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 URBPO REGIONAL LAUNCH IN DUBAI .......... 1  NEW ICC BC EXECUTIVE COMMITTE.............. 2  URBPO RULES .......................................... 4  IFC FIT INITIATIVE UPDATE ........................... 5  EXPERT COMMENTARY - PAVEL ANDRLE ........ 8  EXPERT COMMENTARY - CARLOS BACIGALUPE 15  ADB TRADE FINANCE SEMINARS ................... 18  WEBLINKS FOR EXPORTERS .......................... 20  CHINA SYSTEMS UPDATE .............................. 21  TFR LOOKS AT CHINA TRADE ....................... 25  RECENT EVENTS .......................................... 30

TradeBriefeBSI

ISSUE 11

September. 2013

NewISBP - Dubai Chamber Date for Diary!

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22 September 2013 http://www.ebsi.ie/files/ISBP.pdf

ICC Regional Banking Commission MENA Launches URBPO with Dubai Chamber of Commerce and Industry Dubai, UAE

Video Report

The Dubai Chamber of Commerce and Industry in partnership with the International Chamber of Commerce‘s Regional Banking Commission Middle East and North Africa (MENA), held a regional launch of the ICC Uniform Rules for Bank Payment Obligation (URBPO) at its Dubai headquarters on Monday June 24, 2013 The ICC Regional Banking Commission, MENA, also revealed key findings of its Global Trade Finance Survey 2013, which provides a detailed statistical analysis of the regional and global trends in trade finance.

H.E. Hamad Buamim, Director General of Dubai Chamber of Commerce welcomes delegates to the launch.

Click the play button to view video report. If your system asks you to allow the content please click yes so that you can stream this video from our server.

What is a BPO? A Bank Payment Obligation or BPO is an irrevocable undertaking given by a bank to another bank that payment will be made on a specified date after successful electronic matching of data according to an industry-wide set of rules - the URBPO. eBSI with China Systems has developed a short simulation of the BPO Process which can be viewed at http://www.chinasystems.com An article on URBPO by Khalil Matar can be found later in this emagazine.

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News & Commentary

NEW ICC BANKING COMMISSION EXECUTIVE COMMITTEE ANNOUNCED New Banking Commission Executive Committee Presented in Lisbon, Portugal. The International Chamber of Commerce (ICC) presented its new Advisory Board and Executive Committee. The introduction of the Advisory Board is in line with the ICC Banking Commission‘s objective to remain a relevant and recognized authority within the emerging trade industry and is part of a major overhaul of the commission. Mr. Kah Chye Tan, who is Chair of the Commission, will also chair the Advisory Board. Mr Dan Taylor, Managing Director, Corporate & Investment Bank, Global Market Infrastructures, J.P. Morgan, will chair the Executive Committee in his capacity as Vice-Chair of the Banking Commission. The Senior Policy Manager of the Banking Commission acts as Executive Secretary for both the Advisory Board and Executive Committee and is delegated the responsibility for the day-to-day management of the commission by ICC. Vincent O‘Brien was appointed to the Executive Committee and will continue on as Chair of the ICC Market Intelligence Group. New Rules Approved – URBPO 750 During the Lisbon Banking Commission Meeting the new Bank Payment Obligation initiative was presented in depth during an education session organised by the ICC and SWIFT. The Bank Payment Obligation is an irrevocable conditional undertaking to pay given from one bank to another.`

Michael Bickers of BCR Publishing with Laura Fornt of Caixa de Catalunya and Professor Xavier Fornt at the Lisbon Meeting.

The URBPO as the new rules are called can also be viewed as an electronic letter of credit and is an alternative means of settlement in international trade. It provides the benefits of a letter of credit (LC) in an automated environment and enables banks to offer flexible risk mitigation and financing services across the supply chain to their corporate customers.

A Banking Commission Delegate wins the Business and Finance Consulting Prize of an iPhone 5 from Vincent O’Brien at Lisbon Meeting.

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Invitation to the next ICC Banking Commission Meeting in Austria from 21-25 October 2013 - See you there!

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News & Commentary

Directors Note Welcome

Trade Finance Readers Crossword to

this eleventh edition of eBSI Tradebrief. This edition has a lot of new features as part of our continuing policy of bringing you the most innovative and creative learning experience in the industry!

In this issue we wanted to share with you one of our Trade and Finance student’s favourite activities – Knowledge Self-Test Crosswords! You will need to print this page to complete the crossword below (our students use interactive crosswords live on the internet) and you will find a solution to this crossword on the inside back page of this e-magazine.

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On this page you can enjoy one of our Trade Crosswords and you will already have seen the new Video Streaming feature for our e-magazine in the front page cover article.

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We have also expanded our Finance of International Trade Course as you will see later in response to industry needs.

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Enjoy this latest edition!

Thomas Smith Across 1. 4. 5.

The currency risk or an exporter or importer is commonly referred to by trade bankers as foreign _ _ _ _ _ _ _ _ risk. A quantitative restriction on the quantity of goods that than be imported into a country is known as a _ _ _ _ _. When a country or trading area prohibits the import of goods or conducting any trading activities with another specified country these prohibitions is known as a trade _ _ _ _ _ _ _ _ _. 6. The risk that an obligation undertaken by a national government may be defaulted on is referred to as _ _ _ _ _ _ _ _ _ risk. 10. _ _ _ _ _ _ _ _ _ risk is the risk of loss or damage of goods during transportation between seller and buyer. 11. The risk of non payment by the importer is known as _ _ _ _ _ _ _ _ _ _ risk.

Down 2. 3. 5. 7. 8. 9.

The regulations imposed by central banks in some emerging markets to regulate the availability of hard currency for international payments are known as exchange _ _ _ _ _ _ _ regulations. The risk that the currency of export will weaken between the time of agreeing the sales contract and the due date for payment is known as _ _ _ _ _ _ _ _ risk. International trade conducted between emerging or developing countries is often referred to as _ _ _ _ _ -south trade. The INCOTERMS, the UCP, the URC and the URDG are _ _ _ _ _ issued by the International Chamber of Commerce that facilitate certainty in obligations relating to international trade and finance. When an importer gets his bank to issue a guarantee or letter of credit the exporters payment risk shifts from commercial risk to _ _ _ _ risk. _ _ _ _ _ _ _ risk arises when a local event or situation within a state means that payment can not be made as a result.

Remember you can check your answers on the inside back page of this ezine! To view a live version of the crossword go to http://www.ebsi.ie/news/crossword.html

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News and Commentary

NEW Method of Payment and Rules The Uniform Rules for Bank Payment Obligations were approved at the ICC Banking Commission Meeting in Lisbon in April 2013 and launched in Paris and Dubai under ICC Publication URBPO 750 . These rules were developed by the Banking Commission of the International Chamber of Commerce (ICC), with a partnership established with financial messaging provider SWIFT to take into account the legitimate expectations of all relevant sectors. Set to revolutionize trade finance transactions, BPO is an irrevocable commitment made by one bank to another that payment will occur on a specified date after a specified event has taken place. It is an alternative instrument for trade settlement, designed to complement existing solutions and not to replace them.

Expert Profile Name: Khalil Matar Position: Senior Manager Employer: Alinma Bank Location: Ryadh, Saudi Arabia Specialisation: eBusiness Contact: khalil.matar@gmail.com

"This is a golden age for trade finance. All banks wish to better engage in open account transactions and the BPO will make it happen. It is vital that the industry aligns on enhanced rules and tools and by benefiting from ICC and SWIFT standards, banks will be better equipped to carry out their trade business," said Kah Chye Tan, Chair of the ICC Banking Commission and Global Head of Trade and Working Capital at Barclays. "The ICC Banking Commission views the development of the BPO rules and the related International Organization for Standardization (ISO) 20022 messaging standards as strong foundations for banks to provide modern risk and financing services aligned with today's technology evolution," he added.

The BPO provides the benefits of a letter of credit in an automated and secured environment, and enables banks to offer flexible risk mitigation and enhanced financing services to their corporate customers. Gottfried Leibbrandt, CEO, SWIFT said: "The BPO, with the underlying ISO 20022 standards, is shaping the future of the trade industry and is a key opportunity for banks to innovate in the services they offer to their corporate customers." The rules were carefully prepared over a period of two years, and are the result of a collective effort by a number of ICC constituent groups, in particular the ICC Banking Commission who led this project and its members who made pertinent suggestions on the text. The rules were launched Globally in Paris in May 2013 and in the MENA Region at Dubai Chamber of Commerce as part of the activities of the recently established Regional Banking Commission in June. A very informative education session was held at the ICC Banking Commission Meeting in Lisbon in April this year with the participation of SWIFT and a number of early adopting banks who shared their experiences of implementing the BPO. The URBPO will enter into force on 1 July 2013 and are currently available from the ICC Bookstore atwww.iccbooks.com

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IFC FIT Initiative

IFC FIT INITIATIVE REACHES 700 GRADUATES 2013 Program Starts 30 September in 8 countries The IFC Finance of International Trade elearning program achieved another success in 2012 having added another 100 graduates to the growing pool of certified Trade Finance Professionals working in Bangladesh, Pakistan, Nigeria, Cambodia, Kenya and East Africa and Vietnam. This achievement has led to the program being featured at the recent IATTO Forum in Tallinn, Estonia and at the IFC Partners meeting in Dubai, UAE.

Project Partners in the IFC FIT Initiative eBSI Gratefully acknowledges the participation and contribution provided to the success of this project by the following project participants:

Congratulations to all the graduates! The next intakes of the IFC FIT Program will be taking place from 30 September 2013 so contact us at info@ifcfitinitiative.com if you would like to join the course!

IFC FIT INITIATIVE Key Indicators

700 Professional Graduates The IFC „FIT Initiativeâ€&#x; is an e-learning program that is designed with an important dual purpose: 1. to train and certify international trade finance professionals 2. to build an online global network of international trade and finance professionals who will share knowledge and experience on an online platform specifically developed for the program This six Month program is delivered in a combination of the following learning elements: Online Support site for students Students will be incorporated into the eBSI Alumni and will be able to collaborate through a purpose built learning platform. Online Specialised training in UCP 600 ICC Approved Online Training in UCP 600 (Mentor or Upskill 600).

Online Collaboration Site for stakeholders To leverage the network aspect of the 'FIT' Initiative all stakeholders (participants, tutor sand coordinators) will have access to an online networking and collaboration system designed to facilitate exchange of ideas and contact building. Online Interactive Core Learning Material The Finance of International Trade (FIT) course is comprised of the following Learning Units: * Methods of Payment * Bills of Exchange * Documentary Collections * Documentary Credits * Import Documentary Credits * Bonds & Guarantees * Forfaiting, Factoring & Invoice Discounting * Structured Trade Finance * Export Credit Agencies * Complex Transactions * Warehouse Financing * GTFP Trade Facilitation Program

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3 International Certifications 9 Countries in Trade Network Fully revolving elearning program 87% Received their First Trade Qualification thanks to IFC 7 Programs Completed

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New Learning Units Added to Respond to Industry Demand The IFC Finance of International Trade elearning program has been expanded to a 6 month program to allow for additional learning units covering key areas as required from feedback from the over 700 graduates who have already taken the program. All Graduates will have access to the new modules at no extra cost! The modules are outlined to the right and include important areas such as Trade Sales, the Identification and Prevention of Trade Finance Fraud, Risk Management, AML and CTF procedures, Supply Chain Finance and KYC Procedures.

TRADE SALES  How to Properly Build a Trade Sales Team  Marketing Trade Products from a banks viewpoint  Structuring your offer to the Client ICC TRADE RULES Coverage of the following important rules  Incoterms 2010 o International Standard Banking Practice  Bank Payment Obligation. TRADE FINANCE FRAUD IDENTIFICATION AND PREVENTION  Trade Finance Fraud Structures and Schemes  LC Fraud and UCP 600 Related Articles  Fraudster Profile and Bank Relationships  Fraud Identification and Prevention  Due Dilligence, KYC and Anti-Money Laundering. SUPPLY CHAIN FINANCE  Warehouse Finance  Inventory Finance  Collateral Management and Stock Monitoring AML AND CTF FOR TRADE  KYC – Know Your Customer Procedures  AML – Anti-Money Laundering Procedures  Counter-Terrorism Financing Procedures RISK MANAGEMENT IN TRADE FINANCE  The role of Risk Management  Corporate Risk Management  Asset-Liability Management IFC    

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SUPPORTS TO TRADE FINANCE Global Trade Finance Program Global Warehouse Finance Program KYC Toolkit Other Trade Supports from IFC

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ICC Austria Conferences

ICC AUSTRIA CONFERENCES Fraud in International Trade Finance

21 October 2013

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SANCTIONS, EMBARGOES & MONEY LAUNDERING IN TRADE FINANCE

22 October 2013

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BASEL II &III - Implementation in Trade Finance Departments

25 October 2013 EBSIEXPORTACADEMY

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Expert Commentary

THE ISSUE OF DISCREPANCIES AND THE ROLE OF THE DOCUMENTARY CREDIT If you ask a banker, an exporter, an international cargo insurance specialist, a carrier or a freight forwarder, what the biggest problem is when dealing with documentary credits, you will most likely hear them all saying in unison: ‘discrepancies. Yes, we all seem to acknowledge that the high number of discrepant presentations under documentary credits is a serious problem. It leads to delays, increase of the cost, and it can even result in refusal of payment. The beneficiary then feels that he does not really ‗benefit‘ so much from using the instrument and his frustration spreads around the whole industry.

Expert Profile Name: Pavel Andrle Position: Secretary - Banking Commission Employer: ICC Czech Republic Location: Prague, Czech Republic Specialisation: Trade Finance Training Contact:pa@cmail.cz

However, is it a problem of the documentary credit as such? Or is rather the one of the exporter himself who is not able to present compliant documents? As a frequent international lecturer and consultant, I am convinced that to the significant extent exporters themselves are to blame as well. Many of them do not pay enough attention to the terms and conditions of the contract of sale which includes the payment condition, i.e. the payment by means of the documentary credit. When the credit is advised to them, they rarely read it carefully and insist on changing incorrect or vague conditions. And finally, they do not make sure that the documents comply with the credit terms and conditions in time of their presentation. No doubt, we bankers must also honestly admit that there is some blame on us. We seem, from time to time, disagree among ourselves whether a document is discrepant or not. Partly it is caused by the lack of education and understanding. Secondly, many problems and issues regarding presentation of documents could be easily avoided by investing appropriate time and energy when issuing the credits! Many credits include conditions which are vague, inappropriate and sometimes even clearly unworkable! Has the bank merely copied instructions from the applicant without discussing them? Or even it added its own inappropriate conditions? The buyer of the goods, the applicant, is the party which gives the issuing bank instructions regarding the terms and conditions of the credit. Does he strictly follow the relevant terms and conditions of the underlying contract of sale? Or does he rather develop new terms and conditions without having them discussed and agreed upon with the seller, the beneficiary, at the first place? The applicant might have, unless he makes his homework properly, another ―problem‖ related to the documentary credit. The payment under the credit at this account would be done even when the imported goods do not satisfy underlying terms and conditions of the contract of sale provided they comply with the credit terms and conditions. Therefore, the applicant should well think ahead whom he makes business with, and also very carefully about which documents, with what content, are to be presented by the beneficiary! Role of the documentary credit Article 4 of UCP 600, ICC Rules for documentary credits, says: ―A credit by its nature is a separate transaction from the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit.― Article 5 then adds: ―Banks deal with documents and not with goods, services or performance to which the documents may relate.― These two rules sharp main characteristics of the documentary credit. They are to be well understood by all parties, not only theoretically, but practically. The parties using the credit must take appropriate measures to achieve the success when using the unique documentary credit concept, i.e. payment obligation of the bank - the independent third party paymaster, to pay against complying documents. This concept brings a lot of advantages for the parties concerned (but not to all at the same level), but also disadvantages, or better to say: ―challenges‖.

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News and Commentary

The beneficiary knows that he is to be paid by the bank if the presentation of documents complies even if there is a dispute related to the delivery of the goods with the applicant. The credit thus provides him with ―the money first‖, and possibly ―argue with the applicant later‖ concept. However, it might also happen that the goods comply with the underlying contract, but the related documents presented under the credit do not comply with its terms and conditions, and then the payment might be well refused by the bank. In such a case, which the beneficiary should try to avoid as much as possible, he would have to ―argue first‖ with the applicant, but certainly outside the credit itself. The independence principle of the credit must be fully understood by the applicant and banks concerned as well. Banks are indeed in the credit transaction independent, neutral, both from the applicant and the beneficiary, when it comes to the decision whether the documents comply or not, i.e. whether the payment is to be done or not. Therefore, the documentary credit poses a lot of challenges to the parties concerned, above all to the beneficiary and the applicant. It is up to them to negotiate the appropriate terms and conditions of the credit and incorporate them in the relevant contract of sale. The documents requested by the credit should, as much as possible and suitable, correspond to the obligations of the seller in relation to the delivery and possibly other obligations he has under the contract of sale. It is all about documents. Parties need to know the relevant aspects of the concerned documents and how they act in different industries/relationships. Cause of the trouble We, bankers, rightly claim that we are not required to be experts in the international contracts of sale, transport, cargo insurance and those in other related industries. We examine documents as per the credit terms and conditions and the applicable provisions of UCP 600, all in line with the international standard banking practice. This is well established rule. Thus, the way a banker examines an invoice, transport document, insurance document etc. under the documentary credit inevitably differs to the manner in which an expert from the relevant industry would examine the same document as per the applicable law and/or the industry practice. The carrier, freight forwarder, cargo insurer, an employee of a state authority, chamber of commerce etc. are not bound to know banker´s rules and practices. And, above all, one must also acknowledge the fact that laws and practices related to these relevant industries might differ from one country to another! There is significant lack of standardization in many international business fields. Documents issued by parties vary significantly, especially in the international context. And the applicant (buyer) and the seller (beneficiary)? They are, certainly, not experts neither in the documentary credit operations, nor in the international transport, cargo insurance, phytosanitary, veterinary, health etc. procedures! Solution However, even in this playground, which inevitably creates a lot of room for misunderstandings and mistakes, one can play it safe. The beneficiary and the applicant must understand the rules of the business they are in. They must pay attention to detail. Documentation is very technical matter, and documentary credits are exclusively all about the documents! The beneficiary (seller) must appreciate that his responsibility under the underlying contract (to which the credit is related as the realization of the payment condition) is actually twofold: to deliver the goods as agreed, and also to present the requested compliant documents. It is, therefore, crucial for the beneficiary to make sure that the contract and the relevant credit specify the requested documents, including their contents, very precisely and clearly. Therefore, he would be clearly aware what his responsibilities exactly are. If the payment is provided by means of the documentary credit, it is crucial for the beneficiary to make sure that he can present the compliant required documents. Only then he is entitled to be paid by the independent paymaster – the issuing bank (or the confirming bank, if any).

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Expert Commentary

The applicant (buyer) is, finally, the party which pays for all this, i.e. the value of the goods, issuing bank charges, and possibly other charges and cost, as the case maybe. It is in his best interest to make sure, in the underlying contract of sale as well as in his instructions to issue the credit, that the conditions related to the required documents are adequate and clear. Since both the beneficiary and the applicant are not experts in the international banking, international transport, cargo insurance or so, they both significantly rely on bankers, carriers, freight forwarders, cargo insurers, and many other third party service providers. It is essential for them to work only with the competent, experienced, knowledgeable and trustworthy ones. One can be successful in foreign trade (and indeed, in any kind of business) in the long term only if it cooperates with good reliable partners. It is very advisable to consider involvement of experienced freight forwarders and insurance brokers. It is almost a must to consult the terms and conditions of the required international transport and cargo insurance in particular before the contract is signed, with a specialist. Main considerations for the applicant The applicant, the buyer, certainly wants the payment under the credit to be done (which is at his account, of course) only if the seller, the beneficiary delivers the ordered goods, in agreed quality and quantity, and in time. In relation to the documentary credit transaction, it is all about calling for the appropriate documents which prove, as much as possible, the above. The delivery and other conditions as specified in the contract of sale are to be converted into documentary requirements. The applicant wants the seller to deliver the goods as per the delivery term (as per Incoterms) agreed. He would, therefore, ask for the appropriate document which evidences that the beneficiary has delivered the goods in compliance with the delivery term. For example, in case of F-terms or C-terms, obviously the document would be a transport document which evidences the receipt of the goods in the place of delivery (place of despatch). In case of F-term, the transport document would evidence that freight is to be still paid (Freight Collect), in case of C-term the freight would have to be already paid (transport document is to evidence Freight Paid). The documentary credit should clearly specify the latest date of shipment (or periods for shipments in case the shipments are to be done in instalments). Besides, the credit should also specify place of despatch (the place of delivery as per the delivery term), place of destination, type of the transport document, and above all how the transport document is to be issued. Documents of title, such as bills of lading or multimodal bills of lading, can be issued in transferable way, or as straight consigned. Other transport documents, i.e. consignment notes, such as road, rail or air transport documents, can be issued only as straight consigned, i.e. showing a named consignee. The credit should clearly specify the way the transport document is to be issued. If the document is to be straight consigned, then the name, address and possibly contact details of the consignee (most likely the applicant himself) are to be specified. It makes sense to request the transport document to show a Notify Party, i.e. the party which is to be notified about the delivery of the goods to the place of destination by the carrier etc. It requires more skills and awareness of the parties to select and specify an appropriate document in case of E-terms or Dterms. For instance, in case of EXW, what would be the appropriate document to ask for? Which document exactly reflects the fulfilment of the beneficiary´s obligation to place the goods in his warehouse at the disposal of the applicant? The requirement for the transport document or taking over protocol would obviously go beyond the seller´s obligations/risks as per the EXW Incoterm 2010 rule. On the other hand, the delivery list issued by the beneficiary himself might not satisfy the applicant. Consequently, they might agree, for instance, on the presentation of the transport document, and if this document is not available to the beneficiary (as the goods were not taken up by the carrier nominated by the applicant), the beneficiary might, as the second choice allowed by the credit, present an inspection certificate issued by a third party evidencing that the goods were indeed placed at the disposal of the applicant in time.

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Expert Commentary

Most certainly, the applicant wants payment to be done only for the proper goods as ordered. Again, the risk that this is not met, can be only mitigated through appropriate documentary credit terms and conditions. Regarding the quality of the goods one might ask for an inspection certificate or quality certificate. But it is also necessary to specify precisely the required content, i.e. what inspection method is to be applied, what result, what quality is to be evidenced by the certificate. It goes without saying that the issuer is to be precisely specified as well. The same is true in case of other documents which are to evidence quantity (weight certificates, packing lists, etc.), or fulfilment of any other crucial condition such as phytosanitary, fumigation, veterinary, health, origin, etc. certificates. If the agreed Incoterm was CIF or CIF the applicant should clearly specify the risks to covered and all other important aspects of the required insurance document. The applicant should also be aware of the limitations of documents. First of all, the liability and responsibility of the issuers of various documents is limited by various disclaimers. A bank as per UCP 600 article 34: ―assumes no liability or responsibility for the form, sufficiency, accuracy, genuineness, falsification or legal effect of any document, or for the general or particular conditions stipulated in a document or superimposed thereon; nor does it assume any liability or responsibility for the description, quantity, weight, quality, condition, packing, delivery, value or existence of the goods, services or other performance represented by any document, or for the good faith or acts or omissions, solvency, performance or standing of the consignor, the carrier, the forwarder, the consignee or the insurer of the goods or any other person.― The risk that the documents would not fully reflect reality, is there. This risk can be significantly reduced by dealing with the trustworthly beneficiaries only, and by calling for the documents issued by reliable (third) parties. Title:

Examination of Documents under Documentary Credits

Author:

Pavel Andrle

Language: English Published ICC CR in October by: 2012 The book is written in very practical manner, incorporating all relevant ICC rules and other ICC papers, as well as all significant relevant ICC Banking Commission Opinions. It includes very detailed "Checklists", i.e. examples of the most common documents used in international trade and it explains their examination by banks in documentary credits transactions.

For more information please go to http://www.icc-cr.cz/examination

Main considerations for the beneficiary Beneficiaries are the ones who might suffer a lot in cases of improper credit requirements. If the credit requests a document with conditions the beneficiary cannot obtain on the market, he might be in a big trouble. To avoid such a situation, the beneficiary must negotiate the contract of sale and the credit terms and conditions with skill and being equipped with knowledge obtained from experts. Any requirement for a non-standard, unusual condition is to be consulted and deeply thought through. When the credit is advised to him, it is necessary to study all its terms and conditions again, and make sure that they comply and are achievable. New consultations might be needed. An amendment to the credit might be needed. When it comes to the issuance, it might be suitable to arrange for drafts of the documents and pass them to the banker for their pre-examination. Beneficiary should be, above all, careful regarding conditions related to transport, insurance documents, as well various certificates issued by third parties. Are the conditions required by the credit achievable? At what cost?

Main considerations for the banker The role of the bank, the issuing bank, and the confirming bank, if any, is that of the independent paymaster. The bank is, when it comes to its decision whether the presentation complies or not, independent and neutral, both from the applicant and the beneficiary. Yet, at the same time, the bank is to assist and indeed support, with its knowledge and experience, its customer. Obviously, the issuing bank would advise the applicant, and the bank of the beneficiary (possibly the confirming bank) the beneficiary. It might be a delicate balancing act, i.e. to be both neutral and supportive! To achieve that, the banker must be very knowledgeable, experienced, which leads to the desired and needful self-confidence. Consequently, what the banker needs is to know well the established international standard banking practice. One is always to adhere to the established terms and wordings to avoid arguments. It is necessary to strive for clarity of all expressions used. Conclusion Even in a single foreign trade transaction there is a range of separate relationships such as the contract of sale, carriage, forwarding agency, cargo insurance, documentary credit. Although some of them being legally independent, they are clearly linked together. It‘s necessary for the players in their respective fields to reach out to others, to explain their practices and to learn from others about their own practices. In time, the aim should be to create rules and best standard practices that work across all industry sectors. Pavel Andrle is an international trade finance trainer and consultant and Secretary to the Banking Commission of ICC Czech Republic. His e-mail is pa@cmail.cz, web: www.icc-cr.cz

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IIBLP Upcoming Events

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BCR Upcoming Conference

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eBSI Online e Trainin ng

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Expert Commentary

“Trade, not aid”. Decades ago, with that scream a group of small farmers claimed to the UNCTAD congress that the international community should open her eyes and perceive the damage caused by its policy of aid to developing countries. Such policy was based on granting loans on favourable terms to support raw materials supply from those countries to the first world companies. Actually, such funding was hardly refundable by the weak economies and stockpiled unpaid until it reached a level where the debt was either forgiven by countries or renegotiated to very long terms, becoming in fact a modern way of colonization.

Expert Profile Name: Carlos Bacigalupe Position: Trade Finance Consultant Employer: eBSI Export Academy Location: Madrid, Spain Specialisation: International Trade Finance Contact:cb@ebsi.ie

However, despite the large sums involved, the scheme didn‘t provide effective solutions to the problems of the supplying countries, most in need of authentic implementation of market economies than in more injections of funds which, in practice, helped large multinational corporations to keep alive a very profitable commodity market. It took years to the public opinion to realize that something had to be done to stop the wheel and change the approach to the problem, recalling the biblical command ―do not give him fish, teach him to fish‖. It was a Dutch public agency, Solidaridad, who first launched a product labelled ―Fair Trade‖ informing to first world consumers that such product – Max Havelaar Mexican coffee – was acquired from an association of small producers managed under democratic criteria and marketed according to Fair Trade standards, i.e. paying the producers a minimum price that covers their production costs and guarantee a certain return.

It was not by chance that the first ―Fair Trade‖ product was coffee as such a product met a number of requirements which made it the ideal item for the launch of the initiative: consumers are in the first world – actually, the world‘s larger coffee consumer continent is Europe – while produced by milliards of small farmers living in Africa, South-America and Asia, mostly in very poor conditions; it‘s considered a luxury article, easy to label and aimed at high-end consumers which are to some extent conscious about the need to help the poorest countries in their development.

Nowadays, the number of initiatives has grown significantly, reaching not only the cultivation of certain products but covering aspects such as environmental protection, sustainable development of tropical forests, the proper use of water resources and/or sustainable tourism. By adhering to those initiatives, multilateral agencies, governments, NGOs and import / export companies undertake to respect in their commercial transactions a set of established standards, which set out from the prohibition of the use or trade of goods produced by labour subject, to working conditions close to slavery, to fixing a fair price that allows the sustainability of productive activity in the developing country supporting their integration into the international market.

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Expert Commentary

On the other hand, to label an item or a service as a Fair Trade product, the company is accessing the market with a competitive advantage, as it implies respect to values that make it more attractive for potential buyers. When the consumer chooses from the supermarket shelves a product labelled as adhered to any of these initiatives, although its price may be substantially higher than that similar products, he is aware that his contribution will help the development of producer countries and their inhabitants, improving their living conditions, promoting social welfare and fighting against injustices of conventional trade.

Adhere to these initiatives has advantages for all market players: producers, purchasing associations, consumers, etc. but also for banks that finance these transactions, because the fact that there are entities which grant the required certificates and conduct regular audits to ensure compliance with the standards, allow banks to better understanding of its customers' business operations.

Carlos

On the occasion of SIBOS 2013 taking place in Dubai, the Regional Banking Commission (RBC) MENA of the International Chamber of Commerce in partnership with Dubai Chamber of Commerce & Industry organize a prestigious trade professional networking briefing on Monday, 16th September 2013 gathering prominent speakers including H.E. Hamad Buamim, Director General, Dubai Chamber of Commerce & Industry, Mr. KahChye Tan, Global Head of Trade & Working Capital at Barclays Bank and Chair of ICC Banking Commission and C-level stakeholders from the banking industry. The leadership of the RBC MENA will present the ICC agenda of key issues facing the banking industry today, including the regulatory environment and the need to adopt business standards to level the playing field. The event will gather leading banking industry business executives, policymakers and trade finance experts. This ICC Briefing will also allow the main players attending SIBOS to network in a social atmosphere. SIBOS 2013, the annual conference organized by SWIFT gathers 7,000 decision makers and topic experts from financial institutions, market infrastructures, multinational corporations and technology partners from more than 200 countries. Location: Ritz Carlton Hotel, DIFC, Samaya Ballroom, Section A Date: Monday, 16th September 2013 Time: 17:30 – 19:00pm For more details visit: https://www.dubaichamber.com/events/upcoming-events/ icc-briefing-expanding-the-global-reach-of-trade-finance

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Tools s for Tra aders

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ADB Trade Finance Seminars

Yangon, Myanmar, Manila, Philippines and Almaty, Kazakhstan A 5 day Trade Finance workshop was organised by the Asian Development Bank and delivered by Vincent O‘Brien of eBSI from 18 - 22 March 2013. The objective of this trade finance workshop was to provide participants with the required tools to understand and analyse corporate customers trade finance needs so that they can provide trade finance solutions which match the customers needs and in turn generate continuing lines of income for their respective banks. Spanish Consultant Carlos Bacigalupe was contracted by ADB earlier in December 2012 to deliver a training workshop on Trade Sales techniques for Trade Finance Professionals.

Trade Finance Operations Program Outline The Trade Finance Operations seminar focused on the following areas in order to ensure first of all a proper understanding of the spectrum of trade finance products a bank can offer and how to manage them. Below is a summary of topics covered: * * * * * * * * * * * * * * * * * * *

Benefits to Banks from International Trade Services. Essentials to develop International Trade Services. Payment and Risk Categories. Understanding customers contracting requirements Concise summary of Incoterms 2000 Risk Analysis of Trade Products Documentary Collection in Detail. Managing Export Collections Fundamentals of Documentary Credits Types of Letter of Credit Standby Letter of Credit Bonds and Guarantees Implications for Bank Customers ICC Rules for the Issuance of Bonds and Guarantees Receivables and Supply Chain Financing Forfaiting Factoring Invoice Discounting Warehouse Finance

Carlos Bacigalupe in Kazakhstan at Trade Sales Seminar

Vincent O'Brien in Manila for ICC Trade Rules Update

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Advertisement Feature

DISCOVER HOW GLOBALTRADE.NET CAN HELP YOUR OVERSEAS OPERATIONS Want to share your expertise to the international trade community and in return gain new business leads from other trade professionals? FITA Online (http://www.fita.org) makes it possible through its new website http://GlobalTrade.net.

Are You an Importer/Exporter? Find informative content and service providers for your international trade operations in GlobalTrade.net’s Knowledge Resource. Here international trade professionals can find experts’ analysis, market surveys, tips, white papers, country profiles, experts’ views, webinars, news flows, video tutorials, etc. Are You a Service Provider? Feature your expertise by posting content to our Knowledge Resource and listing yourself in our Database of International Trade Service Providers. International trade professionals can select experts such as international marketing consultants, trade finance companies, banks, freight forwarders, quality control firms, lawyers, accountants, customs brokers, instructors, insurance providers for their international operations.

http://www.GlobalTrade.netis run by FITA Online (http://www.fita.org) , the online services division of the Federation of International Trade Associations (FITA), together with partners U.S. Commercial Service, UK Trade & Investment, ThomasNet, Alibaba and Kompass. eBSI Export Academy has teamed up with FITA Online to provide you with special invitations to try out this new website. You will be among the first to try it out. So what are you waiting for? Sign up today! The new website is currently in its “soft launch” phase- that meaning you can only access it by an exclusive invite. Launching in only a matter of weeks, GlobalTrade.net would like to invite all eBSI TradeBrief subscribers to create a profile today, post informative content and gain new business leads for FREE. Creating a profile and posting content is free. Being listed in the Database of International Trade Service Providers is free until June 2011.

Simply log in with the ID and Key below to start getting new business today! ID: eBSI KEY: 1234

US Customs Broker Exam Prep Course Learn the key aspects of US Customs and launch a career as a US Customs Expert!        

Online Tutorials Certificate of Completion awarded by eBSI Coverage of legal issues US Security requirements Self-paced learning An excellent introduction to this area. Practice Exams with Tutor Feedback Optional Discussion Forum Support Available

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eBSI Weblinks for Exporters

eBSI Weblinks for Exporters is a new section that will provide you every issue with websites recommended by our course participants as being of particular use to them in their international Trade Activities! Websites that can be considered for inclusion in this section include but are not limited to International Trade, Trade Finance and Logistics sites such as: •Business Networking Sites •References or Blogs If you have a site to recommend then send it •Import Export Directories to Weblinks for Exporters at weblinks@ebsi.ie! •Country Portals

China Systems is the biggest Trade Finance Software vendor in the world with a broad and loyal customer base. Their Eximbills Trade Finance System is a great platform to manage trade finance operations for any bank. http://www.chinasystems.com

Coracle Voice is a social media, news monitoring and online consultancy service for the shipping industry. Coracle Voice is brought to you by Coracle Onlinehttp://coraclevoice.co.uk/

Coracle delivers expert professional development packages and training solutions for the shipping industry. Their blended and adaptable skills courses allow shipping professionals to easily integrate education and training into their work or home lives. That is why eBSI counts Coracle as its strategic education partner for our clients in the Shipping industry. Check out their new iphone apps for the shipping industry at: http://www.coracleonline.com/apps

Export Law Blog is a very interesting and informative resource for anyone interested in International Trade Law or compliance issues with a wide variety of articles posted by various contributors. http://www.exportlawblog.com/

An extensive online community with a highconcentration of trade related organisations under one website. A great place to find opportunities. http://www.webportglobal.com

Exportcourse.com is a free online resource which offers basic guides to exporting and coordinates enrolments for Caribbean students of eBSI Export Academy. Their basic guides are an excellent primer for the more advanced studies offered by the International Trade Specialist Accreditation. http://www.exportcourse.com

GlobalTrade.net is an initiative from the Federation of International Trade Associations (www.fita.org) with the objective of being a knowledge resource for international trade professionals & a crossborder database of international trade service providers. http://www.GlobalTrade.net

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A new Brazilian Government Portal offering the best of brazil to a world of hungry importers. Info on investing in Brazil is also available there. http://www.brasilglobalnet.gov.br

The ITFMPN is an educational and professional body which is dedicated to the task of broadening the professional horizons of tomorrow's trade finance officers , managers, and Lawyers in Nigeria. http://www.titfmpn.org

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China Systems Update

CS Prize Draw featuring ICC Tools for Trade box awarded to one lucky attendee at Banking Commission Lisbon, Portugal Vincent O’Brien awards another China Systems Prize at the ICC Banking Commission Meeting in Lisbon. Congratulations to the lucky winner of the China Systems Prize Draw!

Mexico City, Mexico Vincent O’Brien, in his role as China Systems Trade Finance Advisor, arranged a Prize Draw for an Apple iPad2 at the ICC Banking Commission Meeting in Mexico. Congratulations to the lucky winner!

CS Newsflash China Systems partners with FIS in providing Vietinbank‟s trade finance and SCF solution Ho Chi Minh City, Vietnam China Systems, global leading trade and supply chain finance software vendor, has signed a license and service agreement with Fortune 500 company FIS for the use of China Systems‘ trade finance and SCF solutions, thereby adding Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Hanoi to its list of new customers. Vietinbank is one of the largest and most established commercial banks in Vietnam. Vietinbank signed on December 12, 2012 a Contract of Procurement and Implementation of a complete Core Banking Solution with FIS, the world‘s largest provider of banking and payment technologies and a member of Standard & Poor‘s 500®. As a partner of FIS, China Systems will supply Vietinbank‘s trade finance, factoring and SCF systems using Eximbills Enterprise as the back-office solution and Customer Enterprise as the front end corporate portal. There will be 200 concurrent back-office users servicing 150 Corporate customers. Eximbills Enterprise is China Systems‘ SOA compliant, Java EE-based trade finance solution installed by many international banks to meet their trade services processing requirements. It combines a Rapid Application Development toolkit with a flexible base business model, providing support for Traditional Trade, Open Account, Supply Chain Finance, and Payments operations. Customer Enterprise is China Systems‘ Corporate Trade Portal, which provides a single window solution for a corporate customer‘s complete trade processing needs. The implementation project kicked off in December 2012, the start of a 2.5-year project timetable covering both back-office and front end systems for Trade Finance, Supply Chain Finance and Factoring.

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EBRD Graduations

EBRD Graduations 2013 Moscow, Russia and

Baku, Azerbaijan

The EBRD‘s Trade Finance Programme (TFP) e-Learning 2012 Graduation Ceremony took place during the Exporta 5th Annual Russia and Eurasia Trade and Export Finance Conference. A series of prizes was awarded to the best students in the e-Learning Programme, a flexible online study programme for people from the trade finance and corporate banking departments of issuing banks provided by the TFP. Another Graduation Event took place in Baku, Azerbaijan. Here is our report of events on the Graduations.

EBRD TFP Trade Exchange 6 Out Now! Download it directly from here

International Trade Certified Training Programmes

     

Programme Intakes every two months from September 30th, 2013

Certificate in Logistics Certificate in Finance ITS Accreditation Advanced Certificate in International Trade & Logistics Diploma in Export Operations Certified Course in US Customs Procedures

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IFC Seminar in Haiti

IFC Trade Products Training in Haiti Port-Au-Prince, Haiti eBSI's French Language Trade Finance Specialist was contracted by IFC to deliver a Trade Finance Products Training in Haiti. The training was delivered in Port-au-Prince from April 22nd to April 26th, 2013. The targeted training audience was staff from commercial banks from Haiti. The program was designed to provide the attendees with an exhaustive knowledge on Trade Products and their treatment. It included as well the risks, INCOTERMS, methods of payment, and special credits. Training Structure The training was focused at basic to intermediate level with a significant number of customized case studies, at least 3 of them on a daily basis, for completion by the participants. During the course of the program the participants were involved in individual and group exercises browsing all situations of International Trade operations, and their payments, as well as exercises related to Trade Finance and risks in Haiti.

International Trade Certified Training Programmes      

Programme Intakes every two months from January & March 2009 Certificate in Logistics Certificate in Finance ITS Accreditation Advanced Certificate in Delivered exclusively by: International Trade & Logistics eBSI Export Academy Diploma in Export Operations Tel: +353 94 9381444 Fax: +353 94 9381708 Certified Courses in Shipping Web: http://www.ebsi.ie Email: info@ebsi.ie

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ISBP Seminar

ISBP is an indispensable source to banks, exporters, logistic specialists and insurance companies worldwide. It outlines the best practices which letter of credit practitioners and users refer to when it comes to examining documents under commercial documentary credits. This seminar will bring a new dimension to the trade finance by providing a comprehensive overview of obligations and challenges faced by the parties involved in the examination of documents as well as detailed analysis of the application of the newly updated ISBP.

Join Vincent O'Brien and Khalil Matar for a practical and informative workshop on the updated ISBP which will be an invaluable addition to Trade Finance Practitioners knowledge this year! For more info email Legalevents@dubaichamber.com or download from http://www.ebsi.ie/files/ISBP.pdf

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TFR Featured Article

TFR LOOKS AT TRADING WITH CHINA When the Chinese import and export growth slowed up, reflecting lower demand for Chinese exports overseas and slower domestic demand, one would be forgiven for assuming this would affect growth in renminbi(RMB) trade finance. In fact, the reverse has happened. Cross-border trade settled in RMB rose 40% last year to CNY2.46trn (US$0.4trn). Cheng Jun, general manager of Bank of China‘s corporate banking unit, observes that this is almost as much as the CNY2.58trn (US$0.5trn)of RMB trade in the 2.5 years between the launch of the RMB trade settlement scheme in July 2009 and the close of 2011.

Expert Profile Name: Clarissa Dann Position: Editor Employer: Trade & Forfaiting Review Location: London, UK Specialisation: Trade & Forfaiting Contact:cdann@waterlow.com

This represents just over 2% of world trade (US$18trn in2012, according to World Trade Organization estimates), although some estimates are lower. Nevertheless, given that China is the second largest economy in the world, its currency will not be on the sidelines for much longer, says Simon Constantinides, HSBC‘s regional head of global trade and receivables finance Asia-Pacific. China overtook the US as the largest goods trading nation in 2012 – Chinese two-way trade hit US$3.87trn with the US atUS$3.82trn. A EuroFinance survey of 300 corporate treasurers in May2013 reports that 73% of respondents believe the RMB will be at least the world‘s third most important currency within ten years and a further 27% reckon it will overtake the euro to second place behind the US dollar. Optimism was highest among those already using at least one offshore RMB product.1 Business benefits ―Headwinds in international trade push corporates to think even harder about their competitiveness and operational efficiency. And transacting in the RMB creates opportunities for them to reduce FX costs,‖ says Standard Chartered‘s head of RMB products Asia, Frankie Au.‖ Kuresh Sarjan, head of global trade finance Asia Pacific at Bank of America Merrill Lynch (BofAML) agrees: ―We have certainly seen our corporate clients more and more re-denominating and re-invoicing their transactions in the RMB.‖He confirms his eyes have been glued to the opportunities ever since the currency‘s trade pilot in 2009.2 This is because settling in RMB makes it less expensive for Chinese buyers and suppliers to deal with foreign corporates – which helps expand the corporate‘s network and improve purchasing power. In a survey of 700 international businesses in China conducted by Neilson on behalf of HSBC, 53% of respondents said they would offer discounts of up to 5% for transactions settled in RMB. Pacific at Bank of America Merrill Lynch (BofAML) agrees: ―We have certainly seen our corporate clients more and more re-denominating and re-invoicing their transactions in the RMB.‖ He confirms his eyes have been glued to the opportunities ever since the currency‘s trade pilot in 2009.2 Constantinides adds: ―The 24% of respondents who expected to start using the RMB within the next five years gave these reasons why: ■to mitigate FX risk (59%); ■to obtain better pricing from their trading partners (42%); and ■to benefit from market disparities between on and off shore RMB markets.‖

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TFR Featured Article

However, fewer businesses outside Hong Kong and mainland China appear to be taking advantage of the RMB as a means to gain competitive advantage, with 11% of respondents in Singapore,11% in the UK, 9% in German, 9% in the US and 7% in Australia confirming its use. The EuroFinance survey paints a similar picture, citing ―concerns about regulation, readiness of internal systems and policies and a lack of understanding of how using offshore RMBcould benefit their business‖. How well corporates understand the opportunities available is the key determining factor, says StanChart‘s Au: ―Those that switch to the RMB have operations in China or a base in Asia where they have a number of business dealings with the Chinese regions or subsidiaries in China.‖ See Figure 1 for his explanatory summary.

Why the cold feet from the foreign corporates? Bank of China‘s Cheng Jun explains: ―Exporters to China that earn RMB will want to know whether RMB will be used widely in trade in the future; whether the cross-border allocation and use of RMB funds are convenient; and whether there are added-value benefits of using RMB to settle cross-border trade.‖ He continues: ―Importers that pay in RMB need to know what it costs to pay in RMB and whether sufficient RMB funds are available.‖ Corporates need to get up to speed fast. HSBC‘s Constantinides warns: ―It is clear that Chinese traders are prepared to share the benefit gained from removing the currency risk from within their cost base. Businesses trading with China that fail to seize the opportunity of using the RMB may be losing out to their competitors – it‘s not a level playing field.‖ While global trade banks active in Asia are taking a proactive approach to client education using seminars and discussions with relationship managers, Sibos is a good opportunity to review some of the SWIFT support available. Its most recent white paper, Perspectives on the future of RMB clearing, makes the point that trade finance is the primary driver behind the increase in RMBdenominated payment transactions. It adds: ―While the potential cost savings of using the RMB can help corporations, the industry still needs to do further work to evaluate the exact direct savings, and if foreign corporations are truly benefiting from the savings related to RMB trade finance. Cost advantages in addition to the relaxation of documentary requirements and administration procedures in China would further help the future growth of RMB for trade finance purposes.‖ Not only does its monthly RMB Tracker continue to provide its thorough open access briefing on how RMB internationalisation affects trade finance, but it launched an in-depth project to measure the relative growth in the international use of the RMB in April 2012.3

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TFR Featured Article Jonathan Batten, professor of finance at Monash University, will be sharing his findings in his session ‗RMB Internationalisation: Is there a tipping point?‘ at Sibos on 19 September at 2pm. Where the clients are While the abolition of the floor on loan rates by the People‘s Bank of China is generally reckoned to be a sign of the central bank‘s commitment towards interest rate liberalisation and market orientated reform, the timeline for full liberalisation is for some, a ―crystal ball prediction‖. Other observers are more certain: HSBC says the RMB will be fully convertible by 2017. 4

For trade finance providers, the trend all eyes are on is the expansion of RMB use outside China and what this means in terms of client service (see Figure 2). Says B of AML‘s Sarjan: ―Adoption is increasing on a regular basis across our client base. The call on whether it will be fourth or fifth is less important than how much corporate and financial institution clients both adopt and work with RMB.‖ Another important factor affecting developments of offshore RMB liquidity is Chinese FDI. Africa, for example, is building up reserves of RMB from the direct investments made in the continent, which can then be used to pay for Chinese imports. Bank of China‘s Cheng Jun sees this ―would create a smooth circulation while avoiding the exchange rate risk of using a third country‘s currency‖.

Clarissa References 1. EuroFinance ‗5-click survey: Offshore Renminbi‘ available from Standard Chartered at http://tinyurl.com/lbgs3ur 2. A useful summary of the rationale and process of the RMB isavailable in Chatham House‘s briefing, ‗Connecting the dots of China‘s Renminbi Strategy‘ at http://tinyurl.com/owuxw5d 3. The RMB reports can be found on www.swift.com athttp://tinyurl.com/os2rwnw 4. HSBC research: ‗The rise of the redback II‘ March 2013

Foundation Certificate in Transport & Logistics Learn the core fundamentals of Transport and Logistics!      

Online Tutorials Certificate of Completion awarded by eBSI Coverage of legal issues Export Packaging requirements Interactive self-paced learning An excellent introduction to this area.

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ICC India Roadshow

ICC India Roadshow – UCP 600 and Documentary Credits New Delhi, Chennai and Mumbai, India

ICC India, in association with JP Morgan Bank, organised three seminars on ―UCP 600 and the Documentary Credit‖ on February 5-8 in New Delhi, Chennai and Mumbai respectively. These seminars were attended by bankers, corporates, exporters, importers and consultants. It provided a comprehensive review of the application of the UCP 600 in the global environment and took a detailed technical look at proven methods of generating discrepancy free transport and commercial documents for presentation under Documentary Letters of Credit based on the UCP 600 rules and international standard banking practice. This seminar series had a broad focus on ―dealing with the challenge of generating and presenting discrepancy free transport documents thus facilitating effective and timely conclusion of contracts and positively managed international trade cash flow and security of payment‖. Innovations in trade finance such as the Bank Payment Obligation (BPO), Standby LC‘s securing ongoing shipments, Technology for Trade, and high profile legal cases and ICC Official Opinions were also explored. The seminars were led by Mr Vincent O‘Brien, Chair, ICC Banking Commission, Market Intelligence Group.

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Advertisement Feature

Trade and Supply Chain Finance Information Resource Providing Essential Updates to Professionals All-round the Globe Trade & Forfaiting Review (TFR) is a leading trade and supply chain finance information resource providing essential updates to professionals all-round the globe. Supported by an editorial board from key disciplines of trade finance, TFR provides thoughtful and insightful features on core topics such as structured trade and commodity finance deals, documentation and regulatory issues and political risk analysis. And TFR prides itself on delivering trade finance news as it breaks online with a monthly review in the print publication. You can subscribe today and benefit from an exclusive 15% discount. Simply call Joe Snodin on +44 (0)20 7566 8210 or visit www.wlrstore.com/tfr and quote reference TFR-EBSI for your discount.

TFR is now in its 15th year and continues to build its reputation as an authoritative resource that does the important job of sifting general finance, commodities, legal, country and risk information for what is relevant to trade finance professionals. We don‘t attempt to replace the mainstream financial press, but rather ensure our readers have what they need to do their deals and advise their clients. The TFR portfolio caters for the busy trade finance professional whatever country they are in and while they are travelling. The package is made up of:     

The official and constantly updated www.tfreview.com (the website is not just the print online but has a distinct identity of its own with frequent news reports) 10 issues a year of the essential TFR magazine – subscribers keep their back issues. A range of specialist supplements looking at key regions and disciplines. Recent examples include our Asia and Supply Chain Finance supplements. An annual Global Contacts Directory of industry figures and organisations arranged into market groups of providers. Regular email newsletters and alerts You can subscribe today and benefit from an exclusive 15% discount. Simply call Joe Snodin on +44 (0)20 7566 8210 or visit www.wlrstore.com/tfr and quote reference TFR-EBSI for your discount.

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eBSI Recent Events

Demand for eBSI experts to deliver seminars and attend conferences around the world has grown dramatically despite financial crisis. Here is a brief overview of some of our more notable appearances since last issue! Dushanbe, Tajikistan

Date: 15/16 October 2012 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

Almaty, Kazakhstan

Date: 18/19 October 2012 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

Ashgabat, Turkmenistan

Date: 5/6 November 2012 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

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eBSI Recent Events

Manila, Philippines

Date: 23 November 2012 Trainer: Vincent O'Brien Topic: Trade Finance Case Studies Client: ADB

Tbilisi, Georgia

Date: 15 December 2012 Trainer: Vincent O'Brien Topic: Introduction to Trade Finance Operations Client: EBRD

Almaty, Kazakhstan

Date: 10-12 December 2012 Trainer: Carlos Bacigalupe Topic: Trade Finance Sales Techniques Client: ADB

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eBSI Recent Events

New Delhi, India

Date: 5 February 2013 Trainer: Vincent O'Brien Topic: UCP 600 and Documentary Credits Client: ICC India

New Delhi, India

Date: 8 February 2013 Trainer: Vincent O'Brien Topic: UCP 600 and Documentary Credits Client: ICC India

Yangong, Myanmar

Date: 18-22 March 2013 Trainer: Vincent O'Brien Topic: Basic to Intermediate Trade Finance Workshop Client: ADB

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eBSI Recent Events

Baku, Azerbaijan

Date: 6 March 2013 Trainer: Vincent O'Brien Topic: Introduction to Trade Finance Client: EBRD

Port-Au_Prince, Haiti

Date: 22-26 April 2013 Trainer: Monique Philippe Topic: Trade Finance Products Client: IFC

Amman, Jordan

Date: 8 May 2013 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

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eBSI Recent Events

Ulaanbaatar, Mongolia

Date: 15 May 2013 Trainer: Vincent O'Brien Topic: ISBP Update Client: EBRD

Casablanca, Morocco

Date: 1 June 2013 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

Cairo, Egypt

Date: 2 June 2013 Trainer: Vincent O'Brien Topic: URDG 758 and Incoterms 2010 Client: EBRD

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eBSI Readers Crossword Solution

Readers Trade Finance Crossword Solution 1

2

E X C H A N O N 5 S A N C T I O N O R 6 7 U S O V E R T L U H L 8 B E 10 T R A N S N K

3

G E 4

S E I

C Q U O T A R R E G N C Y

9

C P O R T U N T 11 C O M M E R C I A L Y

Across 1.

EXCHANGE—The currency risk or an exporter or importer is commonly referred to by trade bankers as foreign _ _ _ _ _ _ _ _ risk. 4. QUOTA—A quantitative restriction on the quantity of goods that than be imported into a country is known as a _ _ _ _ _. 5. SANCTIONS—When a country or trading area prohibits the import of goods or conducting any trading activities with another specified country these prohibitions is known as a trade _ _ _ _ _ _ _ _ _. 6. SOVEREIGN—The risk that an obligation undertaken by a national government may be defaulted on is referred to as _ _ _ _ _ _ _ _ _ risk. 10. TRANSPORT—_ _ _ _ _ _ _ _ _ risk is the risk of loss or damage of goods during transportation between seller and buyer. 11. COMMERCIAL—The risk of non payment by the importer is known as _ _ _ _ _ _ _ _ _ _ risk.

Down 2. 3. 5. 7. 8. 9.

CONTROL—The regulations imposed by central banks in some emerging markets to regulate the availability of hard currency for international payments are known as exchange _ _ _ _ _ _ _ regulations. CURRENCY—The risk that the currency of export will weaken between the time of agreeing the sales contract and the due date for payment is known as _ _ _ _ _ _ _ _ risk. SOUTH—International trade conducted between emerging or developing countries is often referred to as _ _ _ _ _ -south trade. RULES—The INCOTERMS, the UCP, the URC and the URDG are _ _ _ _ _ issued by the International Chamber of Commerce that facilitate certainty in obligations relating to international trade and finance. BANK—When an importer gets his bank to issue a guarantee or letter of credit the exporters payment risk shifts from commercial risk to _ _ _ _ risk. COUNTRY—_ _ _ _ _ _ _ risk arises when a local event or situation within a state means that payment can not be made as a result.

Let us know how you got on with the crossword at info@ebsi.ie!

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Upcoming Events

Global Trade Review The world‘s leading international trade finance and export finance magazine.

2nd Annual West Coast 3rd Annual China Trade & Export Finance Trade & Export Conference Finance Conference San Jose, United States Beijing, China October 9, 2013 October 15-17, 2013

5th Annual West Africa Trade & Commodity Finance Conference Accra, Ghana 23-24 October, 2013

2nd Annual Malaysia Trade & Export Finance Conference Kuala Lumpur, Malaysia November 14, 2013

emeafinance The complete information source for the finance industry in the EMEA region.

Congratulations!

eBSI Upcoming Events: Worldwide: Intakes for eBSI elearning programs 30 September and 29 October 2011 Country Specific: Minsk, Belarus, EBRD ISBP Seminar 9 September 2013 Kiev, Ukraine- EBRD ISBP Seminar 11 September 2013 Frankfurt, Germany – Incoterms® 2010 Seminar 13 September 2013 Dubai, UAE – SIBOS 16-20 September 2013 Dubai, UAE – Dubai CHamber - ISBP Seminar 22 September 2013 Thessaloniki, Greece 25-27 September – IATTO Forum

We would like to Congratulate Mr. Syed Murshedul Islam, who won the ‘China Systems International Trade Specialist Scholarship’ compliments of China Systems Corporation. Syed can now avail of the EUR 2000 scholarship for the ITS Accreditation Program courtesy of China Systems!

Moscow, Russia – EBRD ISBP 30 September 2013 Jakarta, Indonesia- China Systems Training 4-6 October 2013 Vienna, Austria – ICC Banking Commission 21-25 October 2013 If you would like information on any of these events please email events@ebsi.ie and we will send you the relevant details.

To subscribe to this ezine simply go to www.ebsi.ie and we will add you to our subscriber list and add an entry to the draw for a free scholarship for our International Trade Specialist Accreditation worth EUR 2000!

Certificate in Logistics Learn all you need to know about Transport and Logistics!      

Online Tutorials Certified by the Chartered Institute of Logistics& Transport Includes Section on Logistics Customer Service Recognised Internationally Interactive self-paced learning 3 Written Assignments and 1 Online Exam

EBSIEXPORTACADEMY

Contact us for more details: eBSI Export Academy Tel: +353 94 9381444 Fax: +353 94 9381708 Web: http://www.ebsi.ieEmail: info@ebsi.ie

www.ebsi.ie

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Ebsi tradebrief issue 11  

Welcome to our eleventh eZine in PDF Format! eBSI TradeBrief has prepared for you 36 pages of trade related articles, expert commentaries,...

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