Understanding Pitfalls in LC Transactions - 10th Run

Financing international trade is a risky business. The terms and conditions of Letters of Credit (LCs) have to be fully complied, otherwise it might lead to rejection and non-payment. This workshop is designed to help participants interpret the risks and show them how to protect themselves. The workshop is case-based, interactive and highly practical.

Key Topics

• Common pitfalls in LC operations
• Misconception of the role of sales/marketing team
• Instalment shipment vs partial shipment
• Presentation period
• Forged LCs
• Consignee trap on airway bill
• 10% retention sum
• Buyer receives all the documents under the LC, but goods may differ
• Claused bills of lading
• LC expired
• Absence of documents called for in the LC
• Insurance cover effective date
• Combined transport document pitfalls
• Bills of lading confusion pitfalls
• Specific ports of lading and discharge
• Transport document signing capacity pitfalls
• House airway bill pitfalls
• Qualified LCs
• Special conditions in LCs
• Groundnuts vs peanuts
• Soft clauses in LCs
• FOB pitfalls
• Incoterms pitfalls
• Incompatible terms in LCs
• Issuing bank wishes to protect itself
• Terms and conditions dominated by a powerful seller
• Inspection certificate trap
• LC charges pitfalls
• Expiry date and place of presentation trap