“The Road to CDCSiccindonesia.org/pic/THE-ROAD-TO-CDCS-187.pdf · THE 1 The Road to CDCS This is a SilkRoad to become Subject Expert Matter in International Trade CDCS August –

1

The Road to CDCS

This is a Silk Road to become Subject Expert Matter in International Trade

CDCS

August – December 2014

“The Road to CDCS”

THE ROAD TO CDCS

2

The Road to CDCS

Bertitik tolak pada hal tersebut ICC Indonesia perlu memfasilitasinya melalui CDCS public training dengan pola

one stop public training on International Trade Rules & Applications melalui “The Road to CDCS”.

TUJUAN

Training ini merupakan persiapan dini (long terms preparation) untuk memfasilitasi peserta yang berminat untuk

memperoleh sertifikat CDCS, namun merasa belum memperoleh pengetahuan yang cukup untuk langsung

mengikuti Public Training on CDCS Tutorial yang diadakan secara reguler oleh ICC Indonesia menjelang

pelaksanaan ujian CDCS oleh IFS – UK.

Pembahasan materi berkisar pada:

Documentary credits - types, characteristics and uses, including standby credits Rules and trade terms, including ISBP 745, ISP 98, UCP 600, URR 725 and Incoterms 2010 Parties to documentary credit transactions and their roles and obligations Types and methods of payment / credit used in documentary credit transactions, including the concept

of autonomy l Types of transport, commercial and financial documents used in documentary credit transactions

Risk issues, including types of risk, control and mitigations Related products, including letters of indemnity, Air Way Releases and Steamship Guarantees Implications of breaching rules including money laundering and terrorist financing

Dibutuhkan waktu 18 kali pertemuan dalam mengikuti training ini, di mana beberapa pertemuan diadakan di hari

kerja dan di hari Sabtu mulai jam 09.00 – 16.00 WIB.

PENGANTAR

Secara reguler ICC Indonesia melaksanakan annualy publik

CDCS tutorial training guna mempersiapkan para peserta yang

umumnya telah memiliki pengetahuan dasar yang cukup baik

untuk mengikuti ujian CDCS di Jakarta bekerja sama dengan

Ifs United Kingdom. Animo untuk mengikuti ujian CDCS dari

tahun ke tahun semakin meningkat baik bagi yang telah

memiliki pengetahuan dasar maupun bagi peserta yang sama

sekali belum memiliki pengetahuan tentang International Trade

Rules dan aplikasinya serta bagi pendatang baru pada

International Trade Operations (Perbankan dan Korporasi).

TENTANG THE ROAD TO CDCS

Merupakan wadah bentukan ICC Indonesia yang dapat memberikan

solusi bagi para peserta yang ingin memperoleh bimbingan dalam rangka

mengikuti ujian untuk memperoleh CDCS sertifikasi bertaraf international

dengan pola end to end basic to advance study guide, dengan

fasilitator yang bersertifikasi internasional pula.

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The Road to CDCS

TENTANG CDCS

Sertifikasi “Certificate for Documentary Credit Specialists (CDCS)” adalah sertifikasi professional bagi para

praktisi perdagangan internasional yang telah diakui di seluruh dunia. Sertifikasi ini memungkinkan praktisi

documentary credit untuk menunjukkan pengetahuan dan pemahamannya mengenai masalah-masalah

kompleks yang terjadi di dalam praktek documentary credit.

International Chamber of Commerce (ICC) telah bekerja sama dengan Institute of Financial Services (IFS)

dalam mengembangkan CDCS di seluruh dunia. Selain itu, sertifikasi ini telah dirancang melalui proses

konsultasi dengan para pakar yang ahli di bidangnya yang turut serta secara terus-menerus untuk mengevaluasi

sertifikasi ini guna memastikan agar sertifikasi ini dapat mencerminkan praktek yang terjadi di lapangan saat ini

CDCS memperkuat dan mengembangkan pengetahuan dan pemahaman di bidang:

Documentary credits - tipe, karakteristik dan kegunaan, termasuk standby letter of credit

Peraturan dan persyaratan dalam perdagangan, termasuk ISBP 745, ISP 98, UCP 600, URR 725 dan

Incoterms 2010

Pihak-pihak di dalam transaksi documentary credit beserta peran dan kewajibannya

Tipe-tipe dan metode pembayaran/ kredit yang digunakan di dalam transaksi documentary credit,

termasuk konsepotonomi, jenis transportasi, dokumen komersial dan keuangan yang digunakan di

dalam transaksi documentary credit.

Resiko, termasuktipe-tipe resiko, control dan mitigasi

Produk terkait, termasuk surat ganti rugi, Air Way Releases dan Steamship Guarantess.

Implikasi dari pelanggaran peraturan termasuk pencucian uang dan pendanaan teroris.

KENAPA HARUS MENGIKUTI CDCS?

Gelar CDCS menunjukkan tingkat keahlian dalam documentary credit yang diakui di dunia. Meningkatkan pengetahuan dan mendalami materi dan masalah-masalah kompleks terkait documentary

credit sesuai ICC rules serta aplikasinya.

Memfasilitasi peningkatan kompetensi sumber daya manusia sesuai standard internasional

Memberi anda hak untuk menambahkan gelar “CDCS” dibelakang nama anda.

Membantu meningkatkan prospek karir dengan gelar “CDCS”.

METODOLOGI PELATIHAN

Pelatihan ini berbasis Experimential Learning Cycle yang memakai metode individual/ group exercise,

diskusi, studi kasus, simulasi real case, role play, games dan lecture.

Pre/Post Test untuk menggali kedalaman dan peningkatan pengetahuan peserta.

FASILITATOR

Para profesional yang kompeten dan berpengalaman dalam bidang Perdagangan Internasional

kalangan perbankan dan pengusaha yang tergabung di ICC Indonesia.

Memiliki latar belakang sebagai praktisi dan trainer di perbankan ternama.

CDCS Holder

Berpengalaman memberikan materi sejenis untuk berbagai institusi di Indonesia.

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The Road to CDCS

KOORDINATOR

Koordinator komite Kurikulum dan Tim Trainer: Budiutomo Kurniadi,CDCS dan Haryadi Sarpini, DC, Master -

Senior trainer dan technical advisor banking technique & practice di ICC Indonesia.

PRINSIP DAN PRAKTIK DALAM TRANSAKSI DOCUMENTARY CREDIT

Unit ini dirancang untuk memungkinkan spesialis documentary credit untuk memahami documentary credit,

produk, pesta, proses dan aturan yang mendukung transaksi kredit dokumenter. Serta kemampuan untuk

mengelola transaksi kredit dokumenter dan mengidentifikasi penyimpangan, dengan menerapkan pengetahuan

tentang proses, aturan ICC dan persyaratan perdagangan.

POST QUALIFICATION Setelah mengikuti Training melalui pola The Road to CDCS ini, peserta dapat menentukan salah satu dari dua

pilihan, yakni:

1. Mengikuti tutorial lanjutan atau, 2. langsung mengikuti ujian CDCS.

PESERTA

Perbankan dan Korporasi

Pendatang baru di kalangan International Trade, Export Import, Product Management, Marketing &

Operation, Legal, dll

Manajemendan staff divisi:

International Trade, Export Import, Product Management, Front liner Bank, Marketing & Operation,

Legal, dll.

Exporter/importer

Lawyers, dll

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The Road to CDCS

SILABUS

Modul

Durasi

Tanggal

Investasi

Materi

Modul

1 1 Hari Rabu, 27 Agus ‟14

Rp. 2.000.000 Sales contract & Incoterms 2010

Modul

2 1 Hari Kamis, 28 Agus „14

Rp. 2.000.000 Method of Payment & Overview of

Documentary Credit

Modul

3 2 Hari

Rabu, 3 Sept „14

Kamis, 4 Sept „14

Rp. 4.000.000 Documentary Credit: Types, Uses and

Characteristics

Modul

4 1 Hari Kamis, 11 Sept „14

Rp. 2.000.000 Issuing & advising the Documentary Credit

Modul

5 2 Hari

Sabtu, 13 Sept „14

Sabtu, 20 Sept „14

Rp. 4.000.000 ISBP 745

Modul

6 2 Hari

Sabtu, 11 Okt „14

Sabtu, 18 Okt „14

Rp. 4.000.000 Preparation & Examination of Transport

Documents (include ICC Rules)

Modul

7 1 Hari Sabtu, 1 Nov „14

Rp. 2.000.000 Other Documents

Modul


Rp. 2.000.000 Settlement & Bank-to-bank

reimbursements under Doc. Credit

Modul


Rp. 2.000.000 Documentary Collection under URC 522 &

e-UCP

Modul

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2 Hari Sabtu, 22 Nov „14 Sabtu, 29 Nov „14

Rp. 4.000.000 Standby Letter of Credit (ISP98) &

Demand Guarantee (URDG)

Modul

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1 Hari Sabtu, 13 Dec „14 Rp. 2.000.000 Other products relating to a documentary

credit, Money laundering, terrorist

financing and Islamic Trade Finance

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The Road to CDCS

MODUL 1 : SALES CONTRACT & INCOTERMS 2010

TIME DURATION TOPIC SYLLABUS

09.00 – 16.00 (Include coffee break & Lunch break)

1 Day

Sales contract & Incoterms 2010

a. SALES CONTRACT

The Definition Of Contract

Key Consideration in Commercial Contracts

Some fundamental Principles of Contract Law

Structure of Contract Comparison; Premise(s) or Recital(s); Terms and Conditions of the contract Standard Clauses of the Contract Testimonial Clause (Closing of the Contract); Name and Signature of the parties; Name and Signature of the witnesses. Modification and/or Amendments and/or Waiver

Key Element of Successful Contract negotiation techniques

Common Pitfalls to avoid in Drafting Business and Commercial Contracts

b. INCOTERMS® 2010

Introduction & history of INCOTERMS

Structure of Incoterms 2000 & 2010

Overview of the changes of INCOTERMS 2010

New INCOTERMS (consolidation of D terms)

DAT (delivered At Terminal) & DAP (Delivered At Place) more detail: Terminal handling charges Electronic communications Security Insurance Domestic and international In summary on DAT & DAP

How to use INCOTERMS & Real life incidents

Key aspects of Incoterms 2010

c. CASE STUDY d. POST TEST

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The Road to CDCS

MODUL 2 : METHOD OF PAYMENT & OVERVIEW OF DOCUMENTARY CREDIT

TIME DURATION TOPIC

SYLLABUS


1 Day

Method of Payment Overview of Documentary Credit

a. INTRODUCTION TO PAYMENT TERMS

Objectivity

Overview of UCP600 & URC522

Why International Trade?

Hazards in International Trade

How Banks Can Help b. TRADE PAYMENT METHODS

Cash in Advance Advantages and Risks of Cash in Advance Method

Open Account Advantages and Risks of the Open Account Method

On Consignment Advantages and Risks of the On Consignment

Method

Draft or Documentary Collection The Documentary Collection Process for a Sight

Draft The Documentary Collection Process for a Time

Draft Advantages and Risks of Draft or Documentary

Collection Method

Documentary Credit Choosing a DC as the method of payment Benefits for the beneficiary Benefits for the applicant Autonomy of the DC Roles, responsibilities, risks involved Risk faced by an applicant Risk faced by a beneficiary Roles, responsibilities, risks involve

c. COMPARISON OF VARIOUS METHODS OF PAYMENT INCLUDING RULES AND MEDIA (SWIFT/TSU, UCP, URC, URBPO, URF) d. DOCUMENTARY CREDIT

Introduction on Documentary Credit

What is a Documentary credit? Why is it used?

Brief history

How does a Documentary credit operate?

Basic structure of Documentary Credit

Role of the banks

Parties involved in Documentary Credit

Documentary Credit Terms and Conditions

Types of Documentary credit

Documentary Requirements

The advantages and risks of the Documentary credit method

Any idea on UCP? e. CASE STUDY f. POST TEST

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The Road to CDCS

MODUL 3 : DOCUMENTARY CREDIT: TYPES, USES & CHARACTERISTICS



2 Days

Documentary Credit: Types, Uses and Characteristics

a. PARTIES ON DOCUMENTARY CREDIT

Introduction and learning objectives

Roles and responsibilities – applicant‟s side

Roles and responsibilities – beneficiary‟s side

Relationship of parties in respect of payment of conforming documents

Roles and responsibilities in reimbursement

Roles and responsibilities illustrated

b. TYPES OF PAYMENT

Settlement methods –Sight payment

Settlement methods –Deferred payment

Settlement methods –By Acceptance

Settlement methods –Negotiation c. MAIN TYPES OF DOCUMENTARY CREDIT;

Evaluate the main characteristics of different types of documentary credit;

b. CHARACTERISTICS OF DOCUMENTARY CREDIT:

Revocable documentary credit (1)

Risk under Revocable documentary credit

Irrevocable documentary credit & confirmed

Transferable documentary credit

Transferable documentary credit -risk & costs

Transferable documentary credit –procedures

Transferable documentary credit -managing risks

Back-to-back documentary credit

Back-to-back documentary credit -key elements

Back-to-back documentary credit –procedures

Back-to-back documentary credit -managing risks c. COMPARING TRANSFERABLE VS. BACK-TO-BACK d. CLEAN DOCUMENTARY CREDIT

e. ADVANCE PAYMENT DOCUMENTARY CREDIT–READ CLAUSE

Managing Risk f. REVOLVING DOCUMENTARY CREDIT

Installment drawings or shipments

Type of revolvement

Whether the revolvementis cumulative or not

Managing Risks g. EVERGREEN DOCUMENTARY CREDIT

Sample wording to ensure the „evergreen‟ nature of a standby letter of credit

Managing risks h. DOCUMENTARY CREDIT –UNDER AID AGREEMENTS i. PRELIMINARY ADVICES OF DOCUMENTARY CREDIT

Preliminary advices and inoperative k. ASSIGNMENT OF PROCEEDS l. CASE STUDY m. POST TEST

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The Road to CDCS

MODUL 4 : ISSUING & ADVISING THE DOCUMENTARY CREDIT



1 Day

Issuing the Documentary Credit

a. INTRODUCTION AND LEARNING OBJECTIVE

Compliance with the policies of the bank

Compliance with, and the correctness of, the instructions of the applicant

Discussions with the applicant

b. ASSOCIATED ACTIVITIES IN RESPECT OF ISSUANCE

Receipt of applicant request

Selection of an advising bank

Workability of a documentary credit

c. ISSUANCE OF A DOCUMENTARY CREDIT

Preparation of Documentary Credit

Characteristics of a documentary credit as issued

Obligation of an issuing bank

Transmission of the documentary credit by SWIFT/telex/mail/courier

d. AMENDMENTS

Obligations of an issuing Bank

Advising A Documentary Credit

e. ADVISING A DOCUMENTARY CREDIT

f. RELATIONSHIP BETWEEN BENEFICIARY AND ADVISING BANK OR SECOND ADVISING BANK

Communication applicant – beneficiary following advice of the documentary credit

g. RELATIONSHIP BETWEEN BENEFICIARY AND NOMINATED/CONFIRMING BANK

h. RELATIONSHIP BETWEEN BENEFICIARY AND TRANSFERRING BANK

i. RELATIONSHIP BETWEEN BENEFICIARY AND ISSUING

BANK

j. RISK TO THE BENEFICIARY

Failure to comply with documentary credit conditions

Failure of, or delays in payment from, the issuing bank

Credit issued by a party other than a bank

k. CASE STUDY

l. POST TEST

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The Road to CDCS

MODUL 5 : ISBP 745



2 Days

ISBP 745

a. ICC OPINIONS:

Their effect on ISBP (a look at more recent ICC opinions)

How they shape ISBP b. ISBP, PUBLICATION NO. 745 c. WHAT IS ISBP, WHY THE NEED FOR A REVISION, AND

WHO IS IT INTENDED FOR? d. RELATIONSHIP OF ISBP TO UCP e. ENFORCEMENT OF ISBP PRACTICES f. OVERVIEW OF CHANGES TO THE GENERAL PRINCIPLES :

Use of Virgules and Commas

Documents evidencing sending of documents and copy transport documents

Copies of transport documents, which are subject to articles 19-25

Three new expressions defined

Two existing expressions expanded

Language of documents

Mathematical calculations and corrections

Electronic authentication

More than one document and non-documentary conditions

Original and copy documents

g. TRANSPORT DOCUMENTS

Multimodal, Bill of Lading, Non-Negotiable Sea Waybill & Charter Party Bill of Lading – common changes

Air Transport Document

Road, Rail or Inland Waterway Transport Document

OTHER DOCUMENTS

Drafts

Invoices

Insurance Document

Certificate of Origin

Packing List and Weight List

Beneficiary‟s Certificate

Analysis, Inspection, Health, Phytosanitary, Quantity, Quality and other Certificates

h. CASE STUDY i. POST TEST

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The Road to CDCS

MODUL 6 : PREPARATION & EXAMINATION OF TRANSPORT DOCUMENTS



2 Day

Preparation & Examination Of Transport Documents

a. INTRODUCTION

b. PREPARATION OF TRANSPORT DOCUMENTS

Understanding the transport document

Creating the required transport document

c. TYPES OF TRANSPORT DOCUMENT:

Multimodal transport document: Title, negotiability and transfer ; Control over goods; Delivery of goods

Bill of lading: Title, negotiability and transfer; Control over goods; Delivery of goods

Non-negotiable sea waybill: Title, negotiability and transfer; Control over goods; Delivery of goods

Charter party bill of lading

Air transport documents: Title, negotiability and transfer; Control over goods; Delivery of goods

Road, rail or inland waterway transport documents: Title, negotiability and transfer; Control of goods; Delivery of goods

Courier receipt, post receipt or certificate of posting: Title, negotiability and transfer; Control of goods; Delivery of goods d. COMMON CHARACTERISTICS:

Consignor and consignee

Notify party

Corrections and alterations to data content

Signing requirements

Shipping marks

e. GOODS COVERED BY MORE THAN ONE TRANSPORT DOCUMENTS

f. CASE STUDY g. POST TEST

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The Road to CDCS

……….. continued MODUL 6 : PREPARATION & EXAMINATION OF TRANSPORT DOCUMENTS


Examination of Documents

a. INTRODUCTION b. c. PRELIMINARY TASKS:

Recording

The schedule or letter enclosing documents

The availability of the documentary credit

Settlement or payment instructions

Discrepancies noted by the presenter

Documentary credit workability

Characteristics of the documentary credit and payment terms

Completion of the bank‟s document examination record

d. EXAMINATIONS OF DOCUMENTS e. f. EXAMINATION OF DOCUMENTS WITH REFERENCE TO

THE DOCUMENTARY CREDIT:

Form of credit;

Documentary credit number;

Date of issue;

Applicable rules;

Date and place of expiry;

Applicant;

Beneficiary;

Credit amount;

Available with and by;

Drafts;

Partial shipments;

Transhipment;

Place of taking charge / ports / airports / place of delivery;

Latest date of shipment;

Description of goods;

Documents required;

Additional conditions;

Period for presentation;

Confirmation instructions;

Reimbursing bank;

Charges.

g. EXAMINATION OF DOCUMENTS WITH REFERENCE TO ANY AMENDMENTS

h. i. EXAMINATION OF DOCUMENTS WITH REFERENCE TO

UCP 600:

j. STANDARD FOR EXAMINATION OF DOCUMENTS: „on their face‟, international standard banking practice, virgules &

commas, certificates, copies of trans.doc., corrections, dates, box, others, expression, issuer , language, mathematical calculations, multiple pages, non-documentary, originals & copies, shipping marks, signatures, title of docs, k. DOCUMENTS NOT TO BE IN CONFLICT WITH ONE

ANOTHER l. DOCUMENTS NOT STIPULATED BY THE DOCUMENTARY

CREDIT

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The Road to CDCS



Examination of Documents

m. NON DOCUMENTARY CONDITIONS

n. DETERMINATION OF COMPLIANCE ON DOCUMENTS

ALONE

o. DISCLAIMER ON EFFECTIVENESS OF DOCUMENTS

p. DETERMINATION OF ACCEPTABILITY RE ISSUER, ORIGINALITY AND AUTHENTICATION OF DOCUMENTS

q. EXAMINATION OF DOCUMENTS WITH REFERENCE TO ONE ANOTHER

r. EXAMINATION CHECK LIST –FOR THE BANK RECEIVES THE DOCS

s. EXAMINATION CHECK LIST –FOR THE BANK AND BENEFICIARY

t. EXAMINATION CHECK LIST –OTHER DOCUMENTS

u. AN EXAMINATION LOGIC s. AN ICC OVERVIEW –EXAMINATION OF DOCUMENTS, WAIVER OF DISCREPANCIES AND NOTICE UNDER UCP:

Examine documents

Documents comply or do not comply

Decide to refuse or seek a waiver

(Depending on receipt of waiver) take up or refuse and give notice

If waiver received, determine whether or not to accept applicant waiver

Processing discrepant documents in the role of the issuing bank:

Receiving prior requests from nominated banks for authority to honor or negotiate

Approaching the applicant

Giving notice of refusal

Disposal of documents to applicants

t. HANDLING OF PENDING DISHONORED DOCUMENTS

u. CASE STUDY

v POST TEST

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The Road to CDCS



Analysis of ICC rules

a. UCP 600:

UCP 600, article 14: Standard for examination of documents

UCP 600, article 18: Commercial invoice

UCP 600, article 19:

Transport document covering at least…..: 1. „. . . two different modes of transport‟ 2. „. . . however named‟ 3. „indicate the name of the carrier and be signed‟ 4. „. . . dispatched, taken in charge or shipped on board

at the place stated in the credit‟ 5. „. . . date of shipment‟ 6. „. . . place of dispatch, taking in charge or shipment

and the place of final destination‟ 7. „. . . full set‟ 8. „. . . terms and conditions of carriage‟ 9. „. . . charter party‟ 10. „. . . transhipment‟

The detailed UCP provisions are set out in UCP 600, article 20: Bill of lading:

1. „. . . however named‟ 2. „. . . indicate the name of the carrier and be

signed‟ 3. „. . . shipped on board‟ 4. „. . . date of shipment‟ 5. „. . . does not indicate the port of loading stated

in the credit as the port of loading‟ 6. „. . . full set‟ 7. „. . . transhipment‟

UCP 600, article 21: Non-negotiable sea waybill: The provisions of article 21 are the same substantive requirements as those for bills of lading under article 20.

UCP 600, article 22: Charter party bill of lading: 1. „. . . indication‟ 2. „. . . signed‟ 3. „. . . shipped on board‟ and 3b „. . . date of shipment‟ 4. „ . . . port of discharge‟ 5. „. . . full set‟ 6. „. . . charter party contracts‟

UCP 600, article 23: Air Transport Document

UCP 600, article 24: Road, Rail or Inland Waterway

UCP 600, article 25: Courier Receipt, Post Receipt or Certificate of Posting

b. CASE STUDY c. POST TEST

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The Road to CDCS

MODUL 7 : OTHER DOCUMENTS



1 Day

Other Documents Insurance Documents

Financial, Commercial And other Official Document

a. FINANCIAL DOCUMENTS b. COMMERCIAL DOCUMENTS c. OFFICIAL DOCUMENTS d. MODE OF PRESENTATION / TRANSMISSION e. PRESENTATION AND UCP 600 f. DISCREPANT DOCUMENTS:

Role of a nominated bank;

Role of a nominated bank –Giving notice of refusal;

Role of a nominated bank –Discussion with beneficiary;

Role of a nominated bank –Correction by beneficiary;

Role of a nominated bank –Obtaining the issuing bank‟s authority;

Role of a nominated bank –Receiving instruction from beneficiary to dispatch documents;

Role of a nominated bank –Dispatch of documents;

Role of a nominated bank –Handling of documents pending settlement; Settlement obligations of confirming and nominated banks

g. SHIPMENT OF GOODS ANDPREPARATION OF DOCUMENTS

h. INSURANCE REQUIREMENTS:

Insurance policies, insurance certificates and cover notes

Insurance terms as commonly seen

Average: General average ; Particular average

Franchise or an excess (deductible)

Shipment on deck

Claims payable [name of place]

Warehouse-to-warehouse clause

General requirements

Common discrepancies that arise upon examination of an insurance document

i. FINANCIAL DOCUMENTS:

Bill of Exchange: Definition, Documentary credit requirement; Corrections and alterations; Calculation of maturity; Payment at maturity

Promissory Note

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The Road to CDCS

…….. continued MODUL 7 : OTHER DOCUMENTS



1 Day

j. COMMERCIAL DOCUMENTS:

Commercial invoice;

Certified invoice,

Consular invoice,

Legalized invoice,

Certificate of analysis;

Certificate of weight,

Inspection certificate,

Packing list,

Weight list,

Certificate of origin,

Export license,

Health certificate k. DOCUMENTS FOR OFFICIAL PURPOSES l. UCP 600 AND FINANCIAL DOCUMENTS m. UCP 600 AND COMMERCIAL INVOICES n. UCP 600 AND OTHER COMMERCIAL DOCUMENTS o. COMMON DISCREPANCIES:

Discrepancies on financial documents

Discrepancies on commercial documents

Discrepancies on documents required for official purposes

p. CASE STUDY q. POST TEST

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The Road to CDCS

MODUL 8 : SETTLEMENT & BANK TO BANK REIMBURSEMENTS

UNDER DOC. CREDIT



1 Day

Settlement

Bank-to-bank reimbursements under Doc. Credit (based on URR 725 and CUP 600)

a. INTRODUCTION b. COMPLYING DOCUMENTS c. NON-COMPLYING DOCUMENTS d. SETTLEMENT TERMS:

By sight payment

By deferred payment

By acceptance

By negotiation e. IMPORTANT CHECKING CONSIDERATIONS:

A mix of settlement terms

Assignment of proceeds

Special documentary credits –Revocable

Special documentary credits –Refinancing

Advance payment documentary credit

Transferable documentary credit

Reimbursement by telegraphic transfer

Collection of charges f. PAYMENT, NEGOTIATION, DISCOUNT AND PURCHASE:

Payment / negotiation with recourse

Payment / negotiation without recourse g. PROVISION OF SHORT-TERM FINANCE:

Negotiation (advancing)

Discount and purchase h. TRANSMISSION OF PROCEEDS:

Claims by a named nominated bank

Claims by a confirming bank

Claims by any bank in a freely available documentary credit

Claims received by an issuing bank

The method of transmitting claims, effecting payment and advising beneficiaries or nominated banks

The method of transmitting claims, effecting payment and advising beneficiaries or nominated banks -MT 754

The method of transmitting claims, effecting payment and advising beneficiaries or nominated banks -MT 756

i. STEP 1 : ISSUANCE 1.1

Issuance 1.2 Issuance 1.3 j. STEP 2 : AMENDMENT 2.1

Amendment 2.2 Amendment 2.3 Amendment 2.4 Amendment 2.5 k. STEP 3 : CLAIMING 3.1

Claiming 3.2 Claiming 3.3

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The Road to CDCS

…….. continued MODUL 8 : SETTLEMENT & BANK TO BANK

REIMBURSEMENTS UNDER DOC. CREDIT


l. STEP 4: CANCELLATION WHILE DOCUMENTARY CREDIT

STILL VALID –4.1

Cancellation while documentary credit still valid –4.2 Cancellation while documentary credit still valid –4.3 Cancellation while documentary credit still valid –4.4 Cancellation while documentary credit still valid –4.5 m. STEP 5: CANCELLATION AFTER EXPIRY OF

DOCUMENTARY CREDIT n. PROBLEMS o. TRANSMISSION OF PROCEEDS p. DISCIPLINES PROMPTED BY SWIFT MESSAGE TYPES q. CASE STUDY r. POST TEST

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The Road to CDCS

MODUL 9 : DOCUMENTARY COLLECTION UNDER URC 522 &

e-UCP



1 Day

Documentary Collection under on URC 522

e-UCP supplement to UCP 600

a. UNIFORM RULES FOR COLLECTION (URC) 522

GENERAL PROVISION AND DEFINITIONS

Transaction by Telegraphic Transfer (T/T)

Parties Involved in Collection

Documents vs Goods/ Performance

Disclaimer on delay and loss intransit and translation

Payment in foreign currency

Partial Payment

ADVICES

FORMAT TRANSACTIONS ON D/A & D/P b. e UCP

Key features of eUCP

Supplement for Electronical Presentation: Article e1 Scope of the eUCP Article e2 Relationship of the eUCP to theUCP Article e3 Definition Article e4 Format Article e5 Presentation Article e6 Examination Article e7 Notice of Refusal Article e8 Originals and Copies Article e9 Date of Issuance Article e10 Transport Article e11 Corruption of an Electronic Record After

Presentation Article e12 Additional Disclaimer of Liability for

Presentation of Electronic Records under eUCP

c. CASE STUDY d. POST TEST

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The Road to CDCS

MODUL 10 : STANDBY LETTER OF CREDIT (ISP98) & DEMAND GUARANTEE (URDG)



2 Days

Standby Letter of Credit, Under ISP98

a. INTRODUCTION TO SBLC

Objectivity

Overview of ucp600 & ISP 98

Why ISP not UCP?

Flow of SBLC

b. TYPES OF SBLC:

performance SBLC

advance payment SBLC

bid or tender bond SBLC

counter SBLC

financial SBLC

Insurance SBLC

Commercial SBLC

direct pay SBLC c. CRITICAL ARTICLE ON ISP 98: (1) GENERAL PROVISION:

1.01 Scope and Application

1.02 Relationship to Law and other Rules

1.03 Interpretative Principles

1.04 Effect of the Rules

1.05 Exclusion of Matters Related to Due Issuance and Fraudulent or Abusive Drawing

1.08 Limits of Responsibilities

1.10 Redundant or Otherwise Undesirable Terms (2) OBLIGATIONS:

2.01 Undertaking to Honour by Issuer and Any Confirmer to Beneficiary

2.02 Obligation of different branches, agencies, or other offices

2.04 Nomination

2.06 When an amendment is Authorized and Binding (3) PRESENTATION:

3.09 Extend or Pay

3.14 Closure on a business day and authorization of another reasonable place for presentation

(4) EXAMINATION:

4.01:Examinationforcompliance

4.02: Non-examination of extraneous documents

4.03:Examinationforinconsistency

4.05: Issuer of documents

4.06: Date of documents

4.07: Required signature on a document

4.11: Non-documentary terms or conditions

4.12: Formality of statements in documents

4.16: Demand for payment

4.17: Statement of default or other drawing event

4.18: Negotiable documents

4.19:Legalorjudicialdocuments

4.20: Other documents

4.21: Request to issue separate undertaking (5) NOTICE, PRECLUSION, AND DISPOSITITION OF DOCUMENTS:

5.01: Timely notice of dishonor

5.09: Applicant notice of objection

21

The Road to CDCS

…….. continued MODUL 10 : STANDBY LETTER OF CREDIT (ISP98) & DEMAND GUARANTEE (URDG)


Standby Letter of Credit, Under ISP98

URDG (Uniform Rules of Demand Guarantee)

(6) TRANSFER, ASSIGNMENT AND TRANSFER BY OPERATION OF LAW: 6.02 : When drawing rights are transferable (7) CANCELLATION:

7.01: When an irrevocable standby is cancelled or terminated

7.02: Issuer‟s discretion regarding a decision to cancel (8) REIMBURSEMENT OBLIGATION

8.04: Bank-to-bank reimbursement (9) TIMING:

9.05:Retention of standby

(10) SYNDICATION/PARTICIPATION

d. WHAT IS DEMAND GUARANTEE?

Demand Guarantee Three – Party

Demand Guarantee Four – Party/counter guarantee

Independence of guarantee e. LAW AND JURISDICTION f. PARTIES TO DEMAND GUARANTEE

Applicant/Instructing party

Guarantor

Beneficiary

Counter-guarantee/Counter-guarantor

Issuance of the local guarantee

Counter-guarantee

Types of Guarantee g. OPERATION OF A DEMAND GUARANTEE SUBJECT TO URDG758 h. KEY ASPECTS OF URDG 758:

Application of URDG

Definitions

Interpretation

Independence of guarantee and counter guarantee

Non – documentary conditions

Advising of guarantee or amendment

Presentation

Requirements for demand

Information about a demand

Partial demand and multiple demands; amount of demands

Examination

Time for examination of demand; payment

Currency of payment

Extend or pay

Non-complying demand, waiver and notice

Reduction and termination

Force majeure

Transfer of guarantee and assignment 0f proceeds

Governing law

Jurisdiction

URDG 758 vs Local Law

i. CASE STUDY

j. POST TEST

22

The Road to CDCS

MODUL 11: OTHER PRODUCTS RELATING TO A DOCUMENTARY CREDIT, MONEY LAUNDERING AND TERRORIST FINANCING AND ISLAMIC TRADE AND FINANCE



1 Day

Other products relating to a documentary credit

Money laundering and terrorist financing

Islamic Trade

Finance

.

a. INTRODUCTION

b. RELEASE OF GOODS BY CARRIERS … c. SHIPPING GUARANTEE AND INDEMNITY

The form of indemnity –Common feature

The form of indemnity

The risk d. AIRWAY RELEASE AND DELIVERY ORDERS

The forms

Counter-indemnity

Risks e. LETTER OF INDEMNITY (LOI):

Liabilities

The form of the LOI

Counter-indemnities f. PARTICIPATION AND SYNDICATION

Syndication agreement g. THE PRACTICE OF MONEY LAUNDERING h. VARIETY OF TECHNIQUE:

Cash transactions

Undervaluing or overvaluing invoices

Shell companies and trusts

Bank capture i. THE PRACTICE OF TERRORIST FINANCING PREVENTION:

Know your customer (KYC)

Know your customer‟s business

Know your business (obligations)

Keep records

Report suspicions j. SANCTIONS k. ISLAMIC TRADE FINANCE

The growing significance of Islamic finance.

How Islamic finance fits within Islam – a brief introduction Divine guidelines in Islamic finance

Core principles The prohibition of usury and interest (riba) Prevention of excess uncertainty (gharar) in

contracts Prohibition of speculative transactions (maysir) Exclusion of investments forbidden in Islam

(muharramat)

Structures in Islamic finance Musharaka Basic rules of sale in Sharia Salam Murabaha

Islamic trade finance Overview Murabaha documentary credits Murabaha documentary collection Musharaka documentary credits Salam pre-shipment export financing Islamic finance and UCP 600 Leading the way

l. CASE STUDY m. POST TEST

23

The Road to CDCS

“The Road to CDCS”

I will attend : Please tick (v) in the box on the event you attend to :

Please read the payment instructions below (under “Registration Fees”) carefully before responding. Full Name : ___________________________________________________________________________ Company : ___________________________________________________________________________ Position : ___________________________________________________________________________ Address : ___________________________________________________________________________ ____________________________________________ City : _________________________ Contact Telephone : ___________________________________________________________________________ Email : ___________________________________________________________________________ Invoice address : ___________________________________________________________________________ ___________________________________________________________________________ Invoice attn. : ___________________________________________________________________________ Full Package Investment : Rp. 25.000.000/participant

Please complete this Registration Form and return it to ICC Indonesia by email to [email protected]

or fax to (021) 29667914 (Attention: Ms. Susan/Santi/Karisa) Payment should be made to ICC Indonesia

IDR ACCOUNT 070.11.955.31 Permata Bank, MenaraKadin Branch, Jl. HR. Rasuna Said X-5 Kav. 2-3 Jakarta Date ………………………………………… Signature ……………………………………………… 50% of the fee will be chargeable if the notification of cancellation is received within 5 working days prior to the program. Tempo Pavilion 1 bld 8th Floor, Jl. H.R. Rasuna Said Kav. 11 Jakarta 12950 Indonesia

T: (62 21) 29667914 | F: (62 21) 29667915 | E:[email protected] | W:www.iccindonesia.org

REGISTRATION FORM

Modul 1: Sales contract & Incoterms 2010 (1 Day) 27 Aug 2014 : Rp. 2.000.000

Modul 2: Method of Payment & Overview of Documentary Credit (1 Day) 28 Aug 2014 : Rp. 2.000.000

Modul 3: Documentary Credit: Types, Uses and Characteristics

(2 Days) 3 & 4 Sept 2014 : Rp. 4.000.000

Modul 4: Issuing & advising the Documentary Credit (1 Day) 11 Sept 2014 : Rp. 2.000.000

Modul 5: ISBP 745 (2 Days) 13 & 20 Sept 2014 : Rp. 4.000.000

Modul 6: Preparation & Examination of Transport Documents (include ICC Rules)

(2 Days) 11 & 18 oCt 2014 : Rp. 4.000.000

Modul 7: Other Documents (1 Day) 1 Nov 2014 : Rp. 2.000.000

Modul 8: Settlement & Bank-to-bank reimbursements under Doc. Credit

(1 Day) 8 Nov 2014 : Rp. 2.000.000

Modul 9: Documentary Collection under URC 522 & e-UCP (1 Day) 15 Nov 2014 : Rp. 2.000.000

Modul 10: Standby Letter of Credit (ISP98) & Demand Guarantee (URDG)

(2 Days) 22 & 29 Nov 2014 : Rp. 4.000.000

Modul 11: Other products relating to a documentary credit, Money laundering, terrorist financing and Islamic Trade Finance

(1 Day) 13 Dec 2014 : Rp. 2.000.000

mailto:[email protected]

mailto:[email protected]

http://www.iccindonesia.org/