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Course objectives
Trade Finance Facilities
TRAINING PROGRAMME
Malaysian International Chamber of Commerce and Industry (16841-V)
• To identify the various types of trade finance facilities offered by the banks.
• To identify the common discrepancies in export/shipping documents and the alternatives to discrepant documents.
• To know the operating procedures of various trade finance facilities for Importers & Exporters.
• To make a choice as to the suitability of trade finance facilities manufacturing and trading business.
27-28 October 2015 9.00 a.m - 5.00 p.m
Sime Darby Convention Centre
Banks play an important role in facilitating and financing international trade transactions thereby leading to growth of the overall economy. So are exporters and importers who are the players in international trade.
The much needed working capital and trade financing facilities to run the day-to-day business either for local purchases and sales, or for imports and exports of a company, depends very much on the company’s availability of suitable trade finance products that are offered by banks.
For more information contact:Pathma Nathan at [email protected] or call 03-6201 7708.
Malaysian International Chamber of Commerce and Industry (MICCI) Block C-08-8, Plaza Mont’ Kiara, No.2 Jalan Kiara, Mont’ Kiara, 50480 Kuala Lumpur
tel: 03-6201 7708 fax: 03-6201 7705 web: www.micci.com
MICCI Member: RM1,100 Non-Member: RM1,250
(Inclusive of 6% GST) Fee includes course materials,
certificate of attendance, lunch and tea breaks)
Sharifah Mariam holds a Bachelor of Arts (Economics) degree from University of Malaya, Kuala Lumpur. She has undergone extensive practical training in Credit & Financial Analysis, and International Trade Finance at Institute Bank-Bank Malaysia (IBBM), Bank Nationale De Paris, Singapore and various professional training institutes.
She has more than 20 years of experience in the banking industry specialising in Letters of Credit & International Trade Finance, Business Loan Processing, Credit & Financial Analysis, and General Banking Operations.
FACILITATOR
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTSRY (CO. NO:16841-V)
TRADE FINANCE FACILITIES
27 & 28 October 2015 (Tues and Weds , 09.00am to 05.00pm,Sime Darby Convention Centre. Kuala Lumpur
Introduction Banks play important role in facilitating and financing international trade transactions thereby leading to the growth of overall economy. So are the exporters and importers who are the players in international trade. The much needed working capital and trade financing facilities to run the day-to-day business either for local purchases and sales, or for imports and exports of a company, depends very much on the company’s availability of suitable trade finance products which are offered by banks.
Today banks can provide various trade finance facilities to help companies in their trading activities by giving various types of advances to importers (when importers are faced with tight cash position) and exporters (pending receipt of proceeds from the importers). The trade finance facilities offered by banks are Letter of Credit, Trust Receipts, Bankers Acceptance, Export Credit Refinancing (pre/post shipment), Foreign Bills of Exchange Purchased/Discounted, Shipping Guarantee, Bank Guarantee, Forex etc. Explanation on each type of facility will be given in order to suit the requirement of a company. As such the role of a bank is complementary to the business growth of a company, local as well as international.
Course Objectives Upon completion of the programme, participants will be able:
! To identify the various types of trade finance facilities offered by the banks.
! To identify the common discrepancies in export/shipping documents and the alternatives to the discrepant documents.
! To know the operating procedures of various trade finance facilities for importers and exporters as stated above.
! To make a choice as to the suitability of trade finance facilities of banks to finance manufacturing and trading business.
! To understand the financing of a particular trade where funds are controlled by banks.
WHO SHOULD ATTEND?
Financial Controllers, Account Executives, Finance Executives, per-sonnel involved in importing, manufacturing, exporting, shipping, freight forwarding, and trading concerns.
METHODOLOGY The programmes are conducted through interactive classroom lectures on key concepts, demonstration of procedures through visual aids, laptop & LCD projector, sample or real Letters of Credit and other shipping documents, various exercises given to participants to further understand the flow of Letter of Credit and the shipping documents, resolving problematic Letter of Credit, addressing discrepant documents and non-compliance to Letter of Credit, and exercises on other trade finance products.
COURSE
CONTENT
Module 1-‐ Naming the various trade finance faciliEes of the bank.-‐ FuncEons of trade faciliEes as compared to ordinary loan
faciliEes.
Module 2 -‐ Trade faciliEes for importers: Types of LeFers of Credit (LC):
-‐ Normal LC-‐ Confirmed LC-‐ Red Clause LC-‐ Revolving LC-‐ Transferable LC-‐ Back-‐to-‐Back LC-‐ Standby LC-‐ Assignment of Proceeds-‐ Shipping/ export documents pertaining to LC
Module 3 -‐ Trade faciliEes for importers: Trust Receipt (TR)
-‐ DefiniLon of Trust Receipt-‐ Under what circumstances can importer get TR financing from
banks?-‐ Period of financing and the interest rate charged.-‐ Are goods under TR financing belong to the bank or to the
importer?-‐ At what point in Lme do the goods belong to the bank?-‐ SeMlement of TR – When?-‐ What happen when importer fails to seMle TR?
Module 4-‐Trade facility for importers & exporters: Bankers Acceptance (BA)
-‐ DefiniLon of Bankers Acceptance.-‐ Available under 4 trade transacLons:
(i) importaLon into Malaysia (ii) exportaLon from Malaysia
(iii) local purchases within Malaysia (iv) local sales within Malaysia.
-‐ Procedures for AccepLng & DiscounLng BA.-‐ Period of financing, Acceptance Commission & DiscounLng Rate-‐ SeMlement of BA. What happen if BA is not paid?
Module 5 -‐ Trade facility for exporters: Export Credit Refinancing (Pre/Post Shipment) (ECR pre/post)
-‐ ObjecLves-‐ Eligibility of products to financed under ECR-‐ Eligibility of exporters – direct (final) exporter and indirect
exporter.-‐ Pre-‐shipment Bill – Features, Method of Financing (i) Order-‐
based (ii) CerLficate of Performance.-‐ Amount of financing, period of financing and interest rate under
both methods.-‐ Availability of pre-‐shipment ECR financing through 3 types of
loan (i) Overhead Expenses (OE) (ii) DomesLc Purchase (DP) (iii) Foreign Purchase (FP).
-‐ Procedure for issuance and lodging of Pre-‐shipment Bill and drawing down of loans – examples and exercises will be given to parLcipants.
-‐ Post-‐shipment Bill – Features and Method of Financing.-‐ LiquidaLon of Pre-‐shipment Bill through financing of Post-‐
shipment Bill.
Module 6 – Trade facility for exporters: Foreign Bill of Exchange Purchased(FBEP)/ Foreign Bill of Exchange Discounted (FBED)
-‐ Features-‐ Financing exporter on usance Bills of Exchange.-‐ Financing exporter on sight Bills of Exchange.-‐ Difference between FBEP and FBED.
Module 7 – Trade facility for exporters: Documentary Bills for CollecEon (DBC)
-‐ Features-‐ Procedure of DBC-‐ Two types of DBC – (i) Documents against Payment (DP) (ii)
Documents against Acceptance (DA)-‐ Advance against DBC.
Module 8 – Trade facility for importers: Shipping Guarantee (SG)
-‐ Features-‐ Under what circumstances an importer has to get a SG from the
bank?-‐ Procedure for obtaining SG.
Module 9 – Trade facility for importers and exporters: Bank Guarantee (BG)
-‐ Features-‐ Purpose of BG-‐ Examples of BG
Module 10 – Trade facility for exporters: Packing Loan (PL)
-‐ Features-‐ Why exporters need PL.-‐ Exporter’s requirement of temporary working capital is met by
PL.
Module 11 – Trade facility for importers and exporters: Foreign Exchange (FX)
-‐ DefiniLon-‐ FX in relaLon to import and export of goods between two
countries of different currencies.-‐ Forward Exchange Contract taken up by importer/exporter in
order to hedge the funds against fluctuaLon of exchange rate.
Module 12 – Export Credit Insurance (ECI)
Covering the following risks:
-‐ Commercial risk-‐ Economic risk-‐ PoliLcal risk-‐ Unforeseen events
Module 13 – Supplementary InternaEonal Chambers of Commerce (ICC) documents pertaining to internaEonal trade
-‐ ArLcles of Uniform Customs and PracLce (UCP600) for Documentary Credits (Revision 2007)
-‐ Incoterms 2010-‐ InternaLonal Standard Banking PracLce(ISBP) for examinaLon of
documents under Documentary Credit
Summary: Matrix of Bank Financing for Importers and Exporters
COURSE FEE RM 1,100 (MICCI Member) RM 1,250 (non-member) per person for two days inclusive of lunch, tea breaks, course materials and certificate of attendance. Inclusive 6% GST.
TRAINER'S PROFILE Puan Sharifah Mariam holds a Bachelor of Arts (Economics)
degree from University of Malaya, Kuala Lumpur. She has undergone extensive practical training in Credit & Financial Analysis, and International Trade Finance at Institute Bank-Bank Malaysia (IBBM), Bank Nationale De Paris, Singapore and various professional training institutes.
She has more than 20 years of experience in the banking industry specialising in Letters of Credit & International Trade Finance, Business Loan Processing, Credit & Financial Analysis, and General Banking Operations. She has conducted various courses in the above fields to manufacturing, exporting and trading companies, government linked companies and various business organisations.
Puan Sharifah has regularly conducted and facilitated public programmes on Letters of Credit and Trade Finance organised by MATRADE and FMM Malaysia, she also conducted several in-house training programmes at companies, attended seminars and conferences pertaining to International Trade Finance.
The companies and organisaLons that have benefiMed from her in-‐house training on LeMers of Credit & InternaLonal Trade Finance are:
(1)FPG Oleo Chemicals Sdn Bhd, Kuantan, Pahang.(2) Innovalues Precision Sdn Bhd, Pasir Gudang, Johor.(3) Nora & Associates, Johor Bahru.(4) SMI Training Co., Johor Bahru, Kuala Lumpur & Penang.(5) Quantum Supplies Sdn Bhd, Kuala Lumpur.(6) BHP Chemicals Sdn Bhd, Kuala Lumpur.(7) Prestar Resources Sdn Bhd, Rawang, Selangor.(8) Myoshi Precision (Malaysia) Sdn Bhd, Johor Bahru, Johor.(9) M&S Food Industries Sdn Bhd, Ipoh, Perak.(10) Dunham-Bush Industries Sdn Bhd, Kajang, Selangor.(11) Everspark Industries Sdn Bhd, Senai, Johor Bahru, Johor.(12) MATRADE Kuala Lumpur, Johor Bahru and Kota Kinabalu.
Besides specialising in Banking and Trade Finance, she has also undergone extensive English language training conducted by BriLsh Council lecturers, CPA (Australia) English lecturers, Enhancing Corporate Image, Social and Business ELqueMe and Grooming, and various in-‐house English Language Grammar and CommunicaLon training from Elementary (grammar) to Advanced level.
CONTACT PERSON
Malaysian International Chamber of Commerce & IndustryC-8-8, 8th Floor, Block C, Plaza Mont Kiara, No. 2 Jalan Kiara, Mont Kiara, 50480 Kuala Lumpur
Phone: 03-6201 7708 / Fax: 03-6201 7705
Attn: Ms Kavitha / Pathma Nathan ([email protected] / [email protected])
Registration Form (Fax to 03 6201 7705) – Pathma Nathan / Rosha Email: [email protected]> / [email protected]>
Tel : 03-6201 7708
MALAYSIAN INTERNATIONAL CHAMBER OF COMMERCE AND INDUSTSRY (CO. NO:16841-V)
TRADE FINANCE FACILITIES27th & 28th October 2015 (Tuesday & Wednesday), Sime Darby Convention Centre,KL
Name Designation Handphone no.1. _______________________________ ______________________ ____________________ 2. _______________________________ ______________________ ____________________ 3. _______________________________ ______________________ ____________________
Submitted by: __________________________________________________________________
Company / Organization: ________________________________________________________
Address: ______________________________________________________________________
______________________________________________________________________________
Telephone: ______________________________ Fax: ________________________________
Email: __________________________________ Contact Person: ______________________
Designation :_________________________Course FeesRM 1100- price per person (MICCI member)RM1250 - price per person (Non-member)(fee inclusive tea breaks and course materials, inclusive 6% GST)
Payment / Terms & ConditionsYou can transfer the payment to Account No: 14194-0-01-001737-8, Alliance Bank Malaysia Berhad in favour of Malaysian International Chamber of Commerce & Industry. A copy of the transfer slip should be faxed to 03 6201 7705 together with this form OR
You can pay by cheque made in favour of Malaysian International Chamber of Commerce And Industry OR MICCI and mail this form together with your cheque to: Malaysian International Chamber of Commerce & Industry, C-8-8, 8 th
Floor, Block C, Plaza Mont Kiara, No. 2 Jalan Kiara, Mont Kiara,50480 Kuala Lumpur.
Cancellations must be made in writing. There will be no refunds for cancellations made less than five working days prior to arrival but substitutions are allowed. The organizer reserves the right to modify, cancel or postpone the event, should circumstances arise that make such action necessary. All changes will be notified in advance.
O MemberO Non Member
Meal OptionVegetarian / Non-vegetarian* (delete not applicable)
