Trade Finance Workshop

Trade Finance Workshop

Trade Finance Workshop

Duration: 3 days

Target Group:

a) Bank Officers and Managers handling trade finance business

b) Executives from import/export firms involved in documentation and negotiation with banks

Workshop Objectives:

  • To update the participants with latest developments in international trade
  • Address issues and pit falls likely to be encountered in day-to-day business
  • Familiarize them with latest guidelines of International Chamber of Commerce (ICC) like UCPDC600, ISBP745, URC522, INCOTERMS 2010, etc.
  • Discuss country specific issues in financing imports/exports

Workshop Coverage:

Day 1

International Trade: dilemma of importers and exporters, role of banks in facilitating international trade, products and services offered

Bills for Collection and Uniform Rules: types of bills, their advantages and disadvantages, URC 522 – standardization of bill collection practices

Letters of Credit: issue of LCs and relevant rules under UCPDC600, role of banks (their rights and responsibilities), amendment to LCs

Special Types of LCs: deferred payment/installment, red clause/green clause, revolving, stand-by, restricted and unrestricted, transferable, back-to-back, etc.

Interactive Session: testing of learning by the participants and discussion of problem cases

Day 2

Documentation Under LCs: salient features and pit falls in bills of exchange, invoice, transport documents, certificate of origin, insurance, packing list, quality certificate, etc., general document requirements, e-documents

Presentation of Documents and Negotiation: examination of documents under LCs, standard of examination and ISBP745, dealing with discrepancies, provisions of UCPDC600 and ISBP745, treatment of declined documents, reimbursement procedure and URR725
– Discussion of specific problems and queries from the participants

INCOTERMS: importance of INCOTERMS for buyers/sellers and banks, standardization by ICC in 2010, frequently used INCOTERMS

Interactive Session: testing of learning by the participants and discussion of problem cases

Day 3

Transferable Credits and Merchanting Trade: main features, conditions for transfer, payment by issuing bank, uses of transferable credits, problems and issues

Back-to-Back Credits: main features and uses, independence of credits, risks in back-to-back credits, comparison between back-to-back and transferable credits

Merchanting Trade: how it works, its uses, back-to-back credits in merchanting trade, risks and other related issues

Risk Management in International Trade: different types of risks- operational risk, credit risk, exchange risk

Credit Risks: country risk including balance of payments and exchange control, bank risk, counter-party risk

Managing Exchange Rate Risk: impact of foreign exchange exposure on balance sheets of importers and exporters, natural hedge, exchange rate management policies of exporters and importers, instruments to manage exchange rate risk – forwards, futures, options, their advantages and risks, technical analysis

Credit Facilities: for importers and exporters, assessment and quantification

Topics mentioned above will be supported by exercises/case studies, besides sharing of practical experience. Trade finance related issues specific to the country will also be discussed

Trainers:

1. Mr. Hemant Pardikar

2. Prof. Satish Shinde