CONSULTANCY & SPECIALIST TRAINING “ADVANCED TECHNIQUES OF FOREIGN TRADE”, TRADE & EXPORT FINANCE, CREDIT RISK MANAGEMENT
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For financial partners research, research and negotiation banking instruments for export / trade finance (documentary credits, stand by, international bank guarantees, forfeiting, etc.), export credit management CLICK HERE
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Through the expressions of interest to courses, according to the number of accessions room will be organized, both at distance and in locations closest to the residence of participants, using also dates of courses already planned in collaboration with other training organizations on which the teacher works. The cost of participation depends on the above-mentioned parameters and will be communicated following the pre-enrolment. The didactic administrative office of IBS thanks for your collaboration.
CONTACT US FOR THE COURSES, OR FOR A CONSULTANCY:
CONTENTS OF THE PAGE:
- SECTION A: list training courses Foreign Trade, Credit Risk Management
- SECTION B: detail information on each and every course
- SECTION C: consultancy paths and advanced consultancy
- SECTION D: extra information on methodology, competencies, and certifications
- SECTION E: information on spokesman and consultant
- SECTION F: publications and tools on trade, export finance, credit management (available on request)
SECTION A: Specialized training offer “Techniques of Foreign Trade”, Trade & Export Finance and Credit Risk Management
LIST OF EDUCATIONAL COURSES ON OFFER AND PROPOSED FORMS: (details for each course below)
• Form n. 1 – Incoterms® 2010 the application profiles of the commercial terms in international sales, problems, operational implications, to optimise the use and reduce risks.
• Form n. 2 – International payments : payments that can be activated in foreign commercial transactions and related peculiarities, criticality.
• Form n. 3 – The documentary collections and instructions for use : transfer of operational competences on the Documentary Collections, characteristics, problems, regulations, functioning.
• Form n. 4 – International payments & credit risk management : weighted management of the insolvency risk in the context of the international sale, in the short, medium and long term, instruments among which financial instruments.
• Form n. 5 – Documentary credits : characteristics and peculiar aspects, legislation UCP 600 ICC and 745 ICC uniform international banking practice.
• Form n. 6 – New codification of the uniform international banking practice & operational management of the letter of credit : news after the Pub.n no. 745 ICC. Hyper-specialized learning process on documentary credits, operational management, news on the uniform international banking practice, impact on document production to accompany a credit.
• Form n. 7 – Workshop – Operational management of credit letter depending of the new codification of the uniform international banking practice : hyper-specialized learning process, management of two letters of credit, from the contractual agreement to proceeds, analysis of the credit and production of documents starting from the invoice and packing list.
• Form n. 8 – Documentary credits and transport documents : in the preparation of transport documents, analysis of the discordance while examining the documents accompanying a letter of credit. Specialistic learning process to understand problems and to produce conforming documents.
• Form n. 9 – Notice of refusal in the documentary credits and in the context of international bank guarantees : understand how to structure properly a notice of refusal during a non-complying presentation, in the case of documentary credits and international bank guarantees. How to behave with banks and beneficiaries after the document examination. Exercises and practical cases of real commercial transactions.
• Form n. 10 – The LC Import and the responsibility given to the bank for the letter of credit issue : in the issue of a documentary credit, how to give the bank the responsibility in the issue of the LCs, optimize the process, allowing the national importer to reduce risks in the purchase from abroad. Dynamics and problems in the designation and application for documents and transport insurance.
• Form n. 11 – International bank guarantees characteristics of the “guarantees” in use in the context of international trade, detail, criticality. Analysis of bank guarantees issued on behalf of the seller and buyer. Real cases, exercise on examination of payment guarantee.
• Form n. 12 – BPO – Bank Payment Obligation : new instrument of regulation for the firms that work abroad. Functioning and operational positioning of the BPO, examination of the principal articles of the URBPO ICC.
• Form n. 13 – Export Finance: Financial instruments for the global market : weigh up the financial and insurance instruments in service of the operators to finance and monetize your export credit. Processes and functioning of the forfeiting, insurance instruments Sace Spa and intervention of Simest Spa.
• Form n. 14 – Insurance of the export credit : weighted analysis of the insurance solutions to rule the credit risk in the sphere of international commercial transactions, in the short, medium and long-term, checking the referential normative framework, and the operational processes of the products Sace Spa, Sace Bt highlighting the functioning of the pertinent policies.
SECTION B: DETAILED DESCRIPTION OF THE TRAINING COURSES ON TRADE & EXPORT FINANCE, FOREIGN TRADE TECHNIQUES, CREDIT RISK MANAGEMENT
We consider appropriate to indicate that the form can be modified, integrated and made adequate to the needs of the customer with regard to the length, content, levels of deepening.
Form n. 1: INCOTERMS® 2010 AND CONSEQUENT USER PROFILES
Addressee professions : Foreign Office agent, export managers, transport and banking operator, international trade operator.
Level of the course: intermediate
Length of the course: 4 hours
Objectives of the course: Despite the wide use of the Incoterms® 2010, there is still the need, from the international trade agents and operators, to understand better the problems and the dimension of operational consequences. Therefore, the objective of the form is to transfer adapted knowledge and technical skills to assimilate them and to optimize their use, in order to minimize the risks in the context of an international sale.
• Definition of Incoterms® or commercial terms and operational setting of application
• Chronicle and evolution of the Incoterms® from 1936 to 2010
• The Incoterms® and the process of containerization of the goods
• General principles of the Incoterms®
• Incoterms® and Documentary credits (Letters of credit – LC)
• The maritime terms and the multimodal commercial terms
• Sections and subdivisions of the official regulations
• From the EXW (Ex-works) to DDP (Delivered Duty Paid): punctual analysis of each commercial term;
• Deepening and Comments Wall Chart Incoterms® 2010
• Exam of practical cases
• Q&A – Questions and Answers Session.
Form n. 2: International payments
Formative objectives: This form sets the objective of explaining and clarifying the forms of payment that can be operationalised in a commercial transaction with a foreign country characterizing the concerning peculiarities (settlement, risk mitigation or financing).
Contents of the form:
• The Payment Conditions in the context of an International Sale Contract
• The payment in the Open Account mode
• The context of Open Account assisted by a demand guarantee or a standby letter of credit
o Differentiation between demand guarantee and SBLC (standby letter of credit)
o Study of practical cases
• Condition of advance payment assisted by an advance payment guarantee
o Exam of an advance payment guarantee
• Illustration of the Documentary Collection concept
o Documents against Payment: D/P
o Documents against Acceptance: D/A
o Documentary Collection: and the Financing Facilities
o Analysis and discussion of real cases.
• What is “the documentary credit”
o The documentary credit: definitions, characteristics and peculiarities, structure, details on the functioning, subjects, operational profile, reference standards
o The different types of documentary credits: “by payment”, “by deferred payment”, “by acceptance”, “by negotiation” and the related services of the banks
o Procedure of “Confirmation of a documentary credit”
• The Bank Payment Obligation: BPO (Bank Payment Obligation), correct definition, stakeholders, structure of the BPO and functioning
• Cheque, Bill of Exchange, Promissory Note
• Automated collections: electronic transfer of funds to the seller account
• Clarify the concepts and the tools of Settlement, Risk Mitigation or Financing
• Q&A Session (questions and answers).
Form n. 3: Documentary collection and instructions for use
Addressees and professional profiles to which the course is addressed: Foreign office agents, export managers, banking operators, international trade operators, enterprise consultants.
Level: for the discussed themes, the level is advanced
Length of the course: 1 day;
Didactic objectives: This form wants to place itself near the ambitious objective of managing to transfer specialized operational expertise on “Documentary Collections”, showing their characteristics and representing the most peculiar aspects.
In a distinguishing way, the problems and complexities linked to the loss collection of documents, as well as dynamics characterizing the disinvestment of the underlying credit claims, in the D/A sale (Documents against Acceptance) will be sounded out. Moreover, ample space will be dedicated to the study of regulations URC 522 ICC (Uniform Rules For Collection). To conclude, some practical cases will be examined to better gain familiarity with the operation of the instrument.
Contents of the course :
• The transport documents used in the international trade: CIM (Convenzione Internazionale per le Merci in ferrovia), AWB (Air Waybill), CMR (Convention des Marchandises par Route), MTD, Bill of Lading
• The main forms of settlement in the international trade
• The documentary collection: definitions, stakeholders, regulations, and operation working methods
• “Collection Cycle”: the stages of the documentary collection
• D/P (Documents against Payment) versus D/A (Documents against Acceptance)
• What are the differences between “Clean”, “Documentary” and “Direct” Collections?
• When it is appropriate to apply the documentary collection: the advantages and disadvantages of the instrument;
• What are the roles and the responsibilities of the banks participating in the process
• When collection is dishonored: actions, close examination of notices and procedures
• D/A (Documents against Acceptance): how to mobilize, therefore to convert in money the underlying credit claims
• How to prepare and organize the Bill of Exchange
• Rule the management of interests, banking charges, costs
• Analysis of the Documentary Collections: “Creation of Documents”, “payment in local and in foreign currency”, “protest” , “partial payments” and “case-of-need”
• How to clarify carefully and appropriately the “collection instructions” to the bank
• Analysis of practical cases
• Focus: URC 522 ICC (Uniform Rules For Collection): analysis of the main articles
• Assessment Test
• Decision-making case-study
• Q&A Session.
Form n. 4 : International payments and the efficient credit risk management
Addressees to which the course is addressed: Foreign Office agents of enterprises, export managers, and enterprise consultants.
Level: intermediate level
Length of the course: from 1 to 2 days
Didactic objectives: The objective of this form is to identify, explaining the characteristics, the instruments for a profitable and aware management of the credit risk in the context of the trade and international sales, in the short, medium and long term. Specifically, the instruments with a focus on the short term will be discussed, explaining, in particular, the financial instruments.
The Export Credit Risk Management
• Defer through a deferred payment, as instrument and means to create value for the client;
• How to rule the credit risk management: by what means?
• The distinction between financial instruments and assurance instruments
• Appropriate instruments in the short term and instrument in the middle and long term.
• Monitor the critical variables: country, amount, type of goods, client, bargaining power.
The financial instruments active in the short term and those in the medium / long term
• The documentary credit: definition of documentary credit, characteristics, and peculiarities, structure of an LC, functioning, stakeholders, operation, reference standards
• The different types of documentary credits: by payment, by acceptance, by deferred payment, by negotiation and the linked performances of banks
• The confirmation stage of a documentary credit
• How to mark the role, obligations, and duties of banks
• How to take correctly advantages of a documentary credit: how to produce appropriate documents, uniform and in line with the UCP 600 ICC (Uniform Customs and Practice, Rules and Use of documentary credits, contained in the Publication number 600 of the International Chamber of Commerce of Paris) and the new uniform international banking practice
• The international bank guarantees: payment guarantee and SBLC (stand-by letter of credit)
• Short accounts on the forfeiting and on the open lines.
The insurance instruments
• Details on the normative context: both international and community and national
• The consensus: definition
• EU directive 98/29 ( of the Council, 7th may 1998, concerning the harmonization of the provisions in the field of export credit insurance, for operations guaranteed both in the medium and long term) and EU communication on the short term
• The legislative decree 143/1998 containing provisions in the field of foreign trade and the decision CIPE n. 62/2007 operations and insurable risks by SACE S.p.a.
• The supplier credit: structure, functioning, operation. What are the insurance risks
• The policies Basic Online and Plus One
• Characteristics, operative functioning of the registration (change of ownership of a property) of Policy Sace Spa
• Insurance of export credit: key principles, fields of operation, prize, entirety, compensation expected by the policy, LMA, latitude, clauses of the first risk, recovery of the claim, and expected exemptions;
• Policies BT 360° and BT Sviluppo Export
• The policy Excess of Loss
• Observations and conclusions.
Form 5: Documentary credits
Addressees : Foreign Office agents, export managers, banking profiles, international trade operators, enterprise consultants.
Level: level advanced course
Length of the course : from 1 to 3 days according to formative objectives.
Objectives: This form aims at the ambitious and challenging objective of conferring specialized operational expertise on the documentary credits (also indicated informally as letters of credit), defining accurately characteristics and remarking the most peculiar aspects and complexities. An ample space will be assigned to the analysis of the rule UCP 600 ICC and to the accurate and careful assessment of the new publication 745 ICC relating to the uniform international banking practice. Finally, various practical cases will be analyzed to understand in depth the operation and the application profiles of the instrument.
Contents of the course :
• Export Credit Risk Management: how to rule and manage the risk linked to the credit in foreign commercial transactions
• Differences in the form and substance between financial instruments and insurance instruments
• The documentary credit (also indicated as LC letter of credit): definition, characteristics and peculiarities, structure of a documentary credit, functioning, stakeholders and operation, relevant legislation
• Types of documentary credit: by payment, by deferred payment, by negotiation, by acceptance and linked bank performances
• How to delete the bank risk and country risk: the operation of “documentary credit confirmation”, “silent confirmation” and “del credere”
• How to determine the role of banks?
• What does “negotiation” mean?
• What is the meaning of “designated bank” and which performance?
• What is a Draft?
• What is the meaning of “certified”, “visaed” and “legalized”?
• In the case of “Transhipment prohibited”: can it be assumed that it is sure?
• What does “blank endorsed” mean?
• What are the consequences if you lost the documents?
• Explanation and deepening in relation to the operational management of a documentary credit / letter of credit: how to generate and present compliant documents in accordance with the legislation UCP 600 ICC and the new publication 745 ICC regarding the uniform international banking practice.
• Analysis and discussion of various real concrete cases.
• Q & A Session.
Form n. 6: The new codification concerning the uniform international banking practice and implications in the operational management of the letter of credit: news contained in the Publication n. 745 ICC
Addressees and professional profile: Foreign Office agents, export managers, banking profiles, international trade operators, enterprise consultants
Level of the course: advanced
Length of the course: from 1 to 3 days
Didactic objectives: This form wants to place itself as a learning process of a hyper-specialized nature on the theme of documentary credits and on their proper operational management. Specifically, the basic news introduced by the uniform international banking practice will be examined, estimating their influence and repercussions on the production of documents accompanying a documentary credit.
CONTENTS OF THE FORM:
• The documentary credit: definition and explanation of the instrument, through the distinctive characteristics, structure and its functioning, stakeholders, types of documentary credit, operation and relevant regulation.
• Describe and define the “uniform international banking practice”: what are you talking about in a precise manner?
• The news in the publication ISBP 745 ICC :
Considerations and preliminary remarks, general principles of the publication:
• Purpose of the publication ISBP 745 ICC
• Explanation of “Certifications” and “Declarations”
• Illustration of “Copies of transport documents”
• Clarification on documents to which the art. 19-25 UCP 600 ICC should not apply
• Clarification on definitions of: “shipping documents”, “third party documents acceptable” , “stale documents acceptable”, “exporting country”, “third party documents not acceptable”, “shipping company” and “documents acceptable as presented”
• Why the production language of documents is important
• The procedure to “sign a document”
• How to distinguish “Originals and Copies”
• What are the “Shipping Marks”
• Examine “Non-documentary conditions”
How to prepare documents in full accordance with the new ISBP 745 ICC indications:
• How to organize the “draft”
• How to prepare the invoice
• Multimodal Transport Document versus Bill of Lading
• What “On board notations” means
• Bill of Lading versus Non-negotiable Bill of Lading
• How to arrange the AWB and CMR
• How to prepare the insurance certificate
• How to proceed to the preparation of the origin certificate
• How to organize the Packing List and Weight List
• How to prepare certificates of the beneficiary
• How to complete and prepare analysis, quality and quantity certificates, certificates of inspection, sanitary and phytosanitary certificates, etc.
Analysis and study of real practical studies with accompanying documents
Q & A Session.
Form n. 7: Workshop / Laboratory: How to operationally manage the letter of credit after the new codification of the uniform international banking practice
Addressees and professional profile of participants: Foreign Office agents, export managers, banking profiles, international trade operators, enterprise consultants.
Level: advanced, hyper-specialized learning process
Length of the course: 2 days
Objectives of the workshop: The workshop is intended to be a learning process and hyper-specialized training on the operational management of a documentary credit (sometimes indicated also as “Letter of Credit”), in the light of the normative implications after the new publication concerning the international banking practice by the International Chamber of Commerce (ICC) of Paris. In this form is included the operational management of two (2) letters of credit, through a learning process that starts from the contractual agreement to the collection. Participants will be involved, firsthand, in the analysis of the documentary credit and in the production of documents, setting up the analysis starting with the collection and the packing list. To optimize the operation the availability of a work station is necessary, at a rate of 1 for each 3-4 participants.
Contents of the Workshop:
1st part- theory:
• Export Credit Risk Management: how to manage with efficiency the risk of credit in the context of foreign commercial transactions
• Differences between the insurance and financial instruments
• The documentary credit/letter of credit: definition, characteristics and peculiar aspects, structure and architecture of a documentary credit, functioning, stakeholders, operational profiles and relevant legislation
• The different families of documentary credits: “by payment”, “by deferred payment”, and also “by negotiation”, and then “by acceptance”, and the consequent bank performances
• How to delete the bank risk and country risk: what do the terms “confirmation of a documentary credit” “silent confirmation” and “del credere” mean?
• Checking of the bank role: how to determinate it?
• What does “negotiation” mean in the context of a documentary credit?
• What does designed bank means and to which performance is referred to it?
• Analysis and discussion on practical cases.
2nd part –Exercises and Workshop
Participants, divided into groups in advance, will be involved in the preparation of documents accompanying two (2) documentary credits, characterised by an increasing level of difficulty. At the end of the Workshop a session of debate and close examination with analysis and comparison of results will follow.
Form n. 8 : Documentary credits and how to prepare transport documents
Addressees of the course: Foreign Office agent and operator, banking profiles, carriers and shipping agents, enterprise consultants.
Level of the course: advanced, highly specialized learning process
Length of the course: 1 day
Objectives of the course: When examining and preparing documents accompanying a documentary credit (sometimes indicated as “letter of credit”), the largest number of discrepancies and inconsistencies concerns transport documents. Consequently, this form wants to be a specialized learning process of high expertise, based on the correct preparation of transport documents accompanying a documentary credit, with the aim to point out and assimilate the relevant problems, discordances in order to produce conforming documents without elements that can prejudice the success of the operation.
• The documentary credit: a digression among founding elements of a documentary credit, or sometimes indicated as letter of credit, from the definition to characteristics and structure, functioning, stakeholders, different types of credit, the operation and relevant regulations;
• The exemplary preparation of transport documents in full compliance with UCP 600 ICC and additional indications of the ISBP 745 ICC:
oThe “Multimodal Transport Document” document
o Peculiarities of the “Bill of Lading”
o “Sea-Way Bill” Document
o The “Charter Party Bill of Lading”
o Air Transport Document
o “Road, Rail” or “Inland Waterway Transport Documents” Documents
o Then “Courier Receipt”, “Post Receipt” or “Certificate of Posting”
• For each single transport document, these aspects will be analyzed: document issue, carrier identification, signature, shipping date, goods description, corrections, shipper and endorsement, notify party, consignee, possible transshipment, correct processing of all transport document copies.
• Analysis of artt. 26 and 27 of the UCP 600 ICC: in particular “On Deck”, “Shipper’s Load and Count”, “Clean Transport Document”,“Said by Shipper to Contain” and “Charges Additional to Freight”.
• Focus on: On board notations and concerning specific exceptions: complete analysis of possible options.
• Exercises and analysis of real cases
• Q & A Session.
Form n. 9: Notice of refusal in the context of documentary credits and international banking guarantees
Addressees: Foreign office operators, banking agents and enterprise consultants.
Level of the course : advanced, high expertise learning process
Length of the course: 1 day;
Didactic objectives: This form aims to understand the procedures to structure properly a notice of refusal in the context of a “non-complying presentation”, both in the context of documentary credits and in international banking guarantees. Specifically, more appropriate behaviors to use with banks and also beneficiaries after the examination of documents will be analyzed. During the learning process different real cases referred to concrete and really happened commercial transactions will be examined. To distinguish better and understand problems and complexities of a refusal notice, in the context of documentary credits and international banking guarantees, an exercise is also considered.
Contents of this form:
• The documentary credit (or letter of credit): starting from detailed definition, will examine characteristics, structure, functioning and operational profiles, stakeholders, types of documentary credits, operation and then the legislative framework.
• The role of the bank(s) in the context of a documentary credit
• “Complying presentation” versus “non-complying presentation”: effects and behaviors
• “Complying presentation” and subsequent acts or behaviors of the bank
• “Non-complying presentation” and consequent behaviors of banks: a detailed and complete analysis of the art. 16 UCP 600 ICC
• How to plan and organize correctly a notice of refusal
• In the case of an issue or putting in the circulation of an incorrect refusal notice: clarifications on the scope of the art. 16 UCP 600 ICC towards banks and also beneficiaries
• Notice of refusal: MT799, MT734 or manual?
• MT734 codes: analysis of “HOLD”, “NOTIFY”, “RETURN”, “PREVINST” codes
• Notice of refusal on the URDG 758 ICC regulations: focus and analysis of the art. 24
• SPECIALIZED FOCUS: a complete study of following real cases:
o LC (letter of credit) Iraq through Italian confirming bank
o LC (letter of credit) Jordan through Italian confirming bank
o Fortis Bank and Stemcor UK Limited versus Indian Overseas Bank
o LG Serbia through Serbian guarantor bank.
• Analysis and study of various concrete cases and exercises
• Q & A Session.
Form n. 10: The letter of credit LC Import: how to give to the bank the responsibility of the documentary credit emission
Addressees of the course: Foreign Office agents, export managers, banking profiles, international trade operators and enterprise consultants.
Level: advanced, high expertise
Length of the course: 1 day
Didactic objectives: The objective of this form is to optimize the process by which you give to the bank the responsibility of emitting LC (letters of credit), allowing the national importer to define and ideally contain until neutralizing risks linked to purchase process from foreign countries. To sum up, dynamics relating to problems linked to the designation and request of transport and insurance documents will be subjected to accurate assessment.
Contents of the form:
• The documentary credit: definitions, peculiar characteristics, structure of the credit, functioning, stakeholders and responsibilities, concrete operation, relevant regulations
• Classification of different types of documentary credit: “by payment”, “by deferred payment”, “by negotiation”, “by acceptance” and corresponding bank performances
• How to protect yourself and safeguard your position from the potential risk of receiving non-compliant goods
• Consider “autonomy limits of a documentary credit”
• Use the credit in a foreign bank: which effects cause on the applicant?
• What if we exclude the application of the Art. 12 b UCP 600 ICC ?
• How to efficaciously manage the risk for the travel of documents
• Pay attention to the “language of documents”: we will examine the reason why
• The transport document: first of all, who should issue it? And secondly, who should sign it and how?
• The following outcome: “Transport document issued by a freight forwarder is not acceptable”: which are the effects and relative consequences on the credit?
• With regard to Incoterms®, why avoid the use of the term CIF (Cost, Insurance & Freight)
• How to divide and prepare the insurance certificate request
• Case histories: analysis of practical cases
• Exercises: during the exercise, the participant will take charge of giving to the bank the responsibility so that it takes charge of the documentary credit emission
• Q & A Session.
Form n. 11: International bank guarantees
Addressees of the course: Foreign Office agents, export managers, banking profiles, international trade operators, enterprise consultants.
Level of the course: advanced
Length of the course: 1 day
Didactic objectives: This form aims to identify and transfer the founding characteristics of “guarantees” in use in the context of international trade, in order to examine and assimilate fully the peculiarities as well as the problems which characterize international bank guarantees. During the speech, the spokesman will analyze both bank guarantees issued on behalf of the seller and on behalf of the purchaser. This form, in addition, contemplates the study of various concrete cases of bank guarantees and a dedicated section to an exercise on the theme of the payment guarantee examination.
Contents of the course:
• International bank guarantees: description of characteristics and peculiarities, functioning, and operation, stakeholders, relevant regulations and functions.
• From the surety to the autonomous bank guarantee
• The distinction between “Direct bank guarantee” and “Counter-guarantee”: what are the differences?
• Description of different types of “guarantees”:
Payment Guarantee e SBLC (Stand By Letter of Credit)
Advance Payment Guarantee
Tender Guarantee (Bid Bond)
Retention Money Guarantee (type of banking surety)
At last the Warranty Guarantee
• Regulations URDG 758 ICC: critical analysis of principal articles, inequalities compared to ISP 98 ICC
• Regulations URDG 758 ICC / ISP98 / UCP 600: analysis of differences
• How to divide correctly the text of a “guarantee”
• Case history: analysis of various concrete cases of Stand by Letter of Credit (SBLC) and international bank guarantees.
• Exercises: during the exercise, the participant may challenge himself on the theme of how to examine a payment guarantee – “The Cyprus issue”.
Form n. 12 : BPO – Bank Payment Obligation: the new instrument of regulation for all firms that work abroad
Addressees of the course: Foreign Office agents, export managers, banking profiles and international trade operators.
Level of the course: advanced, specialized learning process
Length of the course: 1 day
Didactic objectives: Describe and clarify the operational functioning and positioning of a BPO (Bank Payment Obligation), through the exam of basic articles of the regulation URBPO ICC.
Contents of the course:
• Current scenarios and future prospects of international trade
• Positioning of the BPO (Bank Payment Obligation)
• Benefits/advantages for bank, purchaser, and seller
• Bank Payment Obligation (BPO): definition and overview, stakeholders, functioning, structure, operation, and peculiarities
• Definitions: what do “Baseline”, “Established Baseline”, “Obligor Bank”, “Recipient Bank”, “Submitting Bank”, “Payment Obligation Segment”, “Zero Mismatches” and “Transaction Matching Application” mean?
• BPO versus LC / LG : what are the differences?
• BPO (Bank Payment Obligation) and different possible methods of financing
• The Silent BPO (Bank Payment Obligation)
• What are messages “ISO 20022 TSMT” and messages “Transaction Matching Application”?
• What does “BPO Flow” mean?
• BPO (Bank Payment Obligation): Establishing a Baseline
• The BPO process of amending
• Fulfilling a BPO (Bank Payment Obligation)
• What do “Single Shipments” and “Partial Shipments” mean?
• In the case of a “Data Match / Data Mismatch on Data Set Submission”: what effects can be expected?
•“TMA pre-match facility”, “TMA data & message matching rules”, “TMA transaction states” and “TMA special requests”
• What does “Corporate to bank messaging” mean
• Actual operation and diffusion of the BPO (Bank Payment Obligation).
Focus : Deepening of principal articles of Uniform Rules for Bank Payment Obligation (URBPO), and of publication no. 750 ICC in force since 1st July 2013:
o Art. 3 : Bank undertaking is irrevocable and independent
o Art. 6 : Bank Payment Obligations versus Contracts
o Art. 7 : Data versus Documents, Goods, Services or Performance
o Art. 10 : Undertaking of an Obligor Bank
o Art. 12 : Disclaimer on Effectiveness of Data
o Art. 13 : Force Majeure
o Art. 14 : Unavailability of a Transaction Matching Application
o Art. 15 : Applicable Law
o Art. 16 : Assignment of Proceeds
• Assessment test and valuation
• Q & A Session
• Conclusions and observations
Form n. 13: Export Finance: financial-insurance instruments for the global markets
Addressees of the course: Foreign office agents, export managers, international trade operators, enterprise and management consultants.
Level of the course: intermediate
Length of the course: 1/2 days
Didactic objectives: This seminar sets the objective of considering and analysing in detail both financial and insurance instruments available for operators to finance and convert in cash their export credit. Both operations of forfeiting and insurance instruments proposed and available through Sace Spa using the relevant intervention and assistance of the Simest Spa will be examined carefully.
Contents of the course:
• How it is possible to finance international sales: with which instruments and how?
• The Forfeiting: what is it, the operation of the instrument, which cost and advantages
• The regulatory framework: both international and community and national
• What is “The consensus”
• Analysis of the “EU directive 98/29 of the Council on 7th May 1998” and EU communication on the Short Term
• Legislative decree 143 of 31st March 1998 and CIPE decision n. 62 of 20th July 2007
• What is the “buyer’s credit”: structure and functioning
• Open lines: description and operation
• What do “confirmation policy of documentary credit” and “ CreDoc online” mean
• The supplier credit: description, architecture and operational functioning. The insured risks.l
• What do “policies Plus One” and “Basic Online” mean
• What is the “transfer of Sace Spa policy”: characteristics, peculiarities and operational functioning
• Financial guarantees of Sace Spa: description and operational profiles
• Exercises and practical case: analysis of a plant sale in Ethiopia
• Conclusions and discussion.
Form n. 14: Insurance of the export credit
Addresses of the course: Foreign office operators, export managers, international trade operators, enterprise consultants.
Level of the course: intermediate
Length of the course: 1 day
Didactic objectives: The objective of this seminar is to consider and probe insurance solutions for operators to manage with efficacy the credit risk in the context of international commercial transactions, in the short and medium-long term. Specifically, the legislative framework and operation in the concrete of Sace Spa and Sace Bt products will be explored for an overview, highlighting the functioning of relevant policies.
Contents of the course:
• How to manage properly the credit risk: founding differences between financial instruments and insurance instruments
• The most significant advantages of the insurance solution
• Exam of the regulatory framework: in international, community and national contexts
• What does “consensus” mean
• EU directive 98/29 of the Council on 7th May 1998 and Eu communication on the Short Term
• Legislative decree 143/1998 of 31st March 1998 and the CIPE decision n. 62/2007 of 20th July ;
• The supplier credit: operational structure, functioning and insured risks
• Description and functioning of Plus One and Basic Online policies
• What does the transfer of Sace Spa Policy consist in: peculiarity, characteristics, architecture and operational functioning
• Insurance of export credits: foundation principles, contexts of application and operation of instruments, entirety, premiums, previewed compensation, LMA, what is intended for “the latitude”, recovery of the credit, exam of first risk clauses, checking of excess franchises.
• The BT Sviluppo Export policy and BT 360° policy
• The Excess of Loss policy.
SECTION C: DETAILS ON CONSULTANCY PATHS AND ADVANCED CONSULTANCY ON TRADE EXPORT FINANCE AND CREDIT RISK MANAGEMENT IN THE INTERNATIONAL TRADE
The consultancy concerns operational contexts:
INCOTERMS® 2010: choose the most aligned commercial term to needs, how much it impacts on payments methods, on documentary credits, which obligations and which responsibilities of parties, etc.
DOCUMENTARY COLLECTIONS: instrument definition for contractual matters: (D/P) Documents against Payment versus (D/A) Documents against Acceptance; exam of obligations and bank role in full respect of URC Publ. 522 ICC regulations; which actions, exam of notices and procedures to use in case the payment wouldn’t be made; (D/A) Documents against Acceptance: how to monetize the underlying credit claim; how to plan the Bill of Exchange. How to manage interests, expenses as well as bank charges; how to the following peculiar aspects: “Creation of Documents”, “partial payments”, “payment in local and in foreign currency”, “case-of-need” and “protest” and how to correctly specify “collection instructions” to the bank.
DOCUMENTARY CREDITS: LC (letter of credit) definition in contractual terms, LC text analysis, possible proposal to amend, research of confirming bank, valuation of bank obligations and responsibilities, determine the compliance of documents as regards to regulations UCP 600 ICC and to the Uniform International Banking Practice relevant regulation, notice of bank refusal exam, manage possible controversy with the bank in the area of discordances, various communications, etc.
INTERNATIONAL BANK GUARANTEES AND SBLC (STANDBY LETTER OF CREDIT): LG / Standby Letter of Credit definition in the context of the contract, checking of the LG / Standby Letter of Credit text, propose possible changes / integrations / or clauses, confirming bank scouting (or guarantor bank), which obligations and responsibilities of the bank, check of document compliance in full respect of regulations UCP 600 / ISP98 / URDG 758 ICC, right management of examination, administration of a possible controversy with the bank as regards to discordances, various communications, etc.
BPO – BANK PAYMENT OBLIGATION : complete assistance in managing of the instrument: definition of the contract with the client, research of the Obligor Bank / Recipient Bank, scouting bank for the issue of the “silent confirmation” (also called “silent obligation”), checking of contracts, identification of a Baseline, possible changes of the BPO, assistance in the case of Data Mismatch, support according to regulations URBPO ICC Publication n. 750.
INSURANCE OF THE CREDIT: isolate the most appropriate and convenient insurance solution for the need of parts involved, analysis of relevant contracts, etc.
EXPORT FINANCING: identify and manage the most appropriate instrument to finance exports of investment goods: forfeiting, open lines, Sace Spa policies and consequent transfer.
FORFEITING: scouting forfeiter to take advantage of a pro-sale discount of LC / promissory notes, to most convenient market conditions, the study of contracts, administration of the complete operation.
SACE SPA INSURANCE PRODUCTS: identify the most appropriate insurance product with regard to needs of parts.
ACHIEVING THE “ZERO DISCREPANCY” OBJECTIVE:
Assist the client in the operational management of LCs (letters of credit), through an innovative service of assistance and technical consultancy. The service includes:
• possible involvement in the trade agreement between parts to characterize, upstream, connotations and attributes of the LC
• LC analysis and possible changes
• possible research of confirming bank
• production of documents relevant to the beneficiary on presentation of invoice, moreover packing list and other useful information for the production of documents
• manage relations with third party institutions (carrier, inspection company, etc.) to produce relevance documents
• prepare a draft of documents to generate by third party institutions such as CCIAA (Chamber of Commerce, Industry, Crafts, and Agriculture)
• exam of documents that have been produced by third party institutions (for ex. Eur1, ATR, Certificates of Inspection, Certificates of Insurance, etc.) where it isn’t possible to produce above-mentioned drafts
• possible presentations of documents at the bank in the name of the beneficiary
• possibly managing the controversy with the Bank as regards to discrepancies, regulations, etc.
- get to reset c.d. discrepancy fees
- minimize bank charges
- guarantee sure payments and “on time”
- reduce the DSO (Days Sales Outstanding)
- optimize the business treasury
- optimize the business relationship with the client
- optimally manage human resources in the company, assign them to other functions.
FUNCTIONING AND OPERATION:
- after defining the credit, it is validated by a consultant
- the beneficiary takes charge of sending goods
- the beneficiary can send to the consultant the invoice, packing list and further possible information for the production of documents
- the consultant in this way can prepare:
• pdf files (which includes a possible “draft”, extra copy of documents, fax communications to send to third parties, etc.) with all documents relevant the beneficiary included, previewed copies by the credit
• a possible model of the Certificate of Origin (print on CCIAA form)
• draft of documents by third parties (transport documents, various declarations, etc.)
• mandate by which taking documents to the bank.
- The beneficiary will receive a communication with attached instructions to use correctly the credit via email / Pec with mandate – the whole to report on your own letterhead– pdf files of relevant documents, the whole to print and sign subsequently. The beneficiary will receive documents in the original format by third party institutions and he will deliver documents in the bank.
SECTION D: COMPETENCES AND EXTRA INFORMATION
Creating value for importers, exporters through high value-added supply of specialised services in the context of international trade, in order to improve performances on international markets.
DISTINGUISHING COMPETENCES OF SPOKESMAN
- Over 15 years of relations with institutions, banks, and industrial associations, national chamber-based systems, companies.
- ICC Certificates of Achievement on: Incoterms® 2010, Mentor 600, URC 522 ICC and Collections, URDG Master, ISBP Online, URBPO ICC, Introduction to Trade Finance, Going Global, DC Master, ISP Master.
- Formative and consultancy planning with Chambers of Commerce and ICE-Agenzia.
- Formative services of consultancy and assistance with high specialization in Trade and Export Finance.
- Administration of dynamics concerning the right management of credit risk in the context of international commercial transactions.
- Credit risk management, valuation, check, credit risk resolution through insurance as well as financial operations, in the short term through the Trade Finance and in the medium-long term through the activity of Export Finance.
- Specialistic expertise on different financial instruments in the short term: documentary credits, SBLC (Standby Letter of Credit), international bank guarantees and also bank payment obligation.
- Specialistic expertise in various thematic segments linked to Consultancy and Foreign Trade Training and:
• Internationalisation of Businesses
• Incoterms® 2010
• Export Management
• Documentary Credits, SBLC (Standby Letter of Credit)
• Documentary Collections
• International Bank Guarantees
• BPO – Bank Payment Obligation
• Insurance of the credit
• Export Financing
• Sacebt and Sace Spa Insurance Products
ICC Certificates of Achievement:
• Incoterms ® 2010
• Introduction to Trade Finance (EBRD European Bank for Reconstruction and Development Certificate)
• URC 522 and Collections (ICC Uniform Rules for Collections)
• URDG Master (URDG 758 ICC)
• URBPO (Uniform Rules for Bank Payment Obligations)
• ISBP Online (ISBP 745 ICC), The new Uniform International Banking Practice
• Mentor 600 (UCP 600 & Documentary Credits)
• DC Master (Advanced Online Training & Instruction in Documentary Credits)
• Going Global – ICC training on trading internationally (EN)
• ISP Master (Advanced Online Training & Instruction on ISP98 ICC)
• “TFP Professional Award for top class winning answer under EBRD TFP Trade Clinic” magazine Trade Exchange – The Ebrd’s Trade Facilitation Programme, Technical Trade Finance Forum, by ICC Georgia 2015.
THE SPECIALISTIC TRAINING
Formative partner and training activities, on themes linked to the internationalisation of businesses, planning to coordinate structured and customized training courses according to the customer. Addressees: commercial operators and export office agents, banking profiles, export managers, enterprise consultants or young students.
Taught lessons, slide projection, use of the flip chart, constant interaction with participants. Didactic activities attended by methodologies intended to allow the participant to feel protagonist of didactic learning process. Business concrete real cases, role playing, use of the business game, didactic methods and analysis of concrete cases, reconstruction of business problems, elaborating reference schemes that push to action and specific situations offered by didactics to test out acquired competences.
Exercises and practical cases, descriptive material, slides, and articles, in electronic format.
SECTION E: Consultant profile, spokesman Dr. Domenico Del Sorbo
Dr. Domenico Del Sorbo, graduates in Economy of the International Trade and Currency Markets, MBA degree in International Business – MIB – School of Management – Trieste MBA Accredited AMBA and ASFOR. Deep connoisseur of business internationalization processes and of credit risk management in the context of international commercial transactions. Particularly expert of Trade ed Export Finance instruments. He obtained the following certificates: ICC Certificates of Achievement on Mentor 600 (UCP 600 and Documentary Credits), URDG Master (Online Training & Instruction in URDG 758 ICC), Incoterms ® 2010, URC 522 and Collections, URBPO (Uniform Rules for Bank Payment Obligations), ISBP On line (ISBP 745 ICC), DC Master (Advanced Online Training and Instruction in Documentary Credits), Introduction to Trade Finance (Online Training in Trade Finance), Going Global – ICC training on trading internationally EN (EBRD Certificate), ISP Master (Online Training Programme in Standby Credits and ISP98). Consultant and trainer at Chamber of Commerce in Italy, institutions, industrial associations, ICE-Agenzia. He has active collaboration with: Business School of Il Sole 24 Ore, Aldini Valeriani Foundation. He writes for newsletters of the Italian chamber-based system and for Mercato Globale. He is engaged in assistance activities and specialistic consultancy in the context of documentary credits, banking guarantees for different SMEs (small and medium enterprises). He is a consultant on behalf of Sistema Camerale Servizi S.r.l. (formerly Mondimpresa), Unioncamere Lombardia, Unioncamere Puglia, Unioncamere Campania, CCIAA of Chieti, CCIAA of Ferrara, CCIAA of Pescara, CCIAA of Forlì-Cesena.
Services for preparing articles on “techniques of foreign trade” themes and scientific coordination in the context of publications relating to international trade techniques.
SECTION F: Publications and Tools (available to users that will request them upon enrolment to the website)
LIST OF PUBLICATIONS:
• Global Trade Finance Program IFC
• Crediti Documentari : preparazione della Charter Party Bill of Lading
• La banca designata nell’ambito di un credito non confermato
• La banca designata nel frangente di un credito confermato
• LC Lettere di credito: dopo il cambio della normativa
• La banca emittente : in una LC credito documentario
• Il finanziamento della attività di esportazione attraverso le operazioni di credito documentario
• BPO – Bank Payment Obligation : il nuovo strumento per regolare gli scambi degli operatori del commercio internazionale
• BPO – Bank Payment Obligation : funzionamento ed operatività
• BPO – Bank Payment Obligation: la normativa di riferimento
• LC – Crediti Documentari: “ on the basis of the documents alone “
• LC – Crediti Documentari: come allestire i ‘beneficiary’s certificate’
• LC – Crediti Documentari: come disporre la draft
• LC – Crediti Documentari: come predisporre il weight list
• LC – Crediti Documentari: come organizzare il packing list
• LC – Crediti Documentari: il ruolo banca avvisante
• LC – Crediti Documentari: come predisporre la Bill of Lading
• LC – Crediti Documentari: come disporre il documento di trasporto multimodale
• LC – Crediti Documentari: come allestire il Certificato di Origine
• LC – Crediti Documentari: come predisporre il documento di trasporto aereo
• LC – Crediti Documentari: come allestire la Sea WayBill
• LC – Crediti Documentari: come disporre il documento di trasporto su strada
• LC – Crediti Documentari: come preparare correttamente la fattura
• Guide: Export Credit Risk Management
AVAILABLE TOOLS ON REQUEST: Please send request through the section Contacts on the website.
• FIATA – FWB NN MULTIMODAL WAYBILL
• FIATA – Shippers Intermodal Weight Certification “ SIC “
• NEGOTIABLE FIATA MULTIMODAL TRANSPORT BL
• SWIFT Transportation Fields
• Clauses in Bills of Lading Allowing for Release of Goods without Requiring Presentation of the Original sheet
• Signing a Transport Document, under UCP 600 ICC
• Lost in transit documents, under UCP 600 ICC
• Form concerning the Certificate of Origin
• CMR form
• On board notation summary
• Swift Trade Messaging Trends 2015
• CMI Uniforms Rules for Sea Waybills
• Opinion Handling Procedures & TORs
• Financial Instruments Features
• Straight versus To Order Transport Document
• Rotterdam Rules & Hamburg Rules
• Incoterms® 2010 and LC Documentary Credits
• LC – Documentary Credits: the role of the Bank
• LC – Documentary Credits: On Board Notation
• Settlement, Risk Mitigation or Financing?
• Financial sheet of Iran 2016
• Financial sheet of Saudi Arabia 2016
• ICC Notes, on the principle of strict compliance
• Recommendation 12 Measures to Facilitate Maritime Transport Documents Procedures
• Uniform Commercial Code
• UCP 700 ICC Wish List
• Map of the Credit Insurance
• Slides Bank guarantees in international trade
• United Nations Convention on independent guarantees and SBLC (Standby letters of credits)
• Slides – ISBP 745 ICC
• Slides – Incoterms® 2010
• Slides – Documentary Collection
• Slides – LC – Documentary credits
• Slides – Export Finance
• Slides BPO (Bank Payment Obligation)
• The Hague-Visby Rules
• Institute Cargo Clauses
• Warsaw Convention of 1929
• Montreal Convention of 1999
• FIATA, FCR Forwarders Certificate of Receipt
• Fiata – Negotiable Multimodal Transport Bill of Lading
• FIATA FFI, Fiata Forwarding Instructions
• FIATA FCT, Forwarder Certificate of Transport
• FIATA, FWR Fiata Warehouse receipt
• Marine Insurance, Act 1906
• Bills of Exchange, Act 1882
• ICC United Rules for Multimodal Transport Document
• ICC ISP98
• CMR Convention
• CIM Convention
• Vienna Convention of 1980
• New York Convention of 1958
• Geneva Convention of 1930
• ICC – When a non-bank issues a letter of credit
• ICC – The determination of an Original document in the context of UCP
• ICC – On-board Notation Paper
• ICC – Transferable credits and the UCP 500
• ICC – Guidance Paper – Use Of Sanctions Clauses
• Form concerning the Certificate of Origin
• Rethinking Trade and Finance 2015
• Bill of Exchange
• Letter of Credit Instructions Form
• Fax Transmission Report
LINKS AND DEEPENING
- IBS foreign DESK
- IBS Blog
- Country profiles and international or geopolitical articles
- Principal Documents in International Trade
- Credit Risk definition (from the website of the Borsa Italiana)
- ICE – Agenzia
- EBRD Bank
- European Central Bank
- International Monetary Fund
- Ministry of Economic Development
- Custom Agency
- Customs Glossary
- European Union Activities in International Trade