Trade Finance Q&A 19-09-2024 Emerging Leaders PDF

Trade Finance (Q & A) 19-09-2024 1. Advance payment 0% risk on exporter and 100% Risk on importer. (TRUE) 2. Open account 0% risk on importer and 100% risk on exporter. (TRUE) 3. Documentary collection called URC522 and issued by ICC. (TRUE) 4. Letter of c...

Trade Finance (Q & A) 19-09-2024 1. Advance payment 0% risk on exporter and 100% Risk on importer. (TRUE) 2. Open account 0% risk on importer and 100% risk on exporter. (TRUE) 3. Documentary collection called URC522 and issued by ICC. (TRUE) 4. Letter of credit rules mentioned in UCP600 and ISBP. (TRUE) 5. Letter of credit means irrevocable payment undertaking from the advising bank to beneficiary. (FALSE) from the issuing bank 6. In letter of credit the main parties are issuing bank, beneficiary and confirming bank if any (TRUE) 7. In letter of credit the risk of issuing bank and its country risk is on the beneficiary. 8. The issuing bank has 5 banking days following the date of receipt to examine the documents. (TRUE) 9. An issuing bank is obliged to pay against complying documents and the goods received in order (False) complying documents only. 10.All LC under UCP 600 are irrevocable. (TRUE) 11.The red clause documentary credit was so called in the past when documentary credits were sent in telex or paper and quoted the advance payment condition in red ink. (TRUE) 12.Min Insurance 110% of total value of shipped goods. (TRUE) 1  ‫)‪13.The 4 terms for waterway transport: FAS, FOB, CFR, CI. (TRUE‬‬ ‫‪Inco terms 2020: 11 terms‬‬ ‫اإلستالم من على باب المصنع ‪1. EXW minimum risk on seller and max risk on buyer‬‬ ‫تسليم ناقل المصنع هيسلم البضاعة لشركة الشحن ‪2. FCA‬‬ ‫التسليم بجانب السفينة ‪3. FAS‬‬ ‫تسليم على ظهر السفينة ‪4. FOB‬‬ ‫البايع هيدفع الشحن ‪5. CFR‬‬ ‫البايع دافع الشحن والتأمين ‪6. CIF‬‬ ‫بس مش بحري ‪cfr‬زي ال ‪7. CPT‬‬ ‫التسليم عند المكان المتفق عليه بس التفريغ على المشتري ‪8. CIP‬‬ ‫البايع عليه التوصيل والتفريغ ‪9. DPU‬‬ ‫التسليم عند المشتري ‪10.DAP delivery at place‬‬ ‫‪ max risk on seller‬التسليم و الشحن و الضرايب على البائع و التسليم عند المشتري ‪11.DPP‬‬ ‫‪2‬‬  ICC: International Chamber of Commerce. SWIFT: Society Worldwide Interbank Financial Telecommunications. URC522 issued by ICC. DP: Documentary against payment = Cash against documents. DA: Documentary against Acceptance =Deferred payment. Irrevocable:‫غير قابل لإللغاء‬ Unconfirmed:‫غير معزز‬ ▪ Direct collection & Clean Collection (‫)مش جاي في اإلمتحان‬ ▪ Nominating bank (‫)مش جاي في اإلمتحان‬ 3