Letters of Credit Demystified
About This Event
Letters of Credit allow shippers/exporters to send cargo confident in the knowledge that documents of title will not be released prior to payment being secured. Similarly, consignees/importers can be confident that payment will not be released until all transaction conditions have been met. A Letter of Credit is a conditional guarantee of payment and yet, up to three-quarters of initial documentary presentations in the UK are discrepant meaning that the guarantee may no longer apply, or that costly amendments may become necessary.
We shall be looking at the whole export and import function of Letters of Credit. This course serves well as an introduction to Documentary Letters of Credit but can equally be used as a revision opportunity for staff who need to bring themselves up to date. In a changing market, it can also provide a very useful overview of staff responsibilities for senior management. The course takes account of the 2020 INCOTERMS revisions and how they will be best incorporated into documents by openers or influenced by beneficiaries. For those companies supplying overseas or buying from an EU origin the course takes account of the constantly evolving post Brexit situation.
By the end of this course delegates will be able to:
- As export staff, positively influence the decisions relating to documentary requirements instructed by overseas openers of Letters of Credit.
- In the case of UK importers, open Letters of Credit in the manner most secure and in the safest interest of the importing company.
- Understand the whole procedure from opening through to negotiation of presented documents.
- The vast variety of terms used such as drafts, bills, sight, usance, etc. will be explained in plain English. Delegates should leave the course feeling that the whole subject of Letters of Credit truly has been demystified!