Among numerous payment methods available to buyers and sellers in international trade, operation by way of Letter of Credit / LC is the most widely accepted and practiced alternative. But why?
Why to choose Letter of Credit /LC as the payment vehicle?
What does `UCPDC` stand for?
How does Letter of Credit /LC function?
International trade calls for proper understanding and in depth knowledge of various technical aspects of Letter of Credit. To learn these theoretical basis and many other practical details regarding Exports & Imports through Letter of Credit / LC from experience of professional executive, Bdjobs.com invites you to the workshop on `Letter of Credits/ LC in Exports/Imports` operation.
Workshop topics to be covered:
International Trade: An Overview
Trade Payment Methods Commonly used in International Trade:
Cash in advance; Open account; On Consignment; Collection; Documentary Credit (also known as Letter of Credit)
Imports & Exports under Contract Procedure
Documentary Draft Transaction
URC (ICC Publication No.522 ): An Overview
UCPDC (ICC Publication No.600): An Overview
Introducing Letter of Credit:
Definition of Documentary Credit /other definitions included in UCPDC Article -2
Parties involved in Documentary Credit Operation:
Applicant; Beneficiary; L/C Issuing Bank; Advising Bank; Nominated Bank; Confirming Bank; Negotiating bank; Claiming Bank; Reimbursing Bank
Types of Letter of Credit:
Sight Payment Credit; Acceptance Credit; Deferred Payment Credit; Negotiation Credit; Unconfirmed Letter of Credit, Confirmed Letter of Credit; With Recourse Credit, Without Recourse Credit; Transferable Credit, Back to Back Letter of Credit; Standby Letter of Credit, Revolving Credit
Practical Exercise on L/C:
Familiarizing with Forms/Documents that are necessary for opening L/C (such as, L/C Application Form; LCA Form; IMP Form; Proforma Invoice (PI)/Indent; Insurance Cover Note/Policy and, any other forms/documents, if required, as per Import Policy Order (IPO) and their uses/ implications.
Practical Exercise on L/C (Continued