Contents at a Glance

The First Internet Trade Transaction Manual for Global Commerce is intended to be used in conjunction with the eTrade Finance Platform.  The eTrade Finance Platform contains all of the functions needed to do international transactions with traditional trade finance concepts online using the Internet.

The Global Trade Business Model

The Global Trade Business Model is a standard business model for international trade transactions starting with the sales function, through settlement and payment.

Letters of Credit

Documentary Letters of Credit can be issued and negotiable document sets can be converted to electronic records and submitted over the Internet for examination using the new guidelines of the eUCP 500 Electronic Supplement for Presentation.

Assignment of Proceeds

Assignment of Proceeds of Documentary Letters of Credit allows the first beneficiary to assign the proceeds at negotiation to a third party who is not party to the transaction.

Transferable Letters of Credit

Full or Partial Transfer of Documentary Letters of Credit allows the first beneficiary to transfer all or in part of a Credit to a second beneficiary.

Negotiable Electronic Records

Negotiable Electronic Records can be generated from hardcopy traditional documents (paper) for presentation online over the Internet that complies with the eUCP.

Standby Letters of Credit

Standby Letters of Credit can be applied for, issued and documents presented for negotiation using the eTrade Finance Platform.

Documentary Collections

Documentary Collections are trade finance settlement alternatives to Letters of Credit or Open Account transactions.  Documentary collections include International and Direct Documentary Collections for payment or acceptance.

Open Account Transactions

Open Account transactions can be settled by the presentation of an invoice with the terms and conditions of sale.

Bills of Exchange

Bills of Exchange, or Drafts, can be generated and presented with Documentary and Standby Letters of Credit or Collection transactions.

Global Trade Credits

The Global Trade Credit is a documentary credit issued by a company rather than a bank, and follows the UCP 500 Guidelines for a Documentary Credit.

Incoterms

Incoterms, or International Commercial Terms, are the explained for use with Credits, Collections and Open Account transactions.

UCP 500

The ICC Uniform Customs and Practice for Documentary Credits, Publication No. 500, is the global standard for all commercial Letter of Credit transactions.

eUCP 500

the ICC Supplement to UCP 500 for Electronic Presentation, is the global standard for all commercial Letter of Credit electronic presentations online.

eTrade Finance Platform

The eTrade Finance Platform is an ecommerce trade transaction web service for enabling Importers, Exporters, Freight Forwarders, Carriers and Trade Banks to initiate and complete trade transactions over the Internet.

Trade Action Maps

The Trade Action Maps diagram fundamental trade finance processes into individual trade finance functions, and are hyperlinked into those functions for easy selection.  The eTFP has over  20 Trade Action Maps.

eTrade Functions

The eTrade Functions are explicit steps within the trade transaction process that leads toward title transfer and payment.  The eTFP has over 60 of eTrade Functions.

Appendices

Trade Glossary
Common Abbreviations
Weights & Measures
SWIFT Field Definitions
Digital Certificates

Table of Contents

Introduction

Contents at a Glance

Table of Content

Section 1:  The Global Trade Business Model

·          The Trade Process
·          The eTrade Finance Platform
·          Source Products
·          Basic Ordering Agreement (BOA) – Buyer & Seller
·          Request for Quotation (RFQ) – Buyer
·          Quotation (QTO) – Seller
·          Purchase Order (POR) – Buyer
·          Purchase Order Acknowledgement (POA) – Seller
·          Payment Methods – Buyer & Seller
·          Documentary Letter of Credit
o         Global Trade Credit
o         Documents Payment
o         Documents Acceptance
o         Clean Collection
o         Open Account
·          Proforma Invoice (PIV)
·          Seller’s Letter of Credit Instructions (LCI) – Seller
·          Letter of Credit Application (LCA) – Buyer
·          Documentary Letter of Credit (LDLC) – Banker
·         Letter of Credit Advice (LADV) – Banker
·          Export License
·          Shipper’s Letter of Instructions (SLI) – Selle
·          Basic Transport Documents
·          Packing List (PKL) – Seller
·          Commercial Invoice (INV) – Seller
·          Certificate of Origin (COO) – Seller
·          Beneficiary’s Certificate (BCT) – Seller
·          Quality Certificate (CQA) – Seller
·          Certificate of Insurance (COI) - Seller
·          Ships Register Certificate (SRC) – Seller
·          Bill of Exchange or Draft (BOE) – Seller
·          Transport Bills of Lading (BOL) (AWB) (RWB) (TWB) (CWB) – Seller
·          Letter of Credit Processing Sheet (LCPS) – Seller
·          Letter of Credit Payment  

Section 2:  Letters of Credit

·          Letter of Credit Overview
·          Typical Letter of Credit Process
·          Advised and Confirmed Export Letters of Credit
o         Advising
o         Confirming
o         Assurance of Payment
·          Documents Required Under a Letter of Credit
·          Parties and Roles Under a Letter of Credit
o         Beneficiary
o         Account Party or Applicant
o         Issuing Bank
o         Advising Bank
o         Drawee Bank or Paying Bank
o         Examining Bank
o         Confirming Bank
o         Reimbursing Bank
o         Negotiating Bank
·         The Primary Letter of Credit Terms & Conditions
o         Irrevocable
o         Expiry Date and Issue Date
o         Issuing Bank / Advising Bank
o         Exporter / Importer
o         Value Currency
o         Tolerance
o         Description of Goods / Services
o         Required Documents
o         Payment terms
o         Incoterms
o         Port to Port (Dispatch to Destination)
o         UCP 500 and/or eUCP 500
o         Bank Fees
o         Latest Shipment Date
o         Presentation Date or Stipulation
o         Partial Shipments Allowed / Not Allowed
o         Transshipment Allowed / Not Allowed
o         Reimbursement Instructions
o         Availability
o         Confirming Bank
o         Reimbursing Bank
·          The Role of the Freight Forwarder
·          Preparing Price Quotation
·          Regulations
·          Documentation
·          Presentation
·          Shipside Bonds 

Section 3:  Letter of Credit Assignment of Proceeds

·          Redirecting the Proceeds of a Letter of Credit
·          Letter of Credit Criteria
·          Assignment of Proceeds Criteria 

Section 4:  Transferable Letter of Credit

·          Transferable Letter of Credit
·          How is a Transferable Letter of Credit Used
·          Conditions for Transferring Letters of Credit
·          Options for Transferring a Letter of Credit
o         Entire Transfer of a Letter of Credit
o         Partial Transfer of a Letter of Credit
         Transferring the Letter of Credit
o         Entire Transfer
o         Partial Transfer
·          Benefits and Risks of Using a Transferable Letter of Credit
o         For the Seller
o         For the Supplier
o         For the Buyer
·          Confidentiality Issues
o         Confidentiality of the Buyer’s Identity
o         Confidentiality of the Supplier’s Identity
o         Confidentiality of the Seller’s Portion of the Proceeds
·          Shipment Insurance
·          Customs Invoice
·          Fax to Buyer
·          Documents to Buyer
·          Legalized Documents
·          Air Shipment
·          Supplier Documents
·          Other Considerations 

Section 5: Generation of Negotiable Electronic Records

Section 6:  Standby Letters of Credit

·          Standby Letter of Credit Overview
·          Common Uses of Standby Letters of Credit
o         Bid Bonds
o         Progress Payment Guarantees
o         Insurance Deductible / Self-Insurance Letter of Credit
o         Support of Commercial Debt 

Section 7:  Documentary Collections

·          Collection Overview
·          Characteristics of a Collection
·          Types of Documentary Collections
o         Documents Payment
o         Documents Acceptance
o         Clean Collection
o         International Documents Payment or Acceptance
o         Direct Documents Payment or Acceptance
·          Parties Involved in a Collection Transaction
·          Shipment by Airfreight
·          Steps in a Collection
·          Uniform Rules of Collections 

Section 8:  Open Account Transactions

Section 9:  Bills of Exchange & Bankers Acceptances

·          Bill of Exchange Overview
·          Sight Drafts
·          Time Drafts
·          Clean Drafts
·          Documentary Drafts
·          Parties to the Draft
·          Negotiability
·          Endorsements
o         Blank Endorsement
o         Special Endorsement
o         Restrictive or Conditional Endorsement
o         Qualified Endorsement
·          Bankers Acceptance
·          Trade Acceptance
·          Documentary and Clean Bankers Acceptances
·          Eligible Bankers Acceptances
o         Trade Transaction
o         Duration
o         Financing Amount
o         Self-Liquidating
o         Current Transaction
o         Length of Shipment Time
o         Double Financing 
·          Draft Discounting
·          Bill of Exchange Fields
o         Date
o         Number
o         Place of Drawing
o         At (tenor)
o         Pay to Order of
o         Amount
o         Value Received and Charge to Account of
o         To
o         Sight Draft
o         Time Draft
o         Drawer 

Section 10: Global Trade Credits

Section 11: Incoterms

·          INCOTERMS – International Commercial Terms
·          EXW – Ex Works
·          FCA – Free Carrier
·          FAS – Free Alongside Ship
·          FOB – Free On Board
·          CFR – Cost and Freight
·          CIF – Cost Insurance and Freight
·          CPT – Carriage Paid To
·          CIP – Carriage and Insurance Paid To
·          DAF – Delivered at Frontier
·          DES – Delivered Ex-Ship
·          DEQ – Delivered Ex Quay
·          DDU – Delivered Duty Unpaid
·          DDP – Delivered Duty Paid 

Section 12: UCP 500

·          UCP 500 – Uniform Customs and Practice for Documentary Credits
·          Article 1:          Application of UCP
·          Article 2:          Meaning of Credit
·          Article 3:          Credits vs. Contracts
·          Article 4:          Documents vs. Goods / Services / Performance
·          Article 5:          Instructions to Issue / Amend Credits
·          Article 6:          Revocable vs. Irrevocable Credits
·          Article 7:          Advising Bank’s Liability
·          Article 8:          Revocation of a Credit
·          Article 9:          Liability of Issuing and Confirming Banks
·          Article 10:        Types of Credits
·          Article 11:        Teletransmitted and Pre-Advised Credits
·          Article 12:        Incomplete or Unclear Instructions
·          Article 13:        Standard for Examination of Documents
·          Article 14:        Discrepant Documents and Notice
·          Article 15:        Disclaimer on Effectiveness of Documents
·          Article 16:        Disclaimer on the Teletransmission of Documents
·          Article 17:        Force Majeure
·          Article 18:        Disclaimer for Acts of an Instructed Party
·          Article 19:        Bank to Bank Reimbursement Arrangements
·          Article 20:        Ambiguity as to Issuers of Documents
·          Article 21:        Unspecified Issuers of Contents of Documents
·          Article 22:        Issuance Date on Documents vs. Credit Date
·          Article 23:        Transport Documents
·          Article 24:        Non-Negotiable Sea Waybill
·          Article 25:        Charter Party Bill of Lading
·          Article 26:        Multimodal Transport Document
·          Article 27:        Air Transport Document
·          Article 28:        Road, Rail or Inland Waterway Transport Document
·          Article 29:        Courier and Postal Receipts
·          Article 30:        Transport Document Issued by Freight Forwarder
·          Article 31:        On Deck, Shippers Load and Count, Name of Consignor
·          Article 32:        Clean Transport Documents
·          Article 33:        Freight Payable / Prepaid Transport Documents
·          Article 34:        Insurance Documents
·          Article 35:        Type of Insurance Cover
·          Article 36:        All Risk Insurance Cover
·          Article 37:        Commercial Invoice
·          Article 38:        Other Documents
·          Article 39:        Miscellaneous Documents
·          Article 40:        Partial Shipments / Drawings
·          Article 41:        Installment Shipments / Drawings
·          Article 42:        Expiry Date and Place for Presentation of Documents
·          Article 43:        Limitation on the Expiry Date
·          Article 44:        Extension of Expiry Date
·          Article 45:        Hours of Presentation
·          Article 46:        General Expressions as to Dates
·          Article 47:        Date Terminology for Periods of Shipment
·          Article 48:        Transferable Credit
·          Article 49:        Assignment of Proceeds 

Section 13: eUCP 500

eUCP 500 – Supplement to UCP500 for Electronic Presentations Overview
·          Article e1:        Scope of eUCP                         
·          Article e2:        Relationship of the eUCP to the UCP
·          Article e3:        Definitions
·          Article e4:        Format
·          Article e5:        Presentations   
·          Article e6:        Examination
·          Article e7:        Notice of Refusal
·          Article e8:        Originals and Copies
·          Article e9:        Date of Issuance
·          Article e10:      Transport
·          Article e11:      Corruption of an Electronic Record After Presentation
·          Article e12:      Additional disclaimer of Liability for Presentation 

Section 14: eTrade Finance Platform

·          eTrade Finance Platform
·          Basic Functions
·          Trade Action Maps
·          eTrade Functions
·          Operational & Cost Benefits
·          eTFP Platform Capabilities
·          eTFP Access
·          eTFP Technology
·          Computer Requirements
·          eTrade Functions
·          eUCP Compatibility
·          Trade Function Use
·          How to do Online Trade
·          Sample Files for Training
·          Technical Support Center
·          Data and Network Security
·          Patents, Trademarks and Copyrights

Section 15: Trade Action Maps

·          A1: Basic Ordering Agreement
·          A2: Sale and Purchase
·          A3: Letter of Credit Issue (Seller)
·          A4: Letter of Credit Issue (Buyer)
·          A5: Standby Credit Issue
·          A6: Trade Credit Issue
·          A7: Letter of Credit Amendment
·          A8: Standby Credit Amendment
·          A9: LC Assignment of Proceeds
·          A10:    Letter of Credit Partial Transfer
·          A11:    Cargo Shipment Instructions
·          A12:    Letter of Credit Documents Wizard
·          A13:    Standby Letter of Credit Documents
·          A14:    LC Document Set Examination & Payment
·          A15:    LC Document Examination & Acceptance
·          A16:    Bill of Exchange Purchase (Draft Discount)
·          A17:    International Collection
·          A18:    Clean Collection (Advance Payment)
·          A19:    Direct Collection
·          A20:    Open Account
·          A21:    Export Receivables Financing
·          A22:    International Bank Forms·          A23:    Freight Forwarders & Cargo Carriers
·          A25:    Sample BOA File for demonstration and training. 

Section 16: eTrade Functions

Export Seller Functions
·          F1:      Seller Contact Information (REGS)
·          F2:      Basic Ordering Agreement (BOA)
·          F3:      Quotation (QTO)
·          F4:      Proforma Invoice (PIV)
·          F5:      Letter of Credit Instruction Sheet (LCI)
·          F6:      PO Acknowledgement (POA)
·          F7:      Packing List      (PKL)
·          F8:      Commercial Invoice (INV)
·          F9:      Bill of Exchange (Draft) (BOE)
·          F10:    Shipper’s Letter of Instructions (SLI)
·          F11:    Ocean Bill of Lading (BOL)
·          F12:    Air Waybill (AWB)
·          F13:    Rail Waybill (RWB)
·          F14: Truck Waybill (TWB)
·          F15:    Courier Receipt (CWB)
 
Export LC Management Functions

·          F16:    LC Documents Generation Wizard (LDNW)
·          F17:    LC Documents Presentation (LDN)
·          F18:    LC Assignment of Proceeds Request (LAOPR)
·          F19:    LC Transfer Request Application (LTA)
·          F20:    Draft Purchase Agreement (DPA)
·          F21:    AVG Letter of Credit Processing Sheet (LCPS)
·          F22:    Seller Transaction Status (STSR)
·          F23:    Standby Documents Presentation (LSLP) 

Export Collection Functions

·          F24:    International Documentary Collection (CPA)
·          F25:    Direct Documentary Collection (CDC)
·          Export Support Functions
·          F26:    NAFTA Certificate of Origin (COON)
·          F27:    Certificate of Origin – Chamber of Commerce (COO)
·          F27.1   Certificate of Origin – Manufacture (COOM)
·          F27.2   Certificate of Conformity – Manufacture (COC)
·          F28:    Ships Register Certificate (SRC)
·          F29:    Quality Certificate (CQA)
·          F30:    Weight List (CWT)
·          F31:    Beneficiary Certificate (BCT)
·          F32:    Shipper’s Export Declaration (SED)

Import Buyer Functions

·          F33:    Buyer Contact Information (REGB)
·          F34:    Basic Ordering Agreement (BOA)
·          F35:    Request for Quotation (RFQ)
·          F36:    Purchase Order (POR)

Import Buyer Functions

·          F37:    Letter of Credit Application (LAPL)
·          F38:    Letter of Credit Amendment Application (LAMA)
·          F39:    Letter of Credit Security Agreement (LSA)
·          F40:    Bank Letter of Indemnity / Consent (LIC)
·          F41:    Buyer Transaction Status Report (LCI)
·          F42:    Standby Letter of Credit Application (LSCA)
·          F43:    Standby Letter of Credit Amendment Application (LSAR)

Trade Bank Functions

·          F44:    Documentary Letter of Credit (LDLC)
·          F45:    Documentary Letter of Credit Advice (LADV)
·          F46:    Documentary Letter of Credit Amendment (LAMD)
·          F47:    Letter of Credit Assignment of Proceeds (LAOP)
·          F48:    Standby Letter of Credit (LSLC)
·          F49:    Standby Letter of Credit Amendment (LSAMD)
·          F50:    Computer Aided Examination & Negotiation (CAEN)
·          F51:    Examination of Documents Report (LED)
·          F52:    Wire Transfer Request (WTR)
·          F53:    Advice of Payment (LAP)
·          F54:    Advice of Acceptance (LAA)

Administration Functions

·          F55:    Seller Message (EMSB)
·          F56:    Buyer Message (EMBS)
·          F57:    Assignee Contact Information (REGAS)
·          F58:    Buyer Bank Contact Information (RBKB)
·          F59:    Seller Bank Contact Information (RBKS)
·          F60:    Logistics Contact Information (REGL)
·          F61:    Agent Contact Information (REGA) 

Appendices
A          Trade Glossary
B.         SWIFT Field Definitions
C.         Weights & Measures
D.         Common Abbreviations
E.         Digital Certificate
F.         Frequently Asked Questions