Advance Trade Finance: Mastering Global Trade

Introduction

Elevate your knowledge of trade finance with this in-depth course designed for professionals and students seeking expertise in advanced concepts of global trade and financial mechanisms. This course delves into sophisticated topics, regulatory frameworks, and innovative solutions to help you manage complex trade transactions with confidence.

Course Highlights

  • Foreign Exchange Management Act (FEMA), 1999
Navigate the regulatory landscape of foreign exchange transactions in India with a focus on trade compliance.
  • Export Finance
Explore advanced financing solutions, including forfaiting, factoring, and export credit insurance schemes.
  • Import Finance and Handling of Imports
Master the nuances of financing imports, including usance bills, customs clearance, and mitigating foreign exchange risks.
  • Uniform Customs and Practice for Documentary Credits (UCPDC)
Gain expert knowledge of UCPDC rules for Letters of Credit and ensure compliance in documentary trade transactions.
  • 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.
  • Trade-Based Money Laundering (TBML)
Develop the skills to identify, prevent, and report TBML activities in trade finance.
  • Supply Chain Finance
Learn about supply chain finance solutions, including factoring, reverse factoring, and dynamic discounting, to optimize working capital.

Benefits of the Programme
  • Global Expertise: Master advanced financial instruments and trade regulations.
  • Career Advancement: Certification opens doors to better opportunities in trade and finance.
  • Risk Management: Learn to mitigate risks using trade finance tools.
  • Regulatory Compliance: Stay updated with FEMA, RBI, and ICC guidelines.
Self-Learning Program - Best Suited For
  • Finance Professionals: Banking, finance, and trade professionals seeking advanced expertise.
  • Corporate Leaders: Entrepreneurs and business owners involved in cross-border trade.
  • Students & Academics: Students and graduates aiming to build careers in trade finance.
  • Legal and Compliance Advisors: Compliance and risk management professionals in trade operations.

Programme Content Overview

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
Course Materials include –
Study material of Advanced Trade Finance: Mastering Global Trade 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 Advanced Trade Finance: Mastering Global Trade 
Self-learning training program with access to the SIFL Learning Platform (SIFL-LMS)
Course Fees- INR 30,000 INR 7,500
USD 250 USD 110
LMS Availability: 90 Days.

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