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Message INCLUDES 500 + PRACTICE MCQS AND SIMULATION INCOTERMS2020COMMON LCFIELDCOMMON LCDOCUMENTSINTERVIEWTRADE FINANCEBASICSTRADE FINANCEUCP 00 MCQ ISBP 745 MCQ URR 725 MCQ ISP 98 MCQ E-UCP MCQBILL OF LADINGCERT. OF ORIGININSURANCEDRAFT INVOICEGET READY FOR CDCS IN 100 DAYSC.D.C.SC.D.C.SREFRESHER DIGESTREFRESHER DIGESTCURATED BY SUNIL MUDHANUR#gethelpforCDCSSTUDY PLAN | MATERIALS | MENTORING

INDEX BASICS OF TRADE FINANCE 1.Methods of International PaymentA Typical LC Process Common LC Fields Types of SWIFT Messages KEY ITEMS in LC Types of LCParties in LC TransactionSAMPLE EXPORT DOCUMENTS 2.INVOICE REFRESHER 3.DRAFT REFRESHER 4.BILL OF LADING REFRESHER 5.INSURANCE REFRESHER6.INCOTERMS 2020 REFRESHER7.INDEXR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /EDITORS NOTEWe have gathered extensive information from various sources, including both on and offlineresources, to help simplify complex trade finance topics. We have tried to obtain permissionfrom the original writers of these resources wherever possible. However, for certain articles,we have not received a response from the authors regarding reprint permission. If you havesubmitted any work, and we haven't received your consent, please reach out to us. Provideus with the necessary source information to give you credit and reprint your work.Please feel free to email me at sunilbytes@gmail.com if you have any queries or commentsregarding these refresher series These materials serve as a refresher for our trainees. To gain a better understanding, werecommend reading relevant ICC sources and publications.Version. 01

GET READY FOR CDCS IN 100 DAYSCUSTOM STUDY PLANSTUDY RESOURCES ANDMENTORINGDayTopicsParticularsPART - 01 : BASICS1BASICSOverview of Trade Finance2BASICSMethods of Payments3BASICSLC Cycle | Types of LC4BASICSMT 7005BASICSMT 700 | Cases6Topic 20 Features and conditions of DCS7Topic 04DCs | Methods of settlement8Topic 07Issuing a documentary credit9Topic 19Transferable, B2B DC and AOP10BASICSIncoterms 202011BASICSIncoterms MCQ 12BASICSSWIFT MT7 Series13BASICSDraft14BASICSInvoice15BASICSBL16BASICSAWB17BASICSROAD & RAIL18BASICSInsurance19BASICSCOO20BASICSCommon Export Docs21BASICSRandom Interview QuestionsPART - 02 : UCP 60022UCP 600Read/refresh UCP 60023UCP 600Read/refresh UCP 60024UCP 600Read/refresh UCP 60025UCP 600FAQ on Documentary credit26UCP 600FAQ on Documentary credit27UCP 600Practice MCQ28UCP 600Practice MCQ29UCP 600Practice MCQ30UCP 600Practice MCQ31UCP 600Practice MCQ32UCP 600Practice MCQ33UCP 600Practice MCQ34UCP 600Practice MCQ - advising

GET READY FOR CDCS IN 100 DAYSCUSTOM STUDY PLANSTUDY RESOURCES ANDMENTORINGDayTopicsParticularsPART - 02 : UCP 60035UCP 600Practice MCQ - Issuance36UCP 600Practice MCQ - Confirmation37UCP 600Practice MCQ - Transfer LC38UCP 600Practice MCQ - Refusal39Topic 17 Honour or negotiation40Topic 18Refusing documentsPART - 03 : ISBP41Topic 13Examining documents42Topic 14Examining transport documents43ISPBSTUDY RULES44ISPBSTUDY RULES45ISPBSTUDY RULES46ISPBPractice MCQ47ISPBPractice MCQ48ISPBPractice MCQ49ISPBPractice MCQ - Invoice50ISPBPractice MCQ - Draft51ISPBPractice MCQ - COO52ISPBPractice MCQ - BL53ISPBPractice MCQ - AWB54ISPBPractice MCQ - Insurance55T/FTrue/False56T/FTrue/False57T/FTrue/False58T/FTrue/False59T/FTrue/False60T/FTrue/False

GET READY FOR CDCS IN 100 DAYSCUSTOM STUDY PLANSTUDY RESOURCES ANDMENTORINGDayTopicsParticularsPART - 04 : URR | EUCP | ISP61URR 725READ / Refresh URR62URR 725OPED QUESTIONS63URR 725Practice MCQ64eUCPREAD / Refresh eUCP65eUCPOPED QUESTIONS66eUCPPractice MCQ67ISP 98READ / Refresh Rules68ISP 98READ / Refresh Rul69ISP 98OPED QUESTIONS70ISP 98OPED QUESTIONS71ISP 98Practice MCQREVISION AND PRACTICE72Topic 24 Dispute resolution73Topic 25Overriding considerations74SimulationsPractice Simulations75SimulationsPractice Simulations76SimulationsPractice Simulations77SimulationsPractice Simulations78SimulationsPractice Simulations79SimulationsPractice Simulations80REVISION UCP 60081REVISION UCP 60082REVISION ISBP 82183REVISION ISBP 82184REVISION URR 72585REVISION INCOTERMS 202086REVISION ISP9887REVISION ISP9888REVISION eUCP V 2.189PAPER - 1PRACTICE 90PAPER - 1PRACTICE 91PAPER - 1PRACTICE

BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /UCP 600 MCQ ISBP 745 MCQ URR 725 MCQ ISP 98 MCQ PRACTICE MCQPW - GOALCDCS23TOPICWISE PRACTICE MCQS2INTERVIEW TRADE FINANCE PROFILES3LC CASES AND SIMULATIONS1EUCP MCQ TRUE OR FALSE QUESTIONS4

BASICS - LETTER OF CREDITMETHODS OF PAYMENTWHAT IS INTERNATIONAL TRADEInternational trade is the exchange of capital, goods, and services acrossinternational borders or territories, in other words, imports, and exports.International trade consists of goods and services moving in two directions.Imports - flowing into a country from aboard, Exports - flowing out of acountry and sold overseasFEW RISKSINTERNATIONAL TRADESome major risks involved in international trade include CURRENCY FLUCTUATION RISKLEGAL AND REGULATORY RISK COUNTRY RISKPOLITICAL RISKS CREDIT RISKSThere are several ways to mitigate credit risk in international trade,including:Obtaining credit insurance or guarantees from third-party providers Using letters of credit as a payment method that provides security R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

METHODS OF PAYMENTPayment in Advance Payment in Advance / Cash-in-advance is the most secure methodof payment for the exporter because the importer pays the full or asignificant amount of the payment before the goods are shippedOpen Account An open account transaction is a sale where the goods are shippedand delivered before payment is due, which in International sales istypically in 30, 60 or 90 days. It is one of the most advantageousoptions to the importer in terms of cash flow and cost, but it isconsequently one of the highest risk options for an exporterDocumentary Collection In a Documentary Collections transaction, the exporter's and theimporter's banks facilitate the export sale by exchanging shippingdocuments for payment. However, the banks do not verify that thedocuments are accurate and do not guarantee payment as they dowith Letters of CreditLetter of Credit A letter of credit is essentially a financial contract between a bank,a bank's customer, and a beneficiary. Generally issued by animporter’s bank, the letter of credit guarantees the beneficiary willbe paid once the conditions of the letter of credit have been met.BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Risk is spread between exporter and importer,provided that all terms and conditions specifiedin are complied withMETHODS OF PAYMENTLetter of Credit A letter of credit is essentially a financial contract between a bank,a bank's customer, and a beneficiary. Generally issued by animporter’s bank, the letter of credit guarantees the beneficiary willbe paid once the conditions of the letter of credit have been met.BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Open Account An open account transaction is a sale where the goods are shippedand delivered before payment is due, which in international sales istypically in 30, 60 or 90 days. It is one of the most advantageousoptions to the importer in terms of cash flow and cost, but it isconsequently one of the highest risk options for an exporterMETHODS OF PAYMENTBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Payment in Advance Payment in Advance / Cash-in-advance is the most secure methodof payment for the exporter because the importer pays the full or asignificant amount of the payment before the goods are shippedMETHODS OF PAYMENTBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Seller and Buyer agree salescontract – with payment to bemade under LC.01(a&b) Documents arechecked. If they are in order,payment is made anddocuments are forwarded toIssuing Bank07Issuing bank checks thedocuments and honor itsobligation 08Documents are releasedagainst payment from Buyer 09Buyer uses documents toobtain the consignment10Buyer requests Issuing Bank toissue the LC 02LC issued and sent to Seller’slocal bank (known as AdvisingBank).03Advising Bank examines LCand informs beneficiary 04Seller ships goods to Buyer.05Seller presents documentsunder LC to Advising Bank/Nominated Bank061.Sales contract SIMPLE LC PROCESS5.Goods dispatched2.LC Application 9.Payment/Docs delivered 3.DC sent to Advising bank4.DC Advised 6.Documentspresented 8. Payment from issuing bank7(a). Docs sent to issuing bank7(b).Payment tobeneficiaryBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FIELDSBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

BASICS - LETTER OF CREDITSWIFT MESSAGE TYPESMT 7XX CATEGORIESR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TYPES OF LCClean credit & Documentary Credit1Irrevocable documentary credit2Confirmed letter of credit 3Red clause letter of credit 45Revolving letter of credit (LC)678Back-to-back (counter) documentary credit910Ever green /annually renewable LCsGreen clause letter of credit Standby letter of creditTransfer LCBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

CLEAN CREDITClean credit is opened by a banker under which a person abroad may drawbills upon the banker, the banker undertaking to accept the bills if drawn inaccordance with the conditions in the credit. It is called ‘clean’ because thebills have no documents attached. Such credit is granted only to firms of thehighest standing, or against securities.DOCUMENTARY CREDITA documentary letter of credit is one which specifies certain terms andconditions to be satisfied in respect of documents of title to goods and otherdocuments required together with the bill(s) of exchange if required to bedrawn under a letter of credit.CONFIRMED LETTER OF CREDITA confirmed Letter of Credit is a Letter of Credit to which another bank(bank other than the issuing bank) has added its confirmation. This is to say, in a Confirmed Letter of Credit the beneficiary will have afirm undertaking of not only the bank issuing the credit, but also ofconfirming bank. The bank which adds its confirmation is called aconfirming bank and it becomes a party to the contract of LC. BASICS - LETTER OF CREDITTYPES OF LCR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TYPES OF LCRED CLAUSE LETTER OF CREDITAlso known as anticipatory credits. A letter of credit that contains a clause(traditionally printed in red) authorizing the nominated bank to makeadvances to the seller before shipment/presentation of documents. It is generally of value to middlemen and dealers in areas of commerce thatrequire a form of pre-financing and where the buyer would be willing tomake special concessions of this nature. GREEN CLAUSE LETTER OF CREDITGreen Clause Letters are an extension of the Red Cluse LC, as it enablesthe advance of not only the purchase of raw materials, processing, andpackaging of goods but it also takes pre-shipment warehousing at the portof origin and insurance into account.The bank that is issuing the Letter requires title documents in order toadvance any payments. These documents are typically proof of warehousestatus.REVOLVING LETTER OF CREDIT (LC)A revolving letter of credit is a special letter of credit type, which is structuredin a way so that it revolves either in value or in time covering multiple-shipments over a long period of time under a single letter of creditRevolving letter of credit: Used for regular shipments of the samecommodity between the same exporter and importer . The credit must statethat it is a revolving letter of credit BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TRANSFERABLE LETTER OF CREDITA Transferable Letter of Credit (LC) is a documentary credit underwhich the Beneficiary (first Beneficiary) may request the bankspecifically authorized in the credit to transfer the credit, available inwhole or part, to one or more secondary Beneficiary(ies). The transferred credit must accurately reflect the terms andconditions of the credit. except the following, five times can bereduced or curtailed.1. The amount of the credit2. Prices quoted3. The expiry date4. Latest shipment date and5. Last date for presentationIncase transferable DC calls for insurance, then the percentage forwhich insurance cover must be effected may be increased to providethe amount of cover stipulated in the credit or these articles TYPES OF LCBACK TO BACK LCA new letter of credit opened in favor of another beneficiary on the basisof an already existing one, not a transferable letter of credit. This type ofletter of credit is used for trade intermediaries to open a second credit infavour of a supplier.BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TYPES OF LCSTANDBY BY LETTER OF CREDITA Standby Letter of Credit (SBLC ) is a guarantee that is made by abank/ENTITY on behalf of a client, which ensures payment will be made evenif the client cannot fulfill the payment. It is a payment of last resort from thebank, and ideally, is never meant to be used.EVER GREEN LETTER OF CREDITAlso known as an automatic extension letter of credit. A letter of creditthat extends automatically at the end of its term. In most cases evergreenletters of credit are standby letters of credit, which commonly have aninitial term of one year. Cancellation and amendment can be doneprovided notice is given by the issuer to the beneficiary on, or before, astipulated time in advance of the current expiry.BASICS - LETTER OF CREDITTYPES STANDBY BY LETTER OF CREDITPERFORMANCE STANDBY ADVANCE PAYMENTSTANDBY BID-BOND,/TENDER STANDBY COUNTER-STANDBY FINANCIAL STANDBY INSURANCE STANDBY COMMERCIAL STANDBY DIRECT-PAYSTANDBY R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TYPES OF SBLCPERFORMANCE STANDBY ¨Banks issue a Performance Standby LC on behalf of a service contractorwho is awarded a contract from a department or company. The servicecontractor must meet all the contract's terms and conditions effectively. Ifthe customer fails to fulfill the contract's obligations wholly or partly, thebank must compensate the applicant's financial liability as mutually agreedin the Performance Standby LC. This type of Standby LC is usually issued fora certain percentage of the contract amount.ADVANCE PAYMENT STANDBY ¨A standby advance payment is issued either on behalf of a supplier of rawmaterials/finished goods or on behalf of a contractor for the execution of acontract when they receive the advance payment. In case the supplier failsto fulfill any of the terms of the contract for the supply of goods or theexecution of the contract, the bank will pay back the amount of advancepayment that was received by the supplier.BID-BOND/TENDER STANDBY A bid bond stand by LC is issued to the effect that bidder would notwithdraw the bid before the expiry of bid/tender period or in case thecontract is awarded to bidder that he would comply with the terms of thetender and enter into contract. Bid bond standby LC is usually issued forpercentage of the contract amount.A FINANCIAL STANDBY A financial standby supports an obligation to pay money, including anyinstrument evidencing an obligation to repay borrowed money.BASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

TYPES OF SBLCCOUNTER STANDBY A counter standby LC, also known as a backstop or protective standby, is afinancial arrangement where one country's bank requests another country'sbank to issue a standby for their local projects. The bank issuing the counterstandby LC is responsible for reimbursing the financial liability of the issuingbank if the buyer fails to fulfill their obligationINSURANCE STANDBY An insurance standby supports an insurance or reinsurance obligation ofthe applicant.A COMMERCIAL STANDBY A commercial standby supports the obligations of an applicant to pay forgoods or services in the event of non-payment by other methodsA DIRECT-PAY STANDBY In Direct Pay Standby the banks undertake to pay the beneficiary ondemand up to the maximum amount stated in the LC on passage ofspecified period of time. Direct Pay Standby is irrevocable, the independentobligation of the issuer without any scope for dispute from the buyer/applicantBASICS - LETTER OF CREDITR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

ISSUING BANKthe Bank which issues the credit and undertakes to make the payment onbehalf of the applicant as per terms of the L/C. As per UCP 600 Issuing bankmeans the bank that issues a credit at the request of an applicant or on itsown behalf.APPLICANT A letter of credit is opened by the issuing bank as per the applicant’srequest. As per UCP 600 Applicant means the party on whose request thecredit is issuedBASICS - LETTER OF CREDITADVISING BANK An advising bank acts as the agent of the issuing bank. The function of theadvising bank is to take reasonable care to verify the apparent authenticityof credits received and then accurately transmit them to their beneficiaries.As per UCP 600, Advising bank means the bank that advises the credit atthe request of the issuing bank.BENEFICIARYIn a letter of credit context, generally the exporter-seller; the one on whosebehalf the letter of credit is opened by the applicant (the importer-buyer)the party to whom the L/C is opened, generally the exporter-seller. As perUCP 600Beneficiary means the party in whose favor a credit is issuedPARTIES IN LC TRANSACTIONIR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

PARTIES IN LC TRANSACTIONIREIMBURSING BANKBank authorised to honour the reimbursement claim made by the paying,accepting or negotiating bank. It is normally the bank with which IssuingBank has Nostro Account from which the payment is made to the nominatedbank.CONFIRMING BANKthe bank which adds its guarantee to the LC opened by another Bank andthereby undertakes responsibility for payment/ acceptance /negotiation/incurring deferred payment under the credit in addition to that of theIssuing Bank. As per UCP 600,Confirming bank means the bank that adds itsconfirmation to a credit upon the issuing bank's authorization or requestBASICS - LETTER OF CREDITNOMINATED BANKA Bank in the exporter’s country which is specifically authorized by theIssuing Bank to receive, negotiate, etc., the documents and pays the amountto the exporter under the LC. As per UCP 600,Nominated Bank means thebank with which the credit is available or any bank in the case of a creditavailable with any bank.TRANSFERRING BANKIn a transferable LC, the 1st Beneficiary may request the nominated bank totransfer the LC in favor of one or more second beneficiaries. Such a bank iscalled Transferring Bank. In the case of a freely negotiable credit, the bankspecifically authorized in the LC as a Transferring Bank, can transfer the LC.As per UCP 600, Transferring bank means a nominated bank that transfersthe credit or, in a credit available with any bank, a bank that is specificallyauthorized by the issuing bank to transfer and that transfers the credit. Anissuing bank may be a transferring bank.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

CONTACT :00973-33622644TRAIN I NG C A L E N D A R F O R 2 0 2 3 - 2 4 | C L A S S E S O N L Y O N ( S A T - S U N )3 Batches a Year Specific Topics on each month.FOR TRADE FINANCE TRAINING | RECRUTIMENTSIGN UP FOR YEARLONG LEARNINGFEES V AL I DI T Y F O R A Y E A R *WH Y C H OO S E U S :TRAINED OVER 100STUDENTSFEE VALIDITY FOR AYEARPROFESSIONALTRAINERSFREE JOB ALERTS /REFERRALAFFORDABLE FEE/EASY INSTALMENTSPASSIVE LEARNINGTHROUGH APP/WEBBATCH # 11 : JULY- OCT BATCH # 12 : NOV- FEB BATCH # 13 :MAR- JUNEhttps://www.tradesquare.info/trainingC. D . C . S T R A I N I N GIN Q UI R I E SJULUCP 600LC DOCUMENTSUCP 600 Q&A DISCUSSIONCDCS EXAM SCHEDULECOMPREHEND ISBP & URRLEARN BASICS TRADE FINANCEUNDERSTAND UCP 600ACQUAINT ISP & EUCPTRIAL CLASSESBASICS WALKTHROUGHLC CYCLE |TYPES OF LCSAMPLE LC - MT 700INCOTERMS 2020ISBP 745URR 725ISBP Q&A DISCUSSIONURR Q&A DISCUSSIONISP 98EUCP V.2ISP 98 Q&A DISCUSSIONSIMULATIONSJULNOV MARAUGDEC APRSEPTJAN MAYOCTFEB JUNE

GET HELP FORCDCSPrepared By :Sunil MudhanurCLASS NOTES SERIESJUN 2023LC REFRESHERCOMMON LC FEILDS

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

COMMON LC FEILDSR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GET HELP FORCDCSPrepared By :Sunil MudhanurINVOICEREFRESHER GUIDECLASS NOTES SERIESJUN 2023Types of invoiceSample Invoice Key Items in Invoice Doc Exam Checklist Invoice Common DiscrepanciesInvoice BytesTrue / False Questions

TYPES OF INVOICETypes of InvoicesConsularInvoiceA consular invoice is a document certifying a shipmentof goods and shows information such as the consignor,consignee, and value of the shipment. Generally, aconsularinvoicecan be obtained through a consularrepresentative of the destination country and must becertified by the consul of the country of destination,who will stamp and authorize the invoice.Pro FormaInvoice A pro forma invoice is a preliminarybill of salesent tobuyers in advance of a shipment or delivery of goods.The invoice will typically describe thepurchased itemsandother important information, such as the shippingweight and transport charges.Pro forma, Latin for “as amatter of form” or “for the sake of form,”invoices oftencome into play with international transactions,especially for customs purposes on imports .. CustomsInvoiceA customs invoice is a document that travels with yourparcel and contains information about the items insideyour parcel. The customs invoice is required forcustoms clearance, and your shipment can’t leave thecountry without one. If you are sending a parcel to acountryoutside of the EU, you must fill out a customsinvoice that details every item you are exporting.INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

INVOICE REFRESHERSAMPLE INVOICER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /05KEY ITEMS IN EXPORT INVOICECurrency in which transactionwill be madeThe date on which the invoicewas filled out.Performa invoice referencenumbername and address of theshipper, and/or seller, name and address of the buyer, Pricing and quantities of theshipmentMethod of payment | Shipmentterms The No of packages, marks,weight, and measures.Country of origin notation andthe HS Code authorised Signature - stamps12345678910INVOICE REFRESHER

01020304DOC EXAMINATIONCHECKLIST -INVOICECheck is required number of originals and copies of invoicepresentedInvoice to be issued by beneficiary indicated unlessotherwise stipulated in LC.Check for the Beneficiary’s name and address (at least thecountry must be the same) on invoice matches to that onLC.Applicant’s name and address (at least the country must bethe same) on commercial invoice consistent with LC.05Check is required number of originals and copies of invoicepresented.06Ensure the description of the goods on the commercialinvoice must correspond with LC.07Unit prices and quantities on commercial invoices same asLC.08Calculations and extensions are correct on the commercialinvoice.09The calculation total on the commercial invoice does notexceed the LC balance.10The amount on the commercial invoice matches the amounton the draft. INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

11121314DOC EXAMINATIONCHECKLIST -INVOICECommercial Invoice amount covers complete shipment ofmerchandise (when LC prohibits partial shipments) and iswithin the toleranceIncoterms commercial invoice consistent with those on theeLCCommercial Invoice amount covers complete shipment ofmerchandise (when LC prohibits partial shipments) and iswithin the toleranceWhen LC permits partial shipments, invoice value isproportionate to partial shipment.15Quantity of merchandise, weights and measurements oncommercial invoice are consistent with LC and otherdocuments16Check if LC calls for singed and date invoice.17Check if invoice indicates an over shipment,18Check if invoice covers goods not covered by LC. Includingfree samples and promotional items19Commercial invoice is legalized, notarized or visaed, ifrequired.20Shipping marks and numbers, if shown, are consistent withthose appearing on the transport documents and any otherdocument on which they appear.INVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Buyer and/or seller name and/or not in accordance with the letterof creditProforma or similar are presentedInstead of a Commercial Invoice The invoice Shows Merchandisenot Called for in the Letter ofCredit Commercial Invoice Not Issued bythe BeneficiaryInvoice evidence different naturegoods vs called in the creditinvoice shows short shipment orover shipmentrequired legalization not donefrom a stated entityzero value items supplied notcalled in the LCAny certifications as required byDC are not stated or incorrectlystatedzero value (FOC) items suppliednot called in the LCChange in beneficiary's legal nameas per the creditNot signed, if so required by thedocumentary credit.COMMON DISCREPANCIESINVOICE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

When it comes to international trade,invoices are a crucial component of theprocess. Here are some important points tokeep in mind regarding invoices from UCP600 and ISBP 745:The invoice must be issued by thebeneficiary (or second beneficiary incase of a transfer LC).The invoice does not need to be signedor dated.The invoice must be made out in thename of the applicant (or firstbeneficiary in case of a transfer LC).The invoice must be in the samecurrency as the LC.The invoice must indicate the value ofthe goods shipped or delivered, orservices or performance provided.The invoice must indicate unit prices, asstated in the credit.The invoice may indicate any discount ordeduction required by the credit.The invoice may indicate a deduction ofany discount or any advance payment ifany received from applicant.The invoice can be issued for more thanthe LC amount. However, the honor ornegotiation should not exceed thepermitted LC amount.The description of goods and servicesmust correspond with the LC. However,the goods and services cannot be ofdifferent nature, classification, orcategory. The details need not beconcentrated at certain place.The invoiced amount or invoicedquantity can show a default tolerance of+/- 5% quantity and -5% in amount (note:quantity should not be in numbers orpieces).Where words like "about" or"approximately" are used in connectionwith amount/quantity/unit price, itshould be interpreted as an allowance oftolerance of +/-10% to which they refer.(Beneficiary can look these details in 45Aor 47A).The invoice should not be titled as"provisional" or "professional" etc. Aninvoice issued for tax purpose isacceptable.Goods description in invoice showingadditional details would not make itdiscrepant.When the LC states Incoterms and itsversion as a part of Goods Description,the Invoice should reflect the same.(Note: When the LC states Incoterms +Version + Place + Country, the Invoiceshowing just Incoterms + Version + Placewithout stating country is acceptable.)An invoice showing charges andadditional costs incurred in relation withIncoterms is acceptable.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INVOICE REFRESHER

The invoice should have a uniquenumber. When it is issued in multiplepages, the page numbers should bemarked to identify its completeness.The applicant's full name and countryshould correspond with the LC.Weight, measurement, marks or anyother details shown in the invoice shouldbe consistent with other documentscalled in the LC.When the beneficiary's legal namechanges in the course of the transaction,the invoice showing the new legal nameproviding its former name as stated inthe LC is acceptable.The invoice should not show any goodsor services which are not stated in theLC, such as samples, FOC, orpromotional items.Any corrections to the invoice must beauthenticated by the issuer. When thedocument is certified/visaed/legalizedby multiple entities, the authenticationof correction by any one of such entitiesis acceptable.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INVOICE REFRESHER

GET HELP FORCDCSPrepared By :Sunil MudhanurDRAFTREFRESHER GUIDECLASS NOTES SERIESJUN 2023Introduction Sample DraftImportant NotesLC CasesCommon DiscrepanciesQuick BYTESDraft True or False

DRAFT INTRODUCTIONIt is an instrument unconditional order signed by the makerdirecting the certain party to make the payment of a certain amountto certain party or the bearer of the instrument.A bill of exchange should be:An unconditional order in writingAddressed by one person (drawer) to another (Drawee)Signed by the person giving itIt requires that the person pay the amount on demandor at a fixed or determinable future timeA sum certain in moneyTo or to the order of a specified person or tobearer (payee)DRAFT REFRESHER02R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /ADVANTAGES OF BILL OF EXCHANGELegal Document- It is a legal document, and if the draweefails to make the payment, it will be easier for the drawer torecover the amount legally.Discounting Facility- In cases where the drawer is inimmediate need of money, the bill can be converted intocash by discounting it from a bank by paying some nominalcharges.Endorsement Possible- This bill of exchange can beexchanged from one individual to another for theadjustment of the debt

PARTIES OF BILL OF EXCHANGE: (1) Drawer:The drawer is the maker of a bill of exchange.The bill is signed by the Drawer.A creditor who is entitled to receive payment from the debtor can draw abill of exchange.(2) Drawee:Drawee is the person upon whom the bill of exchange is drawn.Drawee is the debtor who has to pay the money to the drawer.He is also known as ‘Acceptor’.(3) Payee:The payee is the person to whom payment has to be made.The payee may be the drawer himself or a third party.DRAFT REFRESHERSAMPLE DRAFT03R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

KEY ITEMS IN DRAFTDraft reference Number1Date of the draft2Amount in wards and in figures 3Maturity date45Drawer information 67Drawee infomation8Payee details 910Endorsement detailsLC DetailsAny other inforDRAFT REFRESHER04R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

01020304DOC EXAMINATIONCHECKLIST -DRAFTCheck Draft received relates to documents being examinedCheck if the Draft is drawn under correct LC.Check if the Draft is dated. Drawee and payee on draft areas required per LCDraft is signed by beneficiary (or by a second beneficiary ifdocuments under transfer).05Check if the Tenor and maturity of draft are mentionedclearly identifiable on face06Correctly stated "SIGHT" or "USANCE" in accordance withLC terms.07Verify the LC number, date of issuance, issuing bank name,drawee bank name on draft match LC details08Check if Draft amount exceed LC balance.09Both amounts in same currency as stipulated in LC.10Draft amount agrees with invoice amount, unless otherwisementioned in LC11Check for any corrections, if there are any should beauthenticated if LC permitsDRAFT REFRESHER05R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

The tenor stated on a draft is to be inaccordance with the terms of the credit.The tenor be possible to establish thematurity date from the data in the draftitselfThe onboard date is deemed the bill oflading date even when the onboard dateis prior to or later than the date ofissuance of the lading bill. The words "from" and "after" when usedto determine the maturity date, thematurity date commences the dayfollowing the document's date. Transshipment case. Say shipmenteffected within the permittedgeographical range when BL shows morethan one onboard notation. The earliestof these dates are to be used for thecalculation of the maturity date.Multiple loading points. Say shipment ofgoods on the same vessel from morethan one port within a permittedgeographical range and shows more thanone dated on board notations—the latestof these dates to be used to calculatethe maturity date. Multiple BLs presented with differentdates. The onboard date of the latest billof lading will be used for the calculationof the maturity date.The maturity date for usance bills undercomplying presentation. The maturitydate will be XX days after thepresentation to the bank on which thedraft is drawn.The maturity date for Usance bills undernon-complying presentation. a)When the drawer bank has notprovided a refusal notice- the maturitydate will be XX days after the day ofpresentation to it.b)when the drawee bank is the issuingbank, and it has provided a notice ofrefusal at the latest XX days after thedate the issuing bank accepts the waiverof the applicant.c)When the drawee bank is a bank otherthan the issuing bank and has providedthe notice of refusal, it does not want toaccept the waiver. Then The draweebank is to advise or confirm the maturitydate to the presenter.d)Payment is to be made in immediatelyavailable funds on the due date at theplace where the draft or documents arepayable if the due date falls on a non-banking day. The payment should beeffected immediately on a banking dayDraft needs are signed by thebeneficiary and to state the date ofissuanceIf the beneficiary's name has changedafter the issuance of the LC, the draftmay indicate the entity name and(formerly known as.. as per LC details).When LC indicates drawee details inswift, the draft can either show swiftcodes or bank names.06R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /DRAFT REFRESHERHERE ARE SOME IMPORTANT POINTS TO KEEP IN MIND REGARDING DRAFTS AND ISBP 745:

When LC is available by negotiation withthe nominated bank, the draft should bedrawn on another bank than thenominated one.When LC is available by acceptance withany bank, the drafts are to be drawn on abank that agrees to accept the draft.Under usance LC. When the draft isdrawn on a nominated bankIf the nominated bank decides not to acton the nomination, the beneficiary mayrevise the draft on confirming bank, ifany, or request the dox to be forwardedto confirming bank as presented.Present the dox to any other bank whichis willing to accept a draft drawn on it.(application when LC is available withany bank)Ask the bank to forward the docs toIssuin Bank as presented with or withoutchanging the draft.Under usance LC. when the draft is theconfirming bank. When the dox are discrepant, theconfirming bank decides not to reinstateits confirmation. The beneficiary may askthe bank to fwd the docs to IB aspresented with or without changing thedraft. When the amount in words and figuresconflict, the amount in words is to beexamined as the amount demanded.Any corrections in the draft - to beproperly authenticated & following LCstipulations.An LC must not be issued available by adraft drawn on the applicant.Under transferable LC The firstbeneficiary has the right to substitute itsown invoice and draft, on first demandonly07R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /DRAFT REFRESHER

Drawn on the wrong party.Sight draft presented instead oftime draftNot properly signed and/orendorsed.Commercial Invoice Not Issued bythe BeneficiaryLetter of credit number andissuing bank’s name are missingamount differs from what isindicated on invoice.Maturity of the bill calculatedincorrectThe amount drawn exceeds thecredit amountCOMMON DISCREPANCIESWhen documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." DRAFT REFRESHER08R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GETFORCDCSHEL PBILL OF EXCHANGETRUE FALSE1Bill of exchange is required in case the DC is available by acceptance and documents sentagainst acceptance2For a DC tenor 60 days after the bill of lading date, and the date of the bill of lading is 14 May2023, the draft indicating tenor as 60 days after bill of lading date 14 May 2023 is acceptable3For a DC tenor, 30 days from the BL date, when BL WITH multiple onboard notations withinthe geographical area are given THE LATEST OF THESE dates is to be used for the calculationof the maturity date4When the DC available by acceptance with any bank, the draft is to be drawn on the bank thatagrees to accept the draft and is thereby willing to act on its nomination.5For a DC tenor 30 days from BL date, when more than one set of BL is presented under onedraft the on board date of the LATEST BILL OF LADING will be used for the calculation of thematurity date.6The Draft must show both The amount in words and the amount in figures7when the credit is available by negotiation with a nominated bank, the draft is to be drawn ona bank tha willing act on nominatiom8Any corrections or alterations in the draft issued by beneficiary need not be authenticated 9when the DC is available by ‘deferred payment, though payment is at a time in the future,presentation of a draft is not required.10As per ISPB 745 Financial Documents includes only commercial invoice and bills of exchange 1234567891008R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GET HELP FORCDCSPrepared By :Sunil MudhanurBILL OF LADINGREFRESHER GUIDECLASS NOTES SERIESJUN 2023IntroductionsSample BL Key Items in BL Doc Exam Checklist BL Common DiscrepanciesBL BytesTrue / False Questions

Bills of Lading The document covering the carriage of goods by sea is called abill of lading (B/L or BOL). The B/L is the authentic receipt delivered by a carrier, confirming that thegoods therein specified (markings, types of goods, number of packages,etc.) have been loaded or taken in charge for loading on a designated vesselfor carriage to a specified port.Where a bill of lading issued, the contract between the cargo owner and thecarrier is governed by international conventions and national laws.FUNCTIONS OF BILL OF LADING a cargo receipt of carrier received from a customer: it statesthat the goods described in it have been loaded on a certainship for a certain destinationa document of title (a document proving ownership) of thegoods: it means that the goods can be sold to a new ownerwho upon legal possession of the B/L (holder) is entitled toclaim the goods. The B/L is thus often described as “the keyto warehousean evidence of a transport contract signed by carrier: It isevidence of the existence of a contract of carriage betweencargo owner and carrier, where the carrier commits to carrythe goods from one point to another. INTRODUCTIONBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

SAMPLE BILLS OF LADINGBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

KEY ITEMS IN BILLS OF LADINGShipper’s details1Consignee’s details - straight / to order 2Notify Party 3Signatory details :Carrier’s / Agent / 45678Place of Receipt, Port of Loading, Port ofDischarge, Place of delivery, Final destination910Container Number, Seal Number, Shipping Marks &Numbers, Description of goods, G .W/ CBM etcB/L Number, Vessel Name and Voyage numberTerms and Conditions of CarriageFreight Details Place and Date of Issue, SignatureBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

01020304DOC EXAMINATIONCHECKLIST -BLverift the BL received relates to documents being examined.verify for full set of original B/Ls has been presented,The number of original B/Ls received agrees with LCrequirements.Name of the carrier appears on face of B/L.05Bears signature of issuer and indicates name and capacity,i.e. shipper, carrier, owner, master, or agent.06Any alterations bear authentication.07Consigned to… (name)” or "Negotiable Consigned to theorder of… (name)" B/L presented complies with LC terms08Name and address of "Notify Party" on B/L matches to LC.09B/L properly endorsed by the party entitled on the face ofthe B/L10B/L indicates goods loaded on board (or shipped) on anamed vessel either by:Pre-printed wording on the B/L.By means of a "Shipped On Board" notation. BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

11121314DOC EXAMINATIONCHECKLIST -INSURANCECheck for any dirty clauses, B/L is not freight forwarder NVOCC (Non Vessel OwnerCommon Carrier).Check that incoterms stated in " on B/L matches LCstipulation.Freight charges to correspond with Incoterms stated in thecredit15Port of Loading and Discharge on B/L matches LCspecification.16BL should show Name of vessel on which goods have beenloaded.17B/L does not indicate subject to charter party and containsno indication18B/L to be is consigned as stipulated in LC.19No other merchandise is listed on bill of lading other thanindicated in LC.20Merchandise description, if generic, is consistent with LC.BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

MULTI MODAL BILL OF LADINGA Multimodal Bill of Lading is an international transportdocument covering two or more modes of transport, such asshipping by road and by sea. It is also used as a carriagecontract and receipt that the goods have been received.NON‐NEGOTIABLE SEAWAY BILL¨Sea waybill is a non-negotiable bill of lading, invented by thetransportation industry very recently, to respond to themarket, that demands a more flexible marine transportdocument than a conventional bill of lading. The main advantages of a sea waybill over a traditionalnegotiable bill of lading are its flexibility and ease of use.Importers can clear the goods from customs withoutpresenting at least one original copy of the bill of ladingwhen the sea waybill is selected as a transport document.CHARTER PARTY BILLS OF LADINGThe Charter Party Bill of Lading is a bill of lading that is issuedsubject to the terms and conditions of a charter party. A CPBLis synonymous with commodity or bulk shipment cargoes.Charter party shipment is subject to the signing of a charterparty contract between the owner of the vessel and thecharterer.TYPES OF BLBL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

SHIPPED ON BOARD B/L This is one of the most common forms of B/L. The B/L, whensigned, confirms that the goods are on the vessel and havebeen shipped on board.The Received for shipment B/L may be exchanged orconverted into Shipped B/L or On board B/L when cargoloaded on board of vessel. A Shipped B/L can only be issued when the goods areactually shipped on board.BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /RECEIVED FOR SHIPMENT B/L When the goods are accepted on the quay or in thewarehouse, for shipment, by the shipping agent before theship has arrived,a document called “received for shipment” will be delivered,which represents the goods but which is not a real bill oflading, although the content is exactly the same with oneexception: “received” instead of “shippedR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Does not indicate goods havebeen loaded on boarded orshipped on a named vesselBL not consigned as stipulated inthe credit. defective condition of the goodsand/or packaging.The Bill of Lading covers othermerchandise not called for in thecreditThe Bill of Lading does notindicate the name of the carrier.The Bill of Lading is not properlyendorsedThe Bill of Lading is not properlysigned or authenticatedMerchandise description isinconsistent with that stipulatedin the Letter of Credit.COMMON DISCREPANCIESB/L is “Received for Shipment” thedate of the “On Board” notation isnot within the latest date allowedfor shipmentDoes not indicate the port ofloading/discharge as stipulated inthe creditA full set of original Bill of Lading(s) has not been presentedB/L is “Shipped on Board”, and itis not within the latest dateallowed for shipment.BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

The multimodal transport document(MMTD) must cover the movement ofgoods at least two modes of shipment.The MMTD should not indicate that onlyone mode of transport is used. The modesof transport can be silent.There should be no charter party clause onthe face of the document.The routing of the goods (place + port +port + place) should hint at the type ofmultimodal transport document.The MMTD can be issued by any company,as long as it meets the conditions of Article19 of the UCP 600.If the LC calls for a freight forwardersmultimodal transport document (FF MMTD)or a house multimodal transport document(HMTD), it does not need to be signed asper article 19.The MMTD must indicate the name of thecarrier and identify the carrier as such.If the MMTD is signed by a branch of thecarrier, the same will be treated as signedby the carrier.If an agent signs on behalf of the carrier,the MMTD must state the name of theagent, the capacity in which the agent issigning, and the name of the carrierIf the master or captain signs the MMTD,the signature capacity must be identified as"Master" or "Captain". The name of themaster or captain does not need to bestated.If an agent signs on behalf of the masteror captain, the signature capacity mustbe stated, but the name of the master orcaptain does not need to be stated.The date of issue of the MMTD is treatedas the date of shipment unless there isan onboard notation.If the first leg of the transportation is bysea, an on board notation is required. Inthis case, the provisions of Article 36(b-d) of the UCP 600 will apply.If the LC requires the shipment tocommence from a port, and the portname is stated in the place section of theMMTD, an on board notation is requiredthat states the port of loading.If the LC requires the MMTD to indicatethe place of receipt, dispatch, taking incharge, port of loading, or arrival onboard in a particular country, thecountry name does not need to bespecified.If the LC indicates a geographical rangein the port of loading, the MMTD mustindicate a specific port or place.If the LC requires the shipment to beeffected to a port, the MMTD mustindicate a port in the place of discharge.If the port of discharge is indicated inthe place of discharge field, a notation isrequired indicating the actual port ofdischarge.If the LC indicates a geographical rangein the place of discharge, the MMTDmust indicate a specific port or place.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /MM - BILLS OF LADING - KEY POINTS

The MMTD must indicate the number oforiginals issued.All originals, duplicates, and triplicates aretreated as originals.If the LC requires a straight consignment,the MMTD must not include the prefix "toorder" or any other similar wording.If the MMTD is issued to order or to orderof shipper, an endorsement made byanother entity is acceptable, provided theyare signing on behalf of the entity named inthe MMTD.The MMTD may indicate multiple notifyparties when the LC requires.If the LC does not stipulate a notify party,any party can be named as notify party. Ifthe MMTD mentions the applicant as notifyparty, all the details must be as per the LC.If the LC requires the MMTD to beconsigned to/notify or to the order of theissuing bank or applicant, the MMTD statingonly the name without the address isacceptable.If the LC prohibits partial shipments andmore than one MMTD is presented withinthe geographical range specified in the LC,the set of MMTDs must indicate that theycover the carriage of goods on the samemeans of conveyance and same journeyand that the goods are destined for thesame destination. This will not beconsidered as a partial shipment.If the LC prohibits partial shipments andmore than one MMTD is presented, thelatest date among the MMTDs will be takenfor calculating the maturity date.If the LC allows partial shipments andmore than one MMTD is presented, theearliest date among the MMTDs will betaken for calculating the maturity date.No claused BL = Clean Bills of lading.goods description can be in generalterms when LC requires MMTD to mention thename + address of the delivery agent atthe port of discharge of the finaldestination. the address of the deliveryagent can be anywhere in the world.any corrections in MMTDs can becorrected by carrier/master / or any oftheir agents. Non Negotiable copies of MMTD neednot be required for authentication forany corrections.When LC prohibits additional cost tofreight the MMTD is not to indicate thatcosts additional to the freight have beenor will be incurred.An indication of costs additional tofreight Free In (FI), Free Out (FO), Free Inand Out (FIO), and Free In and OutStowed (FIOS).(demurrage costs) or (detention costs) isnot an indication of costs additional tofreight.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /BL REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GETFORCDCSHEL P1A bill of lading used in a port-to-port shipment credit must be titled as "Marine Bill of Lading" or"Ocean Bill of Lading."2A bill of lading can be issued by any entity other than a carrier or master, as long as it meets therequirements of UCP 600 Article 20.3When a credit allows for "Freight Forwarder's Bill of Lading" or "House Bill of Lading," the issuingentity does not need to indicate its capacity or the name of the carrier.4When a pre-printed "Shipped on Board" bill of lading is presented, the issuance date is consideredthe date of shipment, regardless of any separate on board notation.5When a credit requires a straight bill of lading or consignment to a named entity, the expressions"to order" or "to order of" preceding or following the named entity should be included in the BL6When a credit requires a bill of lading consigned to or to the order of "Issuing Bank" or "Applicant,"the bill of lading should mention their addresses and contact details as stated in the credit7Corrections made on a bill of lading should be authenticated by the carrier, master (captain), ortheir named agents, even if a different agent issued or signed the bill of lading.8when a credit requires a bill of lading to be marked “freight payable at destination”, it may bemarked “freight collect”9Free In (FI), Free Out (FO), Free In and Out (FIO) and Free In and Out Stowed (FIOS). Are fewexamples of indication of costs additional to freight10Demurrage and Detention costs are examples an is an indication of costs additional to freight12345678910BILL OF LADINGTRUE FALSER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GET HELP FORCDCSPrepared By :Sunil MudhanurINSURANCEREFRESHER GUIDECLASS NOTES SERIESJUN 2023IntroductionSample Insurance Key items in Insurance Doc examination - a checklist Common DiscrepanciesImportant Notes /bytes

Marine insurance covers the loss or damage of ships, cargo, terminals,and any transport or cargo by which the property is transferred,acquired, or held between the points of origin and the finaldestination. INSURANCE POLICY An insurance policy is a legal contract between an insurance companyand an individual that outlines the terms and conditions of aninsurance agreement. A policy outlines the type of coverage, theamount of coverage, the cost of the coverage, the duration of thepolicy, and the obligations of both the insurance company and theinsured. AN INSURANCE CERTIFICATE An insurance certificate is adocument that serves as proof ofinsurance coverage, often issuedby the insurance company to theinsured. It provides a summary ofthe policy, including the type ofcoverage and the amount ofcoverage. The certificate also liststhe policyholder's name and theinsurance company's contactinformation.COVER NOTE A cover note is a temporarydocument issued by aninsurance company thatprovides proof of insurancecoverage until a final insurancepolicy can be issued. A covernote is different from acertificate of insurance or aninsurance policy document.INSURANCE REFRESHER INTRODUCTIONR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

INSURANCE REFRESHERSAMPLE INSURANCE DOCYENBTInsurance DcoumentWESTCO INSURANCE COMPANYMILLER LANE - BELFASTInsurance PolicyInsurance Policy No. 1111/20XXOpern cover detailsInsurance Cover Effected Institute Cargo Clauses (A) 'All Risk (Institute Air Cargo Clauses if shipment by air) • Institute War clauses• Institute Strike clausesThe holder of this POLICY is entitled to the above-mentioned insurance cover. For thepurposes of collecting any claims this policy will be accepted as showing that the holder isentitled to the bene- fit of such policy to the extent as set forth herein. In the event of loss ordamage for which the insurance company is presumed to be liable notice must be given toSEC URITO LOSS ADJUSTERS HONG KONG TE I.: 98879987599This policy is not valid unless countersignedby the assured. Counter signed SignatureFor XXXXXXXXXXXXXXXXXXXXXXXDate :XX-XX-XXXXWestco Insurance Company limited Signature Manager and underwriterDate Marks and NumbersGross Weight Net WeightTareInsured Interest (Goods Description)Conveyance Effective date of coverFrom ToWESTCOWESTCOWESTCO R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

KEY ITEMS IN INSURANCEA unique Certificate/ Pocicy Number1Shipment Date - Coverage effective date2Name and address of the Assured (Beneficiary)3Name of the Insurer45Insured Value - and currecy 678Description of Goods910Risk Covered, Average Terms & ConditionsShipping Details - Place of Origin - Final DestinationAny ExlusionsClaims Agent - Claims ProceduresINSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

01020304DOC EXAMINATIONCHECKLIST -INSURANCEIf the LC requires an insurance policy, an insurancecertificate is not to be presented. Vis –a vis is acceptableOriginal and duplicate original of certificate (or policy) arepresented if LC requires insurance document in duplicate.Full SET to be presented - If the insurance documentindicates issue in more than one originalCertificate (or policy) appears on the face to be issued andsigned by insurance company or its agent/underwriter.05Certificate (or policy) is not dated later than the transportdocument06Date on certificate (or policy) is effective prior to or fromthe date of shipment07Certificate (or policy) is properly endorsed, if required08Certificate (or policy) is issued in the currency and amountstipulated in the LC.09Minimum insured for 110% of CIF or CIP value to namedPort of Destination.Note: If the CIF or CIP value can not be determined, bankswill accept as a minimum 110% of the amount for whichpayment, acceptance, or negotiation is requested, or 110%of the gross amount of the invoice, whichever is largerINSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

10121314DOC EXAMINATIONCHECKLIST -INSURANCEMerchandise insured is that described in the LC.Policy (or certificate) is consistent with other documentsand LC.Specific risks (e.g., war, strikes) and/or clauses required inLC are covered. NOTE - "All Risks" statement included if LCrequires all All insurance riders affixed to the insurance document andare cross-referenced and stamped or signed to form part ofdocumentINSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

insurance certificate is presentedwhen credit calls for insurancepolicyUnder insuredAll Originals of Insurance Policieshave not been presented Underinsured.Insurance risks specified in letterof credit not coveredInsurance policy dated later thanthe shipping date.Insurance Policy ShowDifferent Currency than theCommercial InvoiceCorrection/Alteration on theInsurance Policy is notAuthenticated ProperlyDocument Shows thatCover Subject to a Franchise or anExcess when a credit requires theinsurance cover to be irrespectiveof percentageCOMMON DISCREPANCIESWhen documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." Insurance Policy not Issued andsigned by an Insurance Companyor its AgentPolicy or certificate is notcountersigned or endorsedINSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

FRANCHISEA franchise exists when the insurance company is not responsible for theloss which does not exceed an agreed amount, but is responsible for theentire amount of the loss which exceeds the agreed amountSLLOSS /DAMAGEFRANCHISE AMTPAYABLE 19,999.910,000.000.00210,000.0010,000.000.00310,001.0010,000.0010,001.004100,000.0010,000.00100,000.00EXCESSAn excess exists when the insured agrees to be responsible for an agreedamount of loss, and the insurance company is only responsible for theamount over the agreed amount.SLLOSS /DAMAGEEXCESS AMTPAYABLE 19,999.910,000.000.00210,000.0010,000.000.00310,001.0010,000.001.004100,000.0010,000.0090,000.00FRANCHISE VS EXCESS In marine insurance, an agreement whereby the insurer will pay the totalvalue of a loss without regard to any percentage or other calculation.INSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GENERAL AVERAGEGeneral average is a principle of maritime law in which allparties involved in a sea voyage share the losses andexpenses incurred due to unexpected and extraordinaryevents, such as a shipwreck or a jettison of cargo.PARTICULAR AVERAGEParticular average is a type of loss that occurs partially andonly affects a particular vessel, cargo, or other property andis typically covered by insurance. Such losses may includedamage due to fire, collision, lightning, stranding, or otheroccurrences.FEW IMPORTANT TERMSUNDERWRITER / UNDERWRITING An insurance underwriter is someone who manages theinsurance underwriting process. Underwriting is the processinsurers use to determine the risks of insuring business/ aperticular transaction. It involves the insurance companydetermining whether the busineess/ transaction poses anacceptable risk and, if it does, calculating a fair price for thecoverage. INSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

MINIMUM COVER IN INSURANCEREAD MORE: https://www.incotermsexplained.com/incoterms-2020/Institute Cargo Clauses are a component of marine insurance thatwas originally developed by the International Chamber ofCommerce, a body governing businesses across the globe. Theseclauses were first introduced in 1982, but since then have altered inlight of changes in global business, risk and threat levelsINSURANCE REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

INSURANCE REFRESHERAn insurance policy, an insurancecertificate, or a declaration must appearto be issued and signed by an insurancecompany, an underwriter, or theiragents or proxies. The signature of anagent or proxy must indicate theircapacity.When an insurance document indicatesthat more than one document has beenissued, all of the documents must bepresented.An insurance document must notindicate an expiry date for thepresentation of any claims thereunder.Cover notes are not acceptable asinsurance documents.An insurance policy is acceptable in lieuof an insurance certificate ordeclaration.The date of the insurance documentmust be no later than the date ofshipment, or an effective date clausemust be included.The insurance cover must be in the samecurrency as the invoice amount.The minimum cover must be 110% of theCIP value and the clause must be ICC (C).There is no maximum percentage ofinsurance coverage.When the amount of insurance coveragecannot be determined from thedocument, it must be calculated basedon the presentation or negotiation value.The insurance document must indicatethe insured goods and the route oftransportation.The LC must specify the risks to becovered. If the clause is general, such as"usual risks" or "customary risks," thenany insurance document that covers anyrisks is acceptable.If the LC calls for an insurance documentwith "all risks," then an insurancedocument bearing "all risks" isacceptable."All risks" is equivalent to the InstituteCargo Clauses (A) or Institute CargoClauses (Air).Any references to exclusions areacceptable.The insurance document may indicatethat the cover is subject to a franchise orexcess (deductible), except when theinsurance coverage is irrespective ofpercentage.If the issuer is identified as "insurer,"then the insurance document need notindicate the signer's capacity.An insurance document may be issuedon the stationery of an insurance broker,provided it is signed by an insurancecompany, underwriter, or their proxy.Even an insurance broker can sign thedocument as an agent or proxy on behalfof an insurance company.INSURANCE DOCUMENT - KEY POINTS R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

INSURANCE REFRESHERThe insurer must be identifiedsomewhere in the document.Any countersignature clauses must bemet in the document.An insurance document may show thetrading name of the company, providedthe insurer is identified somewhere inthe document.An insurance document may state aclause like "this is covered by multipleinsurers" and be signed by the leadinginsurer on behalf of all.An insurance document need not showall of the names of the insurers if thecover is arranged by multiple insurers. A "warehouse-to-warehouse" or similarclause does not mean that the cover iseffective on or before the date ofshipment.In the absence of a proper date of issue,the countersignature date will bedeemed to be the issuance date.A letter of credit (LC) should not requirean insurance document to be issued "tobearer" or "to order." The LC shouldalways indicate the name of the insuredparty.If the LC requires the insurancedocument to be issued "to order of(named entity)," the document need notindicate "to order" provided that thenamed entity is the payee of the claimsand assignment by endorsement is notexpressly prohibited.Banks do not examine the general termsand conditions in an insurancedocument.An insurance document showing anindication regarding insurance premiumis to be disregarded, unless the clausespecifies that the document is not validunless the premium has been paid.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GETFORCDCSHEL P1An insurance document can be issued and signed only by an insurance company orunderwriter, not by an agent or proxy2An insurance document signed by "John Doe (by proxy) on behalf of AA Insurance Ltd" is anexample of compliance with the guidelines. 3An insurance document indicating that it covers Institute Cargo Clauses (C) can be used as analternative to "all risks" coverage for a credit.4Insurance document indicating coverage as "warehouse-to-warehouse means coverage startsfrom the date of shipment and continues until the goods arrive at the destination .5An insurance document can indicate an expiry date for the presentation of any claims 6An insurance document must always be issued in more than one original.7All originals of an insurance document that indicates it has been issued in more than oneoriginal are required to be presented and signed.8An insurance document can have a clause stating that the insurance is subject to a franchiseor excess, even if the credit requires insurance cover to be irrespective of percentage.9An insurance document may be signed by a single agent on behalf of all insurers if it indicatesthat cover is provided by more than one insurer.10An insurance document covering Institute Cargo Clauses (A) meet the requirement for "allrisks" coverage for air dispatch?12345678910INSURANCE TRUE FALSER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GET HELP FORCDCSPrepared By :Sunil MudhanurINCO TERMS 2020 REFRESHER GUIDECLASS NOTES SERIESJUN 2023

INCOTERMS 2020- REFRESHERINCOTERMSWHAT ARE INCOTERMS ININTERNATIONAL TRADEIncoterms are a set of 11 internationally recognized standards that specify theresponsibilities of both sellers and buyers. Incoterms define who is responsiblefor paying for and handling the cargo, as well as for insurance, documentation,customs clearance, and other logistical tasks.RULES FOR ANY MODE OR MODES OF TRANSPORT EXW - Ex Works (insert place of delivery)1. FCA - Free Carrier (Insert named place of delivery) 2. CPT - Carriage Paid to (insert place of destination) 3. CIP - Carriage and Insurance Paid To (insert place of destination) 4. DAP - Delivered at Place (insert named place of destination) 5. DPU - Delivered at Place Unloaded (insert of place of destination) 6. DDP - Delivered Duty Paid (Insert place of destination).7.RULES FOR SEA AND INLAND WATERWAY TRANSPORT FAS - Free Alongside Ship (insert name of port of loading) 1. FOB - Free on Board (insert named port of loading) 2. CFR - Cost and Freight (insert named port of destination) 3. CIF - Cost Insurance and Freight (insert named port of destination) 4.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Did you know? The seller is not required to load the goods on the buyer's designatedmethod of transport but can do so if they choose. The seller's only requirement is to makethe product available at a selected location, it is the buyer's responsibility to pay for thetransport.R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /INCOTERMSEXW| Ex WorksEXW (INSERT NAMED PLACE OF DELIVERY) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder the EXW shipping term, the seller's responsibility is to make the goods available to thebuyer at the seller's premises (or another named place, such as a warehouse or factory). Thebuyer bears all risks and costs from that point onwards, including loading the goods,transporting them to the destination, and clearing them through customs.Under EXW - Delivery happens and risk transfrred to the buyer -when seller places the se goods at the disposal of the buyer at a namedplace (like a factory or warehouse), and that named place may or maynot be the seller’s premises.THIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTINCOTERMS 2020- REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /FCA| Free CarrierFCA (INSERT NAMED PLACE OF DELIVERY) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUsing the shipping term Free Carrier (FCA), the seller must take responsibility for the exportclearance. In addition, If the place of delivery is at the seller premises, the seller must loadthe goods. If delivery takes place in a different place, the seller is not responsible forunloading.Under FCA- Delivery happens and risk transfrred to the buyer -in one or other of two ways 1.if named place is the seller’s premises, the goods are delivered whenthey are loaded on the means of transport arranged by the buyer.2. if named place is another place, the goods are delivered when, havingbeen loaded on the seller’s means of transport and they reach the namedother place andCOSTSRISKSIf delivery takes place in a different place, the seller is not responsible forunloading.INCOTERMS 2020- REFRESHERDid you know? The most significant change relates to the term Free Carrier (FCA). Underthis term, the buyer can now instruct its carrier to issue a bill of lading with an on-boardnotation to the seller so that they may satisfy the terms of a letter of creditR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /CPT| Carriage Paid ToCPT (INSERT NAMED PLACE OF DESTINATION) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesIn CPT the seller clears the goods for export and delivers to the carrier nominated by theseller at the agreed place of shipment at the origin. At this point, the risk is transferred to thebuyer. The seller is responsible for contracting and paying the main carriage until the agreednamed place of destination. The contract of carriage must specify origin and destination.Under CPT- Delivery happens and risk transfrred to the buyer -when seller hands over the physical possession of the goods to thecarrier contracted by the seller in the manner and at the placeappropriate to the means of transport used. The seller is responsible forcontracting and paying the main carriage until the agreed named place ofdestination. Did you know? When using multiple carriers, risks and costs transfer to the buyer upondelivery to the first carrier.THIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTINCOTERMS 2020- REFRESHERR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /CIP| Carriage and Insurance Paid ToCIP (INSERT NAMED PLACE OF DESTINATION) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder CIP terms, the seller clears the goods for export and is responsible for delivering thegoods to the carrier nominated by the seller. The seller must pay the cost of carriage, but theseller risk ends at the place of shipment. The seller must procure the minimum insuranceuntil the named place of destination. The risk is passed when the goods are received by thefirst carrier.Under CIP- Delivery happens and risk transfrred to the buyer -when seller hands over the physical possession of the goods to thecarrier contracted by the seller in the manner and at the placeappropriate to the means of transport used. The seller is responsible forcontracting and paying the main carriage until the agreed named place ofdestination. INSURANCEINCOTERMS 2020- REFRESHERDid you know? Under the revised term CIP, the seller is now responsible for purchasing ahigher level of insurance coverage—at least 110% of the value of the goods as detailed inClause A of the Institute Cargo Clauses. The insurance requirement hasn't changed for CIF.THIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /DAP| Delivered at PlaceDAP (INSERT NAMED PLACE OF DESTINATION) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesWith the DAP Incoterm, the seller delivers the goods to the agreed place of destination. Theseller assumes all of the risk and cost until the goods are ready to be unloaded at the namedplace at destination. Under DAP- Delivery happens and risk is transferred to the buyer -when the goods are placed at the disposal of the buyer on the arrivingmeans of transport ready for unloading at the named place ofdestination. The seller is not required to unload under DAPINCOTERMS 2020- REFRESHERTHIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

Did you know? The incoterm DPU "Delivered at Place Unloaded" was formally known asDAT for “Delivered at Terminal” prior to 2020 version was released. R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /DPU| Delivered at Place UnloadedDPU (INSERT NAMED PLACE OF DESTINATION) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesIn DPU, Delivery at Place, the seller is responsible for moving the goods from origin until theirdelivery at the disposal place agreed unloaded at the destination. he seller must be confidentto arrange the unloading of goods at the named place.Under DPU- Delivery happens and risk is transferred to the buyer -when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named place of destinationINCOTERMS 2020- REFRESHERTHIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /DDP| Delivered Duty PaidDDP (INSERT NAMED PLACE OF DESTINATION) INCOTERMS® 2020ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesunder DDP Incoterm rule means the seller delivers the goods to the agreed placedestination. Using the DDP Incoterm rule, the seller assumes all cost - including importformalities, and risks until the goods are ready for unloading at named place ofdestination. Under DDP- Delivery happens and risk is transferred to the buyer -when the goods are placed at the disposal of the buyer, cleared forimport on the arriving means of transport ready for unloading at thenamed place of destinationDid you know? The DDP Incoterm rule is the only rule that places the obligation on theseller for import clearance and tax payments and/or import duty.INCOTERMS 2020- REFRESHERTHIS RULE MAY BE USED IRRESPECTIVE OF THE MODE OR MODES OF TRANSPORTR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

FAS| Free Alongside ShipFAS (INSERT NAMED PORT OF SHIPMENT) INCOTERMS® 2020In FAS the seller clears the goods for export and delivers them alongside side the vesselnominated by the buyer at port of origin. This means that the seller is responsible for allcosts and risks to the goods up to point of delivery. This term applies only for ocean orinland waterway ports.ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder FAS- Delivery happens and risk transfrred to the buyer -when the goods are placed alongside the ship / quay /barge nominatedby the buyer at the named port of shipmentDid you know? This Incoterms rule is popular for bulk cargo where the seller has directaccess to the vessel. In general, the FCA Incoterms rule is used when containerizedshipments are delivered to a terminal. INCOTERMS 2020- REFRESHERTHIS RULE IS APPLICABLE FOR SEA AND INLAND WATER WAY TRANSPORT R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

FOB| Free On BoardFOB (INSERT NAMED PORT OF SHIPMENT) INCOTERMS® 2020Using the FOB Incoterm rule, the seller is responsible for the delivery of goods loaded onboard the vessel. The risk and costs are transferred to the buyer as soon as the goodshave been loaded onboard the vessel.ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder FOB- Delivery happens and risk is transferred to the buyer -when the goods on board the vessel nominated by the buyer at thenamed port of shipmentINCOTERMS 2020- REFRESHERTHIS RULE IS APPLICABLE FOR SEA AND INLAND WATER WAY TRANSPORT R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

CFR| Cost and FreightCFR (INSERT NAMED PORT OF DESTINATION) INCOTERMS® 2020Using the CFR Incoterm, the seller covers the cost of freight to the named port ofdestination or place. The risk of loss of or damage is transferred as soon as the goods areloaded onto the vessel. Main transport however is covered by the seller includingcontractual obligations.ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder FOB- Delivery happens and risk is transferred to the buyer -when the goods on board the vessel nominated by the buyer Did you know? CFR - Cost and Freight Incoterm is one of the most commonly usedIncoterms after FCA - Free CarrierINCOTERMS 2020- REFRESHERTHIS RULE IS APPLICABLE FOR SEA AND INLAND WATER WAY TRANSPORT R e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

CIF|Cost Insurance and FreightCIF (INSERT NAMED PORT OF DESTINATION) INCOTERMS® 2020In CIF terms, the seller clears the goods at origin places the cargo on board and pays forinsurance until the port of discharge at the minimum coverage. Even though the sellerpays for insurance during the main carriage, the risk is transferred to the buyer at thetime the goods are on board. ExportformalitiesCOSTS COSTSRISKS RISKSImportformalitiesUnder CIF- Delivery happens and risk is transferred to the buyer -when the goods on board the vessel INSURANCEINCOTERMS 2020- REFRESHERTHIS RULE IS APPLICABLE FOR SEA AND INLAND WATER WAY TRANSPORT Note : Under the CIF Incoterms rule the seller is required to obtain extensive insurancecover complying with Institute Cargo Clauses (C) or similar clauseR e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /

GETFORCDCSHEL P1The seller is responsible for unloading from the arriving means of transport in a DDP Contract 2Under Incoterm EXW The seller makes the goods available at his premises and The buyer pays fortransport costs from the seller’s premises on3Under the FOB Incoterms rule, The named place for using the Free On Board Incoterms rule isalways the loading port4Freight alwyas prepaid under C - Terms (CPT, CFR, CIP, CPT) & D Terms (DAP, DPU amd DDP)5Freight alwyas collect under E - Terms ( EXW ) and F Terms (FCA, FAS, FOB)6Under the CIP Incoterms rule the seller is required to obtain limited insurance cover complying withInstitute Cargo Clauses (C) or similar clause7Under the CIF Incoterms rule the seller is required to obtain extensive insurance cover complyingwith Institute Cargo Clauses (C) or similar clause8Under the CPT Incoterms rule the seller delivers the goods and transfers the risk to the buyer whenhe hands over the goods to the frist carrier 9 Under the FOB Incoterms rule the seller delivers the goods and transfers the risk to the buyer whenas soon as the goods have been loaded onboard the vessel10Using the DPU Incoterm rule, the seller assumes all cost - including import formalities, and risksuntil the goods are ready for unloading at named place of destination12345678910INCOTERMS -2020TRUE FALSER e a d m o r e a t h t t p : / / g e t h e l p f o r c d c s . i n /