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Mastering INCOTERM® 2020 and Letters of Credit

24 Feb, 2021, Webinar Classroom Training

IPA Training is Registered with

Venue Details

Webinar Classroom Training


Contact us

FOR COURSE DETAILS

Juliany,

Office: 03 2283 6109

Mobile: +60 122281247

juliany@ipa.com.my

Phoebe,

Office: 03 2283 6100

Mobile: +60 193637822

phoebe@ipa.com.my

Bee Teng,

Office: 03 2282 6112

Mobile: +60 172566121

beeteng@ipa.com.my

FOR CUSTOMISED IN-HOUSE TRAINING

Jane,

Office: 03 2283 6101

Mobile: +60 129418251

jane@ipa.com.my

Keith,

Office: 03 2283 0000

Mobile: +60 162272735

keith@ipa.com.my

ADDRESS

A-28-5, 28th Floor, Menara UOA Bangsar,
No.5, Jalan Bangsar Utama 1,
59000 Kuala Lumpur

FOCUSING ON
  • INCOTERM 2020
  • LC OPERATIONS

INTRODUCTION

International trade is a risky business if traders do not know how to interpret where their risk starts and stops. It is not just about buying and selling, but also all cost, task and responsibilities along the entire supply chain. Hence knowing the rules in each Incoterm and its application to Supply Chain is of paramount importance.

 

Traders will also have to ensure that payment from overseas customer can be effected when it is due. Hence the use Letter of Credit (L/C) to mitigate this collection risk. However, LC comes with a lot of terms and conditions, especially on deadlines and documentations, where the exporter needs to comply.

COURSE LEARNING OUTCOMES
  1. Comprehend knowledge of the different Incoterms 2020 and its application along the supply chain.
  2. Perform the different task, cost and risk on different Incoterms to reduce supply chain risk
  3. Display understanding of different types of LC and its terms under the SWIFT Code and UCP 600 terms
  4. Display the detail procedures on how an LC works and how to avoid making mistakes to save time and cost
  5. Outline compliance of LC terms and conditions and the most practical Incoterms 2020 to be used in along the Supply Chain
WHO SHOULD ATTEND
  • Account Executives, Accounts Supervisors, Accounts Assistants
  • Internal and External Audit Staffs
  • Procurement and Sales personnel
  • Import and Export Department Staffs
  • Entrepreneurs and any other personnel who wants to have in sight knowledge of Incoterms 2020.
METHODOLOGY
  • Participative and active lectures, group discussions, and free flow of questions.
COURSE CONTENT
9:00

INCOTERM 2020

What are Incoterms and its application?

  • What does Incoterm term covers and its relationship with insurance?
  • The difference between Incoterm 2020 and Incoterm 2010
  • The key changes to Incoterm 2020
  • When Sales can be recognized in Accounting under each Incoterm?
  • When Assets (goods) can be recognized in Accounting under each Incoterm?
 

Detail Task, Risk and Cost of different Incoterms

  • Detail Explanation of the 11 Incoterm 2020
  • Task of Loading, Unloading, Outbound and Inbound Transportation and Customs Clearance.
  • Cost Responsibilities of Importer and Exporter and up to which point.
  • Classes of Insurance required incoterm CIP and CIF
  • “Shipped on board” notation on Bill of Lading under incoterm FCA, CPT and CIP to meet LC requirements.
  • Transfer points of risk of the cargoes from Exporter to Importer.

 

  Case Study Analysis
1:00 Lunch
2:00

LC OPERATIONS

Understanding the purpose and types of LC and its terms under SWIFT Code format.

  • What is an LC and its purpose in international trade?
  • Does LC provides full security for payment from customers?
  • Parties to LC in practice
  • How is LC operated in serving its purpose?
 

Tips to Comply LC terms and Minimize Collection Risk

  • Understand the LC required terms under UCP 600
  • Practical actions to ensure compliance of all the terms stated in a LC
  • Interpretation of the LC terms on dates as outlined in UCP 600
  • Collection risk for non-compliance of LC terms and conditions

 

5:00 End of Course