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IBS
One stop
shop for on
LETTERS OF
CREDIT (LC), UCP 600, ICC Rules, Seminars, workshops, training on the above. |
INTRODUCING One-day workshop on the new rules for guarantees-URDG, ICC Publication No. 758, intoruduced with effect from 1-July-2010 |
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Programmes and Courses offered Past programmes, lectures and workshops
INDEX OF PROGRAMMES Mastering payment risks, LCs and the UCP Understanding the UCP through case studies Managing risks in international trade and international payment Practical issues in LCs and the UCP Fundamentals of international banking Remittance, clean collections, documentary collections Overview of forex dealing and treasury operations; exchange rate mechanism Know Your Customer (KYC) and prevention of money laundering
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HOW WELL DO YOU KNOW YOUR UCP
1. B/Ls can be endorsed in favour of another and the beneficial ownership transferred. So also can an insurance policy document. Are these negotiable instruments? 2. Can an insurance policy be issued (i) “to order”, or (ii) “to bearer” – without naming anyone? 3. The scrutinising bank’s discrepancy notice under Article 16(c) states, “conflict of data between the commercial invoice and the packing list”. Is the notice valid or acceptable under the UCP? 4. What is the ‘Doctrine of strict compliance’? 5. Distinguish between LCs available by sight payment, deferred payment, acceptance and by negotiation. (UCP 600, Article 6.b) 6. The advising bank (a nominated bank, but has not confirmed the credit) while advising the credit conveys its “express agreement” (under Article 12.a) to honour or to negotiate a complying presentation. When complying documents are presented, it refuses to negotiate. Is the bank within its rights to do so? 7. Can a nominated bank negotiate complying documents without paying out funds to the beneficiary (UCP 600, Article 12, and Article 2: definition of 'negotiation')? 8. Compare and contrast: (i) mere examination of documents and forwarding (sub-article 12.c), vis-à-vis (ii) “agreeing to advance funds” (definition of ‘negotiation’, Article 2) but not doing so till the issuing bank has paid. 9. Statement: “Definition of ‘negotiation’ under Article 2 of UCP 600 is seriously flawed”. Do you agree?. 10. In its notice (UCP 600, Article 16.c), the examining bank lists out the discrepancies. After some time it returns the documents to the presenter. According to the UCP, is the bank correct in doing so? 11. Where in the UCP would you find the rules on ‘silent confirmation’? What is it? 12. Can a confirming bank impose its own terms as a pre-condition to confirming an LC? 13. An LC is not marked as ‘transferable’, but it names the bank authorised to transfer the credit. Can it be transferred? 14. An LC is issued as a ‘transferable’ credit and advised through bank X. The credit does not specifically name the bank authorised to transfer the credit. Can bank X transfer the credit? 15. In the case of a freely available/negotiable credit, which is the bank that can transfer the credit? 16. In the case of negotiation credit, if the LC does not call for it, is it necessary to include a draft with other documents? Would it be advisable to do so? 17. Where the nominated bank is the bank on which the draft is drawn (as stipulated by the credit), payment to the beneficiary by the nominated bank against complying documents is with or without recourse? 18. Who are defined as parties to a credit? Is the applicant a party to a credit? 19. What is a non-documentary condition? 20. Beneficiary presents a document that is not called for in the LC. As the nominated bank, a. Would you return it to the presenter without further comment? or b. Include it anyway in the presentation, but not examine it (since the LC does not mention or describe it)? or c. Though not called for in the credit, still examine it (since it is included) and forward it along with the rest? d. In case of conflict of data between that (additional) document and the (i) others or (ii) the LC, how would you react? 21. A credit requires an inspection certificate issued by the applicant and the signature to be verified by the issuing bank with the specimen on the file with them before making payment. Is this a non-documentary condition? Is this term acceptable to the beneficiary? 22. LC states that it is available in country A (beneficiary’s location), and that it expires in country B (issuing bank’s location). Where should the documents be presented by the beneficiary? 23. LC states that it is available in country B (issuing bank’s location), and that it expires in country A (beneficiary’s location). Where should the documents be presented by the beneficiary? 24. LC issued in Nairobi, Kenya in favour of an exporter in Beijing, China. LC confirmed by a bank in London. LC is available with any bank in China. To which bank should the beneficiary/exporter present his documents? 25. Confirming banks negotiate without recourse (sub-article 8.a.ii, UCP 600). When banks “honour” (defined in Article 2), consequent payment to the presenter is also without recourse. What is the difference between these two terms? 26. Documents lost in transit after leaving the beneficiary’s bank (nominated bank). Is the issuing bank obliged to pay (say, against presentation of a duplicate set) under its LC? Any obligation cast on the nominated bank? 27. Case study: · Goods’ description in LC: tubes, PO JB 70916. · Goods’ description in invoice: 123 Carbon Steel Pipes seamless and 300 Stainless Steel Pipes 304 Grade SMLS as per PO no. JB 70916. · As per the insurance certificate, the goods’ description is: 423 Carbon Steel Pipes as per PO JB 70916. Remaining documents are correct. Is the presentation complying? 28. Questions (on UCP 600, Article 10.c): (a) Will a presentation that complies with the credit but not to the not yet accepted amendment deemed to be notification of rejection by the beneficiary of the amendment under the following circumstances: (i) LC does not allow partial shipment? (ii) LC allows partial shipment? (b) What if the credit allows partial shipments and the beneficiary makes a further presentation that complies with the credit but to the not yet accepted amendment? 29. The letter of credit specifies submission of "clean on board" bill of lading. The bill of lading do not bear any notation of the word "clean"? Instead, it states, “packaging may not be sea-worthy”. Is the B/L discrepant? 30. On 1 June 2011 LC was issued stipulating a transport document, “FOB Heathrow, Incoterms”. Is the stipulation in order according to the ICC Publication no. 715?
IF YOU ARE NOT
CONFIDENT ABOUT THE ANSWERS,
Programmes are offered on:
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WORKSHOPS/TRAINING PROGRAMMES
on
(1) PROGRAMME: MASTERING PAYMENT RISKS, LETTERS OF CREDIT & UCP 600
Everything you ever wanted to know about Letters of Credit (LC), from the author of the books titled "An Introduction to Documentary Credits" and "All About UCP 600". This programme provides a total understanding of every aspect of LC operation, management of risks in international trade, international systems of trade settlement, the application and use of LCs in international trade, the rules of the game and the tricks of the trade, problem LCs, dangerous LCs, how to make the best use of LCs, the application of UCP 600, URR 725, reducing discrepancies in documents through the use of ISBP (ICC 681), and other essential information to help you gain competitive advantage in negotiations and international trade settlements.
CONTENT:
(2) PROGRAMME: UNDERSTANDING THE UCP THROUGH CASE STUDIES Methodology: Initiation of discussion (in brief), followed by case studies and analysis thereof. Actual case studies, taken from various archives, court cases and publications, are used to illustrate and highlight the complexities and intricate aspects of the individual articles of UCP 600. The special feature of every article is brought out through these case studies. Target group: Separate programmes structured for bankers, and for exporters/importers.
CONTENT:
[A general understanding of the ICC Rules would enhance the effectiveness of the programme. ]
(3) PROGRAMME: INCOTERMS 2010
CONTENT:
(4) PROGRAMME: UNIFORM RULES FOR DEMAND GUARANTEES, ICC PUBLICATION NO. 758
(5) Programme : ALL ABOUT UCP 600 Outlines the evolution of UCP 600, key issues that shaped the UCP, problem articles and the manner of their final disposal, analysis of the articles of UCP 600, and their comparison with UCP 500. The programme is essential for complete understanding of the articles of UCP 600 and their implications.
content:
(6) PROGRAMME: Bankers’ Guide to Letters of Credit
(7) PROGRAMME: FUNDAMENTALS OF INTERNATIONAL BANKING
COURSE CONTENT:
(8) Programme: FOR THE LEGAL PROFESSION: RULES OF THE INTERNATIONAL CHAMBER OF COMMERCE (ICC) RELATED TO INTERNATIONAL TRADE (with special focus on the UCP, urr, urc, isbp, incoterms)
This programme aims to share with the members of the legal profession engaged in disputes related to LCs and international trade, on the following:
The programme includes live case studies to help analyse the implications of the applicable ICC Rules, practices and procedures.
Organisations are invited to contact us for faculty support with courses and training programmes on any of the modules listed above.
Programmes could be customised to the requirement of an institution or target group.
Telephone: (+91 33) 23582976 / (+91) 9830402343 Mail to: BE-337, Sector 1, Salt Lake City, Calcutta 700064, India. E-mail to: mail@rnbose.net; rnbose@gmail.com
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With the students of MFS, Semester II of Goa University, Goa, after a lecture on 19 January 2009.
Workshop on Letters of Credit (LC) - organised by Cochin Chamber of Commerce, Cochin (23 May 2007)
Seminar on UCP 600 - by Cochin Chamber of Commerce, Cochin (18 April 2007)
Two-day workshop on Mastering LCs, by Indian Chamber of Commerce, Calcutta (4 & 5 Oct 2007)
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