Training Courses

Our signature international trade course are as follows:

  1. Incoterms 2010
  2. Letters of Credit: An Indepth Understanding
  3. Bills of Lading Correct Preparation to Avoid Rejection in Letters of Credit Transactions

 

Incoterms 2010

Incoterms are international rules published by the ICC for the interpretation of trade terms eg EXW, FOB, CFR, CIF, CPT etc.  Exporters, Importers, Bankers and Insurers, Freight Forwarders and Carriers need to be aware of the new changes in Incoterms 2010 which have critical implications to their businessespecially on the following :

  • Carriage of goods between seller/buyer
  • Export and import clearance requirements
  • Allocation of costs between seller & buyer
  • Acquisition of transit/cargo insurance
  • Assumption of risks for loss and damage

Incoterms 2010 promise to be very concise and more relevant to business transactions and cargo security issues which are now at the forefront of the transportation agenda of numerous countries.The changes in the new Incoterms rules are massive, sweeping as well as practical.  Four terms under the old Incoterms 2000 were taken out.  Two new terms  DAT (Delivered At Terminal) and DAP (Delivered At Place) have been added.  The ship’s rail is no longer mentioned as the point of delivery in FOB, CFR and CIF!  Who should pays for terminal handling charges are now being clearly specified.

Our new two day totally revised Incoterms course featuring renowned master trainer Mr. BILLY FONG, who will use extensive colourful graphics and diagrams will cover the following

Course Outline

  1. Methods of Payment in International Trade – An overview
  2. Introduction to Incoterms
    • What are Incoterms?  Why Revision of Incoterms – Its purpose and scope.
    • What important matters are covered by the new Incoterms 2010 and the main
      changes to Incoterms 2000?
    • The new classification under the new Incoterms 2010
    • The importance of ‘Point of Delivery’ versus ‘Agreed Point’ in international trade
  3. Trade terms commonly used in International Trade : A pictorial presentation, Responsibilities of Seller & Buyer, Point of Delivery – Division of Cost and Risk, Case Studies.
    • EXW (Ex Works)
    • FCA  (Free Carrier) – Comparison with EXW – similarities & differences
    • FAS (Free Alongside Ship)
    • FOB (Free On Board)
    • CFR (Cost And Freight)
    • CIF (Cost Insurance And Freight)
    • CPT (Carriage Paid To) – Comparision with CFR – differences and similarities
    • CIP (Carriage Insurance Paid)
    • DAP (Delivered At Place) – Comparison with DAF, DES and DDU,CPT
    • DAT (Delivered At Terminal) – Comparison with DEQ
    • DDP (Delivered Duty Paid) – Comparison with EXW
  4. Modified Incoterms – What are the risks involved ?
  5. How to use and choose Incoterms for domestic and international trade.
  6. Insurance issues in Incoterms

Training Dates Conducted

DATE VENUE
15 & 16 Feb 2017 Crystal Crown Hotel, Petaling Jaya
22 & 23 Mar 2017 Crystal Crown Hotel, Johor Baru
 12 & 13 Apr 2017 Crystal Crown Hotel, Petaling Jaya
 24 & 25 May 2017 City Bayview Hotel, Penang
 14 & 15 June 2017 Crystal Crown Hotel, Petaling Jaya
 16 & 17 Aug 2017  Crystal Crown Hotel, Petaling Jaya
 27 & 28 Sept 2017 City Bayview Hotel, Penang
 12 & 13 Oct 2017 Crystal Crown Hotel, Petaling Jaya
 6 & 7 Dec 2017 Crystal Crown Hotel, Petaling Jaya

Letters of Credit

Almost  70% of all manufacturers and traders use Letters of Credit, which they think is a safe method of payment in international trade.  The truth is, Letters of Credit are fraught with risks!!!   Letters of Credit can means sales & profit as well as BUSINESS CATASTROPHE!!!  We have many documented cases of non-payment under Letter of Credit, which had happened in Malaysia!   Ignorance can be costly!

Course Outline

  1. Overview of Methods of Payment and Trade Facilities in International Trade.
  2. Trade Documents commonly used in International Trade – Bills of Exchange, Bills of Lading, etc.
  3. Trade terms commonly used in International Trade
  4. Step by Step detailed flowcharts and Samples on how various types of Letter of Credit work.
  5. Secret Cost Saving Areas in LC transactions which your bankers will never tell you.
  6. Case Studies on non-payment under LC where traders had lost millions of ringgit!
  7. Why payment are often delayed in LC transactions and how to overcome this.
  8. Date of Issue, Shipment, Presentation; Date and Place of Expiry.
  9. Role and Liability of Banks and Rights of Recourse
  10. Practical pointers when applying for a Letter of Credit (Importer).
  11. How to prepare and check documents to avoid discrepancies.
  12. Discussion on Discrepancies – Why; How To Resolve
  13. Practical pointers when presenting documents under a Letter of Credit (Exporter)
  14. How to avoid Pitfalls and Traps in the use of Letters of Credit.
  15. Detailed checklists for Exporters and Importers
  16. Concept of Confirmed LC and “Silent Confirmation LC
  17. Application of UCP 600 in Letter of Credit
  18. Back to Back LC and Transferable LC 

Training Dates Conducted

DATE VENUE
22 & 23 Feb 2017 Crystal Crown Hotel, Petaling Jaya
 27 & 28 Feb 2017 Crystal Crown Hotel, Johor Baru
 15 & 16 Mar 2017 Crystal Crown Hotel, Petaling Jaya
19 & 20 Apr 2017 City Bayview Hotel, Penang
 17 & 18 May 2017 Crystal Crown Hotel, Petaling Jaya
 19 & 20 July 2017 Crystal Crown Hotel, Petaling Jaya
 13 & 14 Sept 2017 Crystal Crown Hotel, Petaling Jaya
 8 & 9 Nov 2017  Crystal Crown Hotel, Petaling Jaya

A major palm oil exporter in Johore recently lost almost RM20 million due to a discrepancy in the bill of lading under a export LC!!!

Yes! All it takes is just ONE discrepancy in export documentation under LC to WIPE OUT a few years or all your past years’ profit! According to a survey, about 80% of discrepancies in Letters of Credit are from transport documents especially the Bill of Lading.

The main reason being many shipping agents and freight forwarders are still not familiar with the strict requirements under UCP600 and ISBP (the international rules governing LC transactions) with regards to how bills of lading are to be issued. Even many of the bankers in Malaysia are also not fully conversant with the requirements of UCP600 and ISBP.

Traders and those involved in international trade must therefore arm themselves with a wealth of knowledge to protect their own interest.   This advance course is for those involved in sea freight.

Course Outline

  1. The compulsory requirements of UCP600 and ISBP on the preparation Bills of Lading, Charter Party Bill of Lading, Non-Negotiable Bill of Lading & Multi-Modal Transport Documents viz:
  2. The meaning and practical usage of “To Order of Shipper” in the consignee column.
  3. Authoritative case studies published by ICC on BL rejected by banks due to discrepancies created by shipping agents and freight forwarders.
  4. The different ways in which Shipping Lines and the ICC define Pre-Carriage, Ocean Vessel, and Feeder Vessel.
  5. How data are often being wrongly put in the Place of Receipt, Port of Loading, Port of Discharge and Final Destination on the BL when the journey also involved a land bridge?
  6. Telex Release of Goods – Risk Implications for the carrier, exporters and banks
  7. Recent fraud cases involving shipping lines, and banks using bills of lading and shipping guarantees
  8. The use of Sea Waybills in LC – Advantages and Risk implications for exporters, importers and banks.

Training Dates Conducted

DATE VENUE
27 Mar 2017 Crystal Crown Hotel, Petaling Jaya
23 May 2017 City Bayview Hotel, Penang
24 July 2017 Crystal Crown Hotel, Petaling Jaya
18 Sept 2017 Crystal Crown Hotel, Johor Baru
6 Nov 2017 Crystal Crown Hotel, Petaling Jaya