- 1. The UCP Internet Trade Finance Workshop Training Workshop
for trade finance professionals. Text: The First Internet Trade
Transaction Manual for Global Commerce Uniform Customs and Practice
for Documentary Credits UCP 600, 2007 Revision Title e
InterNetLC.com ENGLISHTABLE CONTENTS
2. Topics and Sections: 1. The Global Trade Business Model
11.Incoterms 2. Letters of Credit 12. UCP 600 3.Assignment of
Proceeds 13.eUCP 600 4. Transferable Letters of Credit 14.eTrade
Finance Platform 5. Negotiable Electronic Records 15.eTrade Action
Maps 6. Standby Letters of Credit 16.eTrade Functions 7.Documentary
Collections 17.Export Transaction Financing 8.Open Account
Transactions 9. Bills of Exchange a. Example Transactions 10.
Global Trade Credits Contents at a Glance TABLE CONTENTS e
InterNetLC.com 3. The Global Business Model Business systems and
documents understood worldwide . Global Trade Business Model TABLE
CONTENTS e InterNetLC.com 4. Global Trade Business Model Invoice
The Global Business Model - Concept Letter of Credit The global
understanding of commercial documents, customs and procedures.Bill
of Lading Packing List TABLE CONTENTS e InterNetLC.com 5. The
Global Business Model Global Trade Business Model A business
process for conducting trade that is defined by globally recognized
trade forms and documents. Trade The exchange of tangible goods or
services between a seller and a buyer in another country for cash,
acceptance or other goods. Trade Finance The settlement
(reimbursement for title) of a trade transaction with a Documentary
Letter of Credit, Standby Letter of Credit, Documentary Collection
or Bill of Exchange, through the international banking system.
Global Trade Business Model TABLE CONTENTS e InterNetLC.com 6.
Global Trade Business Model The Trade Process - Concept 1. Sale3.
Logistics 4. Settlement Seller Buyer 2. Performance TABLE CONTENTS
e InterNetLC.com 7. The Trade Process
- Sale Finding the buyer and/or seller leading to a Purchase
Order.
- Performance Manufacturing or staging the goods for
shipment.
- Logistics Moving the goods from the export to the import
country.
- Settlement Exchanging title to the goods from the seller to the
buyer.
Global Trade Business Model TABLE CONTENTS e InterNetLC.com 8.
1. The Sale Phase Source Products Catalogs, Internet, trade shows,
contacts. Basic Ordering Agreement Contacts, addresses, terms and
conditions. Request for Quotation Request for prices, delivery,
specifications Quotation Specific as to price, quantity, delivery,
Incoterm Purchase Order Contractual agreement for price, quantity
and terms. Purchase Order Acknowledgement Acceptance of the
Purchase Order Global Trade Business Model TABLE CONTENTS e
InterNetLC.com 9. 2. The Performance Phase Global Trade Business
Model
- The Seller is obligated to produce the goods and services
contained in the accepted Purchase Order and/or Letter of
Credit.
-
- Performance is evidenced for title transfer by:
-
- Evidence of Movement Bill of Lading and Air Waybill
-
- Evidence of Value Commercial Invoice
-
- Evidence of Content Packing List
-
- Evidence of Compliance Inspection Certificate
TABLE CONTENTS e InterNetLC.com 10. 3. The Logistics Phase
Logistics The movement of goods from one country to the other.
Global Trade Business Model Importer Exporter Carriage Loading
F/Forwarder Carrier Un-Loading Customs Carriage F/Forwarder TABLE
CONTENTS e InterNetLC.com 11. 4. The Settlement Phase
- International Payment Methods
- Documentary Letter of Credit Payment at shipment.
- Documentary Trade Credit Payment at shipment.
- Documents Payment Payment upon delivery.
- Documents Acceptance Acceptance upon deliver.
- Clean Collection Cash in advance of shipment.
- Open Account Payment upon presentation of invoice.
Global Trade Business Model TABLE CONTENTS e InterNetLC.com 12.
Basic Payment Methods Global Trade Business Model TABLE CONTENTS e
InterNetLC.com Reliance of Buyer Upon arrival Buyers Discretion
Open Account Non-payment, goods with Buyer When Draft is accepted
Trade Draft Matures D/A Collection Non-payment, goods returned.
When payment made Presenting Bank D/P Collection Minimal to Seller
At acceptance of draft Maturity of B/A Usance LC Minimal to Seller
When LC is paid Presentation of Docs Sight LC None to Seller At
Destination Before Shipment Clean Collection Risk Goods Available
Timing Payment Method 13. The Settlement Process - Documents
Proforma Invoice Estimate of planned invoice after shipment Letter
of Credit Instructions Terms and Conditions for the Letter of
Credit Letter of Credit Application Application to the Buyers bank
Documentary Letter of Credit Credit issued by the Buyers bank
Letter of Credit Advice Advise of Credit to the Seller Export
License Sellers export license if required Shipper Letter of
Instructions Sellers shipping and document instructions. Global
Trade Business Model TABLE CONTENTS e InterNetLC.com 14. The
Settlement Process Documents(continued) Packing List Actual
contents of shipment Commercial Invoice Value of the goods and
services Certificate of Origin Evidence of the origin of the goods
Beneficiarys Certificate Statement that a requirement is true or
accomplished Quality Certificate Sellers or third party statement
of quality compliance Certificate of Insurance Cargo Insurance
amounts and conditions Ships Register Certificate Age and register
of cargo carrying vessel. Bill of Exchange Demand for payment
Global Trade Business Model TABLE CONTENTS e InterNetLC.com 15. The
Settlement Process Transport Documents(continued) Bill of Lading
Ocean or Marine Bill of LadingAir Waybill Air Waybill or
Consignment Note for air shipment Rail Waybill Rail Waybill for
rail shipment Truck or Straight Waybill Truck Waybill for truck
shipment Courier Receipt Expedited delivery service by air courier.
Global Trade Business Model TABLE CONTENTS e InterNetLC.com 16.
Global Trade Business Model TheGlobal Trade Business Modelprovides
guidelines, customs and procedures for doing business worldwide.The
Model is codified as individual trade documents and trade finance
instruments that are universally recognized by buyers, sellers,
freight forwarders, carriers and trade banks.Global Trade Business
Model - Summary TABLE CONTENTS e InterNetLC.com