Letters of Credit are used by importers to guarantee shipment and by exporters to secure payment. This course seeks to dispel some of the myths that surround Letters of Credit and demonstrate their power as a business tool for both importers and exporters.

Letters of Credit are used by importers to guarantee shipment and by exporters to secure payment. It is reported by the major international banks that 60% to 70% of documentary submissions by exporters are rejected on first presentation because they don't comply with the conditions of the credit. This can lead to increased costs, loss of goodwill and in the worst scenario - non-payment.
The main causes of failure are a lack of understanding of the underlying principles and failure to construct a workable credit that relates to the sales contract.

The tutor will seek to dispel some of the myths that surround letters of credit and demonstrate their power as a business tool for both importers and exporters. The delegates should gain an understanding of the role and structure of a Documentary Credit or draft and the circumstances under which each should be used.

Have an understanding of the security, speed and cost of international trade payments

Be able to understand the terminology, structure, dynamics and content of a documentary credit

Understand the importance of the sales contract and its role in creating a workable documentary credit

Understand the roles of each of the parties involved in a documentary credit

Understand why documents are required to satisfy the conditions of the credit

Be able to identify the source of the documents and how they should be completed

Be able to assess the desirability of credit information

Gain an understanding of the rules governing documentary credits

Gain knowledge of different types of credits

Be able to formulate a method for the collation and submission of documents

Understand what action to take in the event of failure

Understand the roles of drafts in conjunction with documentary credits

Understand the options for negotiation of a letter of credit

Plymouth Chamber of Commerce, 22 Lockyer Street, Plymouth, PL1 2QW

This course is suitable for both importers and exporters. The content will be relevant to field and office based sales staff, purchasing staff, shipping and despatch personnel, accounts and finance staff, customer service staff and freight forwarders.

Plymouth Chamber of Commerce International Trade Department

Full course material, buffet lunch and refreshments.