Course Overview

Practice of International Trade and Documentary Credit 

Instructor(s):

• Ms. Rozina Akter  : Assistant Professor, Dept. of Business Administration,Daffodil International University

• Tapas Saha  : AVP, Global Trade Solutions, HSBC Bangladesh.

Duration: 8 Weeks (Approx. 20 hours total)

Mode of Delivery: Blended (Online theory + Extensive Physical Fieldwork at an Apiary/DIU Green Campus) | 

Class Day: Weekends (Friday/Saturday) to facilitate outdoor field visits. 

Course Description

This course equips participants with a fundamental understanding of trade methods, the mechanics of Documentary Credits (L/C), and the application of international rules such as UCP 600 and Incoterms 2020. The curriculum focuses deeply on trade finance, mandatory documentation, and maintaining strict compliance with Bangladesh Bank guidelines. 

Evidence of Demand

International trade methods, particularly Documentary Credit (L/C), account for 11-15% of global trade. In Bangladesh, banking is the conduit for cross-border capital; therefore, professionals must master ICC rules and local regulations (GFET, Import Policy Order) to minimize disputes, especially in the crucial RMG sector. 

Purpose and Objectives

To equip participants with a fundamental understanding of trade methods, the mechanics of Documentary Credits, and the application of international rules like UCP 600 and Incoterms 2020. The course focuses on trade finance, documentation, and compliance with Bangladesh Bank guidelines.

Course Content & Class Plan (Modules)

• Module 1: Introduction to Trade: Methods of Trade (Cash in Advance, Open Account, Documentary Collection, and Documentary Credit) and basic principles of L/C.

• Module 2: Regulatory Framework: UCP 600, ISBP 800, URR 725, Incoterms 2020, and Local Regulations including GFET, OIMS, and Import Policy Order (2024-2027).

• Module 3: L/C Mechanics & Parties: Roles of Issuing Bank, Advising Bank, Beneficiary, Confirming Bank, and Reimbursement Bank; MT700 structure and L/C lifecycle.

• Module 4: Documentation & Compliance: Mandatory Checklists (LCAF, Proforma Invoice, Commercial Invoice, Packing List, Insurance, and Transport Docs/Bill of Lading) and handling discrepancies.

• Module 5: Trade Finance & Settlement: Export Financing (Negotiation, Prepay) and Import Financing (UPAS, EDF, LTR, LIM), along with the RMG Engine (Back-to-Back LCs).

Practical & Field Work

While delivered online, practical elements include navigating mandatory checklists (LCAF, Invoices, Transport Docs), structuring MT700 formats, and practical exercises in handling and resolving documentation discrepancies under UCP 600.

Learning Outcomes

Upon successful completion, participants will be able to:

• Understand international trade activities.

• Master L/C issuance and document examination under UCP 600.

• Analyze pre and post-shipment financing.

• Implement compliance with Bangladesh Bank foreign exchange guidelines.

Target Audience & Requirements

Target Audience:

• Professionals without a banking background.

• Business graduates aiming for trade desk roles.

• Entrepreneurs managing export/import operations.

Entry Requirements:

• Prospective candidates include graduate and post-graduate students, preferably from a business background.

Career Pathways

Opportunities exist in Foreign Trade departments of private and public banks, as well as roles within logistics and trade-based corporations.

Assessment Criteria

• Quizzes: Multiple-choice questions (MCQs) via quiz.

• Passing Mark: A minimum of 70% correct answers is required to pass.

Tools & Resources

• Online delivery platform and infrastructure.

Financial Information & Certification

• Tentative Course Fee: Tk. 2,000 per participant.

• Certification: Certification is implied upon successful completion of the assessment criteria (minimum 70% score on MCQs).