Road to CDCS

8/9/2019 Road to CDCS

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1The Road to CDCS

This is a SilkRoad to become Subject Expert Matter in International Trade

CDCS

AugustDecember 2014

The Road to CDCS

THE ROAD TO CDCS


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2The 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 IFSUK.

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 credittransactions

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 09.0016.00 WIB.

PENGANTAR

Secara reguler ICC Indonesia melaksanakan annualy publik

CDCS tutorial training guna mempersiapkan para peserta yangumumnya 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 CDCSMerupakan 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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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 dibelakangnama 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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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 QUALIFICATIONSetelah 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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5The Road to CDCS

SILABUS

Modul Durasi Tanggal Investasi Materi

Modul

11 Hari Rabu, 27 Agus 14

Rp. 2.000.000 Sales contract & Incoterms 2010

Modul

21 Hari Kamis, 28 Agus 14

Rp. 2.000.000 Method of Payment & Overview of

Documentary Credit

Modul

32 Hari

Rabu, 3 Sept 14

Kamis, 4 Sept 14

Rp. 4.000.000 Documentary Credit: Types, Uses and

Characteristics

Modul

41 Hari Kamis, 11 Sept 14

Rp. 2.000.000Issuing & advising the Documentary Credit

Modul

5 2 HariSabtu, 13 Sept 14

Sabtu, 20 Sept 14

Rp. 4.000.000ISBP 745

Modul

62 Hari

Sabtu, 11 Okt 14

Sabtu, 18 Okt 14

Rp. 4.000.000 Preparation & Examination of Transport

Documents (include ICC Rules)

Modul

71 Hari Sabtu, 1 Nov 14

Rp. 2.000.000Other Documents

Modul

81Hari Sabtu, 8 Nov 14

Rp. 2.000.000 Settlement & Bank-to-bank

reimbursements under Doc. Credit

Modul

91 Hari Sabtu, 15 Nov 14

Rp. 2.000.000 Documentary Collection under URC 522 &

e-UCP

Modul10

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

Rp. 4.000.000Standby Letter of Credit (ISP98) &Demand Guarantee (URDG)

Modul

11

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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MODUL 1 : SALES CONTRACT & INCOTERMS 2010

TIME DURATION TOPICSYLLABUS

09.0016.00

(Includecoffeebreak &Lunchbreak)

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 ContractComparison;Premise(s) or Recital(s);Terms and Conditions of the contractStandard Clauses of the ContractTestimonial 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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MODUL 2 : METHOD OF PAYMENT & OVERVIEW OFDOCUMENTARY CREDIT


09.0016.00


1 Day Method of Payment

Overview ofDocumentary 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 PAYMENTINCLUDING 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 creditmethod

Any idea on UCP?

e. CASE STUDY

f. POST TEST


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MODUL 3 : DOCUMENTARY CREDIT: TYPES, USES &CHARACTERISTICS


09.0016.00


2 Days DocumentaryCredit:Types, Uses andCharacteristics

a. PARTIES ON DOCUMENTARY CREDIT

Introduction and learning objectives

Roles and responsibilitiesapplicants side

Roles and responsibilitiesbeneficiarys side

Relationship of parties in respect of payment ofconforming documents

Roles and responsibilities in reimbursement

Roles and responsibilities illustrated

b. TYPES OF PAYMENT

Settlement methodsSight payment

Settlement methodsDeferred payment

Settlement methodsBy Acceptance

Settlement methodsNegotiation

c. MAIN TYPES OF DOCUMENTARY CREDIT;

Evaluate the main characteristics of different types ofdocumentary 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 creditprocedures

Transferable documentary credit -managing risks Back-to-back documentary credit

Back-to-back documentary credit -key elements

Back-to-back documentary creditprocedures

Back-to-back documentary credit -managing risksc. COMPARING TRANSFERABLE VS. BACK-TO-BACK

d. CLEAN DOCUMENTARY CREDIT

e. ADVANCE PAYMENT DOCUMENTARY CREDITREADCLAUSE

Managing Riskf. REVOLVING DOCUMENTARY CREDIT

Installment drawings or shipments

Type of revolvement Whether the revolvementis cumulative or not

Managing Risksg. EVERGREEN DOCUMENTARY CREDIT

Sample wording to ensure the evergreen nature of astandby letter of credit

Managing risksh. DOCUMENTARY CREDITUNDER AID AGREEMENTSi. PRELIMINARY ADVICES OF DOCUMENTARY CREDIT

Preliminary advices and inoperative

k. ASSIGNMENT OF PROCEEDS

l. CASE STUDY

m. POST TEST


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MODUL 4 : ISSUING & ADVISING THE DOCUMENTARY CREDIT


09.0016.00


1 Day Issuing theDocumentary Credit a. INTRODUCTION AND LEARNING OBJECTIVE

Compliance with the policies of the bank

Compliance with, and the correctness of, the instructionsof 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 bySWIFT/telex/mail/courier

d. AMENDMENTS

Obligations of an issuing Bank

Advising ADocumentary Credit

e. ADVISING A DOCUMENTARY CREDIT

f. RELATIONSHIP BETWEEN BENEFICIARY AND ADVISINGBANK OR SECOND ADVISING BANK

Communication applicantbeneficiary following adviceof the documentary credit

g. RELATIONSHIP BETWEEN BENEFICIARY ANDNOMINATED/CONFIRMING BANK

h. RELATIONSHIP BETWEEN BENEFICIARY ANDTRANSFERRING 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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MODUL 5 : ISBP 745


09.0016.00


2 Days ISBP 745a. 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, ANDWHO IS IT INTENDED FOR?

d. RELATIONSHIP OF ISBP TO UCP

e. ENFORCEMENT OF ISBP PRACTICES

f. OVERVIEW OF CHANGES TOTHE GENERAL PRINCIPLES :

Use of Virgules and Commas

Documents evidencing sending of documents and copytransport documents

Copies of transport documents, which are subject toarticles 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-documentaryconditions

Original and copy documents

g. TRANSPORT DOCUMENTS

Multimodal, Bill of Lading, Non-Negotiable Sea Waybill &Charter Party Bill of Ladingcommon 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

Beneficiarys Certificate Analysis, Inspection, Health, Phytosanitary, Quantity,

Quality and other Certificates

h. CASE STUDY

i. POST TEST


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MODUL 6 : PREPARATION & EXAMINATION OF TRANSPORTDOCUMENTS

TIME DURATION TOPIC SYLLABUS

09.0016.00


2 Day Preparation &Examination OfTransportDocuments

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 ofgoods

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

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

Charter party bill of lading

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

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

Courier receipt, post receipt or certificate of posting:Title, negotiability and transfer; Control of goods; Delivery ofgoods

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 TRANSPORTDOCUMENTS

f. CASE STUDY

g. POST TEST


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.. continued MODUL 6 : PREPARATION & EXAMINATION OF

TRANSPORT DOCUMENTS


Examination ofDocuments

a. INTRODUCTIONb.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 paymentterms

Completion of the banks document examination record

d. EXAMINATIONS OF DOCUMENTSe.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 ofdelivery;

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 TOANY 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, mathematicalcalculations, multiple pages, non-documentary, originals &copies, shipping marks, signatures, title of docs,

k. DOCUMENTS NOT TO BE IN CONFLICT WITH ONEANOTHER

l. DOCUMENTS NOT STIPULATED BY THE DOCUMENTARYCREDIT


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TRANSPORT DOCUMENTS


Examination ofDocuments

m. NON DOCUMENTARY CONDITIONS

n. DETERMINATION OF COMPLIANCE ON DOCUMENTSALONE

o. DISCLAIMER ON EFFECTIVENESS OF DOCUMENTS

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

q. EXAMINATION OF DOCUMENTS WITH REFERENCE TOONE ANOTHER

r. EXAMINATION CHECK LISTFOR THE BANK RECEIVESTHE DOCS

s. EXAMINATION CHECK LISTFOR THE BANK ANDBENEFICIARY

t. EXAMINATION CHECK LISTOTHER DOCUMENTS

u. AN EXAMINATION LOGIC

s. AN ICC OVERVIEWEXAMINATION OF DOCUMENTS,WAIVER OF DISCREPANCIES AND NOTICE UNDERUCP:

Examine documents

Documents comply or do not comply Decide to refuse or seek a waiver

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

If waiver received, determine whether or not to acceptapplicant waiver

Processing discrepant documents in the role of theissuing bank:

Receiving prior requests from nominated banks forauthority 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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TRANSPORT DOCUMENTS


Analysis of ICCrules

a. UCP 600:

UCP 600, article 14: Standard for examination ofdocuments

UCP 600, article 18: Commercial invoice

UCP 600, article 19:

Transport document covering at least..:1. . . . two different modes of transport2. . . . however named3. indicate the name of the carrierand be signed4. . . . dispatched, taken in charge or shipped on board

at the place stated in the credit5. . . . date of shipment6. . . . place of dispatch, taking in charge or shipment

and the place of final destination7. . . . full set8. . . . terms and conditions of carriage9. . . . charter party10. . . . transhipment

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

1. . . . however named2. . . . indicate the name of the carrier and be

signed3. . . . shipped on board4. . . . date of shipment

5. . . . does not indicate the port of loading statedin the credit as the port of loading

6. . . . full set7. . . . transhipment

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

UCP 600, article 22: Charter party bill of lading:1. . . . indication2. . . . signed3. . . . shipped on board and 3b . . . date of shipment4. . . . port of discharge

5. . . . full set6. . . . 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 orCertificate of Posting

b. CASE STUDY

c. POST TEST


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MODUL 7 : OTHER DOCUMENTS


09.0016.00


1 Day Other Documents

InsuranceDocuments

Financial,Commercial Andother OfficialDocument

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 bankGiving notice of refusal;

Role of a nominated bankDiscussion with beneficiary; Role of a nominated bankCorrection by beneficiary;

Role of a nominated bankObtaining the issuing banksauthority;

Role of a nominated bankReceiving instruction frombeneficiary to dispatch documents;

Role of a nominated bankDispatch of documents;

Role of a nominated bankHandling of documentspending settlement; Settlement obligations ofconfirming and nominated banks

g. SHIPMENT OF GOODS ANDPREPARATION OFDOCUMENTS

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 ofan insurance document

i. FINANCIAL DOCUMENTS:

Bill of Exchange: Definition, Documentary creditrequirement; Corrections and alterations; Calculation ofmaturity; Payment at maturity

Promissory Note


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.. continuedMODUL 7 : OTHER DOCUMENTS


09.0016.00


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 officialpurposes

p. CASE STUDY

q. POST TEST


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MODUL 8 : SETTLEMENT & BANK TO BANK REIMBURSEMENTS

UNDER DOC. CREDIT


09.0016.00


1 Day Settlement

Bank-to-bankreimbursementsunder Doc. Credit(based on URR725 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 creditsRevocable

Special documentary creditsRefinancing

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 documentarycredit

Claims received by an issuing bank

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

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

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

i. STEP 1 : ISSUANCE 1.1Issuance 1.2Issuance 1.3

j. STEP 2 : AMENDMENT 2.1Amendment 2.2Amendment 2.3Amendment 2.4Amendment 2.5

k. STEP 3 : CLAIMING 3.1

Claiming 3.2Claiming 3.3


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.. continuedMODUL 8 : SETTLEMENT & BANK TO BANK

REIMBURSEMENTS UNDER DOC. CREDIT


l. STEP 4: CANCELLATION WHILE DOCUMENTARY CREDITSTILL VALID4.1

Cancellation while documentary credit still valid4.2Cancellation while documentary credit still valid4.3Cancellation while documentary credit still valid4.4Cancellation while documentary credit still valid4.5

m. STEP 5: CANCELLATION AFTER EXPIRY OFDOCUMENTARY CREDIT

n. PROBLEMS

o. TRANSMISSION OF PROCEEDS

p. DISCIPLINES PROMPTED BY SWIFT MESSAGE TYPES

q. CASE STUDY

r. POST TEST


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19The Road to CDCS

MODUL 9 : DOCUMENTARY COLLECTION UNDER URC 522 &

e-UCP


09.0016.00


1 Day DocumentaryCollection under onURC 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 forPresentation of Electronic Records under eUCP

c. CASE STUDY

d. POST TEST


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20The Road to CDCS

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


9.0016.00


2 Days Standby Letter ofCredit, 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 andFraudulent 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 otheroffices

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 ofanother 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


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21The Road to CDCS

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


Standby Letter ofCredit, Under ISP98

URDG (UniformRules of DemandGuarantee)

(6) TRANSFER, ASSIGNMENT AND TRANSFER BYOPERATION OF LAW:

6.02 : When drawing rights are transferable(7) CANCELLATION:

7.01: When an irrevocable standby is cancelled orterminated

7.02: Issuers 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 ThreeParty

Demand Guarantee FourParty/counter guarantee

Independence of guaranteee. 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 Guaranteeg. OPERATION OF A DEMAND GUARANTEE SUBJECTTO URDG758

h. KEY ASPECTS OF URDG 758:

Application of URDG

Definitions

Interpretation

Independence of guarantee and counter guarantee

Nondocumentary conditions

Advising of guarantee or amendment

Presentation

Requirements for demand

Information about a demand

Partial demand and multiple demands; amount ofdemands

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


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22The Road to CDCS

MODUL 11: OTHER PRODUCTS RELATING TO ADOCUMENTARY CREDIT, MONEY LAUNDERING ANDTERRORIST FINANCING AND ISLAMIC TRADE AND FINANCE


09.0016.00


1 Day Other productsrelating to adocumentary credit

Money launderingand terroristfinancing

Islamic Trade

Finance

.

a. INTRODUCTION

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

The form of indemnityCommon feature

The form of indemnity

The riskd. AIRWAY RELEASE AND DELIVERY ORDERS

The forms

Counter-indemnity

Riskse. LETTER OF INDEMNITY (LOI):

Liabilities The form of the LOI

Counter-indemnitiesf. PARTICIPATION AND SYNDICATION

Syndication agreementg. THE PRACTICE OF MONEY LAUNDERINGh. VARIETY OF TECHNIQUE:

Cash transactions

Undervaluing or overvaluing invoices

Shell companies and trusts

Bank capturei. THE PRACTICE OF TERRORIST FINANCINGPREVENTION:

Know your customer (KYC)

Know your customers business Know your business (obligations)

Keep records

Report suspicionsj. SANCTIONSk. ISLAMIC TRADE FINANCE

The growing significance of Islamic finance.

How Islamic finance fits within Islama 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 wayl. CASE STUDYm. POST TEST


23/23

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 [email protected]

or fax to (021) 29667914 (Attention: Ms. Susan/Santi/Karisa)

Payment should be made toICC IndonesiaIDR ACCOUNT 070.11.955.31Permata 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 ofDocumentary Credit(1 Day) 28 Aug 2014 : Rp. 2.000.000

Modul 3: Documentary Credit: Types, Uses andCharacteristics(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 TransportDocuments (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 reimbursementsunder 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) & DemandGuarantee (URDG)(2 Days) 22 & 29 Nov 2014 : Rp. 4.000.000

Modul 11: Other products relating to a documentary credit,Money laundering, terroristfinancing andIslamic Trade Finance(1 Day) 13 Dec 2014 : Rp. 2.000.000
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