By Mr. Stephen Kum
20 & 21 March 2019, 9:00 am to 5:00 pm
Kuala Lumpur
(100% Claimable From HRDF/PSMB)
Course Introduction

Letters of credit are governed by the "autonomy principle" and "strict compliance doctrine" by the banks. This means the issuing bank will pay the beneficiary on presentation of the requisite documentation even in cases of breach of contract, defective goods and non-performance except fraud. Hence, L/C should be regarded as an independent contractual tool in facilitating payment success.

Course Benefits
  • Understanding the operatives of documentary credit and documentary collection in import export trade.
  • Familiarizing the shortfalls and pitfalls of trade payment in the transportation chain from exporter to importer.
  • Learning the trade documentation and shipping operation risks from pre-departure to post-arrival of shipment.
Who Should Attend
  • A mandatory course for executives in trade payment, finance, sales, export operations, credit control, order management.
  • An enriching course for non-finance executives from shipping, logistics, distribution, supply chain management.
Course Methodology

A workshop based seminar with practical assignments and case study appreciation. Presented in power points and course notes.

Course Outline
  1. The Principles of Documentary Credits/Collection and method of payment commonly in use:
    • The Open Account, Documentary Drafts, Letters of Credits, Payment in Advance, Cash On Delivery and On Consignment.
    • The features and differences between Irrevocable Confirmed Credit, Irrevocable Unconfirmed Credit and Revocable Credit.
  2. The common conditions of L/C and prevailing instruction discrepancies in existence :
    • Terms and factors related to shipping operations, trading customaries, documentation of statutory requirements and time limitations.
    • Terms and factors related to clean and claused bill of lading, insurance provisions and exclusions, conditions of invoice and related documents.
  3. The Comparisonlevels of various methods of payment used in international trade:
    • Analyzing the order of decreasing risk to the seller and increasing risk to the buyer, goods availability to buyer, time of payment and implications.
    • The process of Letter of Credit and Documentary Collection highlighting the critical stage and collusion point between seller and buyer.
  4. The UCP 600 Implementation & the Standard of Examination Documents from bankers:
    • Featuring the compliance issues of the Commercial Invoice, conflicting issues of the Bill of Lading and the Air Waybill in used.
    • Featuring the constraints issues of Transhipment Allowed and Not Allowed, Cargo on Deck and below Deck, Partial Shipment status.
  5. The prevailing conditions of using Documentary Collection In international trade :
    • The implied undertakings of documentary collection and the respective advantages and disadvantages.
    • The URC 522 implications and the types of payment and parties involved in the process.
  6. Awareness of types of risks in the financial and commercial circles in international trade :
    • The Buyer's credit risk and the Bank risk in the usage of documentary credit terms of payment.
    • The Buyer's credit risk and the Contract risk in breaching the stipulated terms and conditions.
Your Trainer

Mr. Stephen Kum (MBA, USA) is a fellow of The Institute of Freight Association, The Institute of Logistics & Transport, The Institute of Business Administration. Former Vice Chairman of the Persatuan Logistik Selangor and co-founder of Global Logistician Network.

He has more than 30 years of hands-on experience in the fields of international trade, global procurement, freight operation, logistics and supply chain management. His consultancy expertise relates to Incoterms execution, trade documentation, suppliers development, shipping risks and export strategies.

He was the Managing Director of a global logistics provider with network in UK, USA and Australiasia. Held various contractual senior positions as Country Manager of Esprit Shipping (HK), Sales Director with Karl Schroff Associates (US) and Business Development Manager with Port Cargo International (UK). Associated with Cambridge International College as their Training Consultant, Program Examiner with Durham Logistics College and Resident Consultant with TPL Global Chains Management.

He has been involved in corporate training and executives development since 2002 for national corporation ( DRB,TNB, MAHB, etc) multinational companies (Mitsubishi Corp, British American Tobacco, Alstom Power, etc) market leaders (Goodyear, Hitachi, Siemens, etc) academy of learning and development (OCBC Trade Academy, Boustead Naval Academy, etc). His embassy clientele includes trade divisions of Nigerian Embassy, Sudan Embassy and Royal Thai Embassy in Kuala Lumpur. He has developed Shipping programs for Institute Technology Multimedia, Logistics program for Sentral City Institute, Freight management program for PSNB and Open University Malaysia. Developed post graduate courses in Supply Chain Management for Camden University and Export Management for Metropolitan University organized from Kuala Lumpur.

Course Fee
(Course fee is inclusive of 2 tea breaks, lunch, course material,Certificate of Attendance)
1 person ~ RM 1431 / pax
2 persons or more ~ RM 1325 / pax
(Course fee is inclusive of 2 tea breaks, lunch, course material, Certificate of Attendance and 6 % Service Tax )
Terms & Conditions:
1. Registration & Fees Policy
Registration is confirmed once registration form is received via fax/email/mail. All Payments/Undertaking Letters/Local Order (LO)/Letter of Approval must be made available and presented prior to the course.
2. Cancellation Policy
Any cancellation must be received in writing within 5 working days prior to the event else 30% payment will be imposed. Any no-show by registered delegates will be liable for full payment of the program fees.
3. Disclaimer & Program Changes Policy
Scientia Training Sdn Bhd reserves the right to amend or cancel the event due to circumstances beyond its control. We reserved the right to modify the advertised topics or course timing whenever necessary.
1. Fax 03-6207 6727
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