fr
en
Using Documentary Credits: Letters of Credit from A to Z
In international trade, closing a sale is only part of securing payment. Compare the available instruments, identify risks and prepare the right transaction documents. Strengthen your discussions with banks and business partners to choose terms consistent with your commitments.
- Duration
- 2 days 14 hours
- Code
- DOUAN009FR Code
Presentation
A documentary credit, or letter of credit, is a financial instrument used in international transactions to guarantee payment between an importer and exporter. It is a formal undertaking by the importer's bank to pay for goods shipped by the exporter, provided the exporter submits documents complying with the agreed terms and conditions.
This 2-day course develops expertise in selecting and managing the appropriate documentary credit, understanding Incoterms® 2020 and using standby letters of credit effectively. The course combines substantial theoretical and practical input, close reading of the applicable rules and analysis of real cases.
At the end of the programme, a multiple-choice assessment will validate the knowledge you have acquired.
Objectives
Target competence:
- Manage documentary credits appropriately to secure and complete international transactions successfully.
Learning objectives:
- Follow the mechanisms and rules governing documentary credits.
- Select the credit type suited to the commercial situation, considering each party's benefits and risks.
- Identify the parties involved and their options.
- Apply appropriate Incoterms® 2020 rules according to the transaction and country-specific requirements.
- Present the required documents, including invoices, certificates of origin and transport documents, to avoid discrepancies.
- Use a standby letter of credit.
Program
Understanding the fundamentals
- The distinction between payment instruments and payment techniques.
- Non-bank payment techniques.
- Documentary collection.
- The limitations of instruments and techniques.
Understanding the role and implications of documentary credits
- What is a documentary credit?
- The parties involved.
- When to use documentary credits.
- Benefits for exporters and importers.
- Drawbacks for exporters and importers.
- Different types of documentary credits.
- Different methods of making documentary credits available.
- Information sources.
Choosing the right Incoterms® 2020 for your documentary credit
- Incoterms groups E, F, C and D.
- The Incoterms best suited to export documentary credits.
- The Incoterm's role in the credit's feasibility.
- Incoterms-related documents and potential difficulties.
- Addressing documentary constraints to avoid common discrepancies.
Following the rules for documentary credits and Incoterms®
- Uniform Customs and Practice for Documentary Credits (UCP 600).
- International Standard Banking Practice (ISBP 745).
- Time limits under UCP and ISBP.
- Documents covered by UCP.
- Documents covered by ISBP.
- The Bill of Lading: maritime transport contract.
- Documents excluded from these rules.
- Document drafting guidance: what to do and what to avoid.
Following the documentary credit process
- Opening the credit: its structure.
- Issuance.
- Advising.
- Confirmation.
- Key dates.
- Amendments.
- Presentation of documents.
- Examination of documents.
- Responding to discrepancies or irregularities.
Understanding country-specific characteristics
- Documentary credits for Algeria.
- Documentary credits for Gulf countries.
- Documentary credits for South America.
- Documentary credits for other countries.
- Practical guidance for avoiding pitfalls and unwarranted discrepancies.
Understanding import-related issues
- Choosing the appropriate Incoterm.
- The applicant's requirements.
Using standby letters of credit as an alternative
- The parties involved.
- The mechanism.
- The process.
- Establishment.
- Drawing under the standby.
Audience
This course is intended for:
- Anyone responsible for international transactions in their work.
Prerequisites
This course has no prerequisites.
Teaching and assessment methods
- Initial skills assessment
- Training materials provided to participants
- Continuous assessment throughout the course
- End-of-course feedback questionnaire
- Combination of theory and practical application
- Attendance records
- Post-course follow-up evaluation
- Practical exercises
Course highlights
Theory supported by practical exercises, multiple-choice assessments and shared experience.
Dates and sessions
Choose the date and delivery format that suit you.
No upcoming sessions are currently available.
Incoterms® and the Incoterms® 2020 logo are trademarks of the International Chamber of Commerce (ICC).