - Avalized draft

  The responsibilities of the parties to each type of payment tools

  How to secure payment tolls (adv. Payment , open A/C and collection ) 

Module 5: Documentary credits

  What a documentary credit is and its main features

  The roles , responsibilities and risks of the parties involved  How to read the issuance application . 

 How to read the letter of credit text .  What is ADVISE A CREDIT

  What is ‘open’ or ‘silent’ confirmation 

 The various types of documentary credit o advised a documentary credit (without confirmation ) o confirmed documentary credit . 

o Transferable documentary credit 

o Back-to-Back documentary credit 

o Revolving documentary credit 

o Red clause documentary credit 

o Green clause documentary credit

 o Advance payment documentary credit 

o Bridge documentary credit

  Go through ICC rules that govern documentary credits the important articles in the UCP 600 .

  Arrange for an amendment under documentary credit .  Standards for the examination of documents

  How to deal with discrepant presentation .

  Letter Of Indemnity

  Assignment of proceeds.

Module 6: Guarantees and standby letters of credit

  The role of guarantees in international trade

  Issuance, assignment, demands 

 the differences between conditional and unconditional guarantees .

  Advantages and risks associated with unconditional guarantees

  The various types of guarantee o Bid-bond letter of Guarantee 

o Performance Guarantee

 o Advance payment Guarantee 

o Warranty and retention guarantee

 o Payment guarantees 

o Credit replacement guarantees ( financial guarantee )  

Documents required under a guarantee

  non‑complying demand, waiver and notice

  Standby letters of credit Introduction to ISP98 . 

 unfair calling and options to insure this risk; and 

 credit considerations for issuing a guarantee or standby letter of credit

Participants will be informally assessed on their interaction during sessions and their  participation in group exercises.;

This course hasn't been scheduled yet, however you can request for In-House training