Complete Trade Finance Course

Introduction

Dive into the essentials of Trade Finance with this comprehensive course tailored for professionals, students, and anyone keen to understand global trade mechanisms. This course provides a detailed overview of trade finance, regulatory frameworks, and critical operational aspects, ensuring you are well-equipped to navigate the complexities of international trade.

Course Highlights

• International Trade Environment and Methods of Settlements
• Explore global trade dynamics and various methods like Letters of Credit, Bills of Exchange, and Documentary Collections.
• Foreign Exchange Management Act (FEMA), 1999
• Gain insights into FEMA regulations governing foreign exchange transactions in India.
• Export Finance
• Understand pre-shipment and post-shipment finance solutions for exporters.
• Import Finance and Handling of Imports
• Learn about import financing options and best practices for handling imports effectively.
• Uniform Customs and Practice for Documentary Credits (UCPDC)
• Master UCPDC guidelines that govern Letters of Credit in international trade.
• Non-Resident Accounts and Foreign Currency Accounts
• Get a clear understanding of NRE, NRO, FCNR accounts, and their significance in trade finance.
• Remittances (IR and OR including Liberalized Remittance Scheme)
• Explore inward and outward remittance mechanisms, including the Liberalized Remittance Scheme (LRS).
• Trade-Based Money Laundering (TBML)
• Learn to identify and mitigate risks associated with TBML in trade finance operations.
• Bank Guarantees (BG) & Standby Letters of Credit (SBLC)
• Learn the structure, application, and risk mitigation strategies associated with BGs and SBLCs in global trade.
• Uniform Rules for Demand Guarantees (URDG) - ICC Pub. No. 758
• Deepen your understanding of URDG guidelines governing demand guarantees and their practical implications.
• Overseas Direct Investment (ODI) & Foreign Direct Investment (FDI)
• Understand the regulations, documentation, and strategic considerations for ODI and FDI in trade finance.
• External Commercial Borrowings (ECB)
• Explore the role of ECBs in financing large-scale trade and business operations globally.
• Supply Chain Finance
• Learn about supply chain finance solutions, including factoring, reverse factoring, and dynamic discounting, to optimize working capital.

Benefits of the Programme

• Understand Global Trade Dynamics: Learn the foundational principles of international trade.
• Manage Risks and Compliance: Gain insights into regulatory frameworks like FEMA, UCPDC, and AML practices.
• Enhance Operational Skills: Master the use of trade finance tools like letters of credit, bank guarantees, and remittance mechanisms.
• Boost Career Opportunities: Certification provides a competitive edge in trade finance roles.

Self-Learning Program - Best Suited For

• Trade and Finance Professionals: Bankers, trade officers, and compliance specialists.
• Entrepreneurs & SMEs: Business owners managing cross-border transactions.
• Students & Academics: Ideal for those studying international business, finance, or trade law.
• Legal and Financial Advisors: Advisors assisting clients in trade finance operations.

Programme Content Overview

1. International Trade Environment and Methods of Settlements

• Overview of global trade dynamics and their impact on economies.
• Key trade instruments: letters of credit, documentary collections, and bank guarantees.
• Comparison of settlement methods: open account, advance payment, and consignment.
• Role of trade agreements (e.g., WTO, FTA) in shaping international trade policies.
• Managing trade risks: political, credit, and currency risks.
• Digital platforms and their influence on modern trade settlements.

2. Foreign Exchange Management Act (FEMA), 1999

• Objectives and scope of FEMA in regulating foreign exchange transactions.
• Key definitions: current account and capital account transactions.
• Role of Authorized Dealers (AD) in facilitating foreign exchange.
• Documentation requirements for export and import transactions.
• Penalties for non-compliance under FEMA regulations.
• RBI circulars and updates impacting cross-border trade operations.

3. Export Finance

• Pre-shipment finance: Packing credit, factoring, and advance payments.
• Post-shipment finance: Export bills discounting, FDBP, and forfaiting. Role of EXIM Bank and ECGC in promoting exports.
• Export credit insurance: Coverage and claim processes. Understanding export incentives under India’s Foreign Trade Policy (FTP).
• Case studies: Real-world application of export finance tools.

4. Import Finance and Handling of Imports

• Funded facilities: Working capital loans, term loans for capital goods.
• Non-funded facilities: Import letters of credit, bank guarantees, and standby LCs.
• Customs clearance process and associated documentation.
• Key regulations: Importer Exporter Code (IEC) and IDPMS compliance.
• Handling high-sea sales and special import cases (e.g., replacements, non-physical goods).
• Risk management: Exchange rate risks and supplier defaults.

5. Uniform Customs and Practice for Documentary Credits (UCPDC)

• Overview of UCP 600 and its significance in international trade.
• Types of letters of credit: Confirmed, revolving, transferable, and back-to-back LCs.
• Examination of documents under UCP 600 guidelines.
• Common discrepancies in documentary credits and how to resolve them.
• Understanding ISBP (International Standard Banking Practice) guidelines.
• Practical scenarios: Using UCP rules for trade dispute resolution.

6. Non-Resident Accounts and Foreign Currency Accounts

• Features and benefits of NRO, NRE, and FCNR-B accounts for NRIs.
• Specialized accounts: SNRR, Diamond Dollar, and EEFC accounts.
• Tax implications and repatriation rules for non-resident accounts.
• Opening and maintaining foreign currency accounts under RBI guidelines.
• Currency risk management for businesses using foreign accounts.
• Case studies: Best practices in managing cross-border accounts.

7. Remittances (Inward, Outward, and Liberalized Remittance Scheme - LRS)

• Understanding inward remittance mechanisms: SWIFT, MTSS, and RDA.
• Permissible outward remittances under LRS: Education, travel, and investments.
• Documentation and compliance requirements for remittances under FEMA.
• Exchange control regulations for trade-related remittances.
• Role of banking channels and digital platforms in facilitating remittances.
• Case studies: Challenges and solutions in managing cross-border remittances.

8. Trade-Based Money Laundering (TBML)

• Definition and red flags for identifying TBML activities.
• Techniques used in TBML: Over/under invoicing, multiple invoicing, and false descriptions.
• Regulatory guidelines for combating TBML in international trade.
• Role of banks and financial institutions in detecting suspicious activities.
• AML (Anti-Money Laundering) compliance: Processes and penalties.
• Case studies: High-profile TBML cases and lessons learned.

 9. Bank Guarantees (BG) & Standby Letters of Credit (SBLC)

• Structure and types of BGs: Performance guarantees, advance payment guarantees, and bid bonds.
• Key features and applications of SBLCs in global trade transactions.
• Comparison of BGs and SBLCs: When to use which instrument.
• Risk mitigation strategies for banks and businesses using these instruments.
• Legal implications and dispute resolution in BG and SBLC transactions.
• Real-world case studies: Successful applications of BGs and SBLCs.

10. Uniform Rules for Demand Guarantees (URDG) – ICC Pub. No. 758

• Introduction to URDG 758 and its role in standardizing demand guarantees.
• Key articles of URDG 758: Independence principle, document examination, and claim rules.
• Practical applications of URDG in international trade and infrastructure projects.
• Common discrepancies and how to resolve them under URDG guidelines.
• Case studies: Real-life scenarios of URDG application in cross-border guarantees.
• Updates and best practices for staying compliant with URDG standards.

 11. Overseas Direct Investment (ODI) & Foreign Direct Investment (FDI)

•  Definitions and distinctions between ODI and FDI in the context of trade finance.
•  Regulatory frameworks governing ODI and FDI, including FEMA and RBI guidelines.
•  Documentation and compliance requirements for cross-border investments.
•  Strategic considerations for businesses engaging in ODI and FDI.
•  Tax implications and double taxation avoidance agreements (DTAA).
•  Case studies: Successful ODI and FDI projects by Indian businesses.

12. External Commercial Borrowings (ECB)

• Definition and types of ECB: Automatic route vs. approval route.
• Role of ECBs in financing large-scale trade and business operations.
• Eligibility criteria for borrowers and lenders in ECB transactions.
• Key compliance requirements: Loan Registration Number (LRN) and reporting to RBI.
• Managing risks associated with ECB, including currency risk and interest rate exposure.
• Case studies: Leveraging ECB for infrastructure and industrial projects.

13. Supply Chain Finance

•  • Overview of supply chain finance (SCF) solutions and their role in global trade.
•  • Key SCF tools: Factoring, reverse factoring, dynamic discounting, and invoice financing.
•  • Benefits of SCF for buyers, suppliers, and financial institutions.
•  • Integration of SCF solutions with digital platforms for enhanced efficiency.
•  • Risk management strategies in SCF transactions.
•  • Case studies: Successful implementation of SCF in multinational supply chains.

Study material of Mastering Trade Finance Basics: From International Trade to TBML prepared by Market Experts available on SIFL Learning platform (SIFL-LMS).

Video Presentation for explanation of the Topics Presentation–wise SIFL Mock/Assessment test.

One SIFL Final tests for the Mastering Trade Finance Basics: From International Trade to TBML

Self-learning training program with access to the SIFL Learning Platform (SIFL-LMS)

Course Fees- INR 40,000 INR 10,000

USD 549 USD 200

LMS Availability: 120 Days.