Letter of Credits & Documentary Collection in Export Practices

Malaysian Export Academy (HRD Corp Registered Training Provider) Presents

Programme No.: 10001331952

9 & 10 March 2026, Mon-Tues | 9.00 am – 5.00 pm | Crystal Crown Hotel, Petaling Jaya

[HRD Corp Claimable Course]

Introduction

Letters of credit are governed by the “autonomy principle” and “strict compliance doctrine” by the banks. This means the issuing bank will pay the beneficiary on presentation of the requisite documentation even in cases of breach of contract, defective goods and non-performance. Hence, documentary credit and collection should be regarded as an independent contractual tool in facilitating payment only.

Course Objectives

• Understanding the operatives of documentary credit and documentary collection in import export trade.
• Familiarizing the shortfalls and pitfalls of trade payment in the transportation chain from exporter to importer.
• Learning the trade documentation and shipping operation risks from pre-departure to post-arrival of shipment.

Target Audience

A mandatory course for executives in trade payment, finance, sales, export operations, credit
control, order management.

An enriching course for non-finance executives from shipping, logistics, distribution, supply chain
management.

Methodology

A workshop based seminar with practical assignments and case study appreciation.

Course Outlines

1) The Principles of Documentary Credits/Collection and method of payment commonly in use :

• The Open Account, Documentary Drafts, Letters of Credits, Payment in Advance, Cash On Delivery and On Consignment
• The features and differences between Irrevocable Confirmed Credit, Irrevocable Unconfirmed Credit and Revocable Credit

2) The common conditions of L/C and prevailing instruction discrepancies in existence :

• Terms and factors related to shipping operations, trading customaries, documentation of statutory requirements and time limitations
• Terms and factors related to clean and claused bill of lading, insurance provisions and exclusions, conditions of invoice and related documents

3) The Comparison levels of various methods of payment used in international trade  :

• Analyzing the order of decreasing risk to the seller and increasing risk to the buyer, goods availability to buyer, time of payment and implications
• The process of Letter of Credit and Documentary Collection highlighting the critical stage and collusion point between seller and buyer

4) The UCP 600 Implementation & the Standard of Examination Documents from bankers :

• Featuring the compliance issues of the Commercial Invoice, conflicting issues of the Bill of Lading and the Air Waybill in used
• Featuring the constraints issues of Transhipment Allowed and Not Allowed, Cargo on Deck and below Deck, Partial Shipment status

5) The prevailing conditions of using Documentary Collection in international trade:

• The implied undertakings of documentary collection and the respective advantages and disadvantages.
• The URC 522 implications and the types of payment and parties involved in the process.

6) Awareness of types of risks in the financial and commercial circles in international trade :

• The Buyer’s credit risk and the Bank risk in the usage of documentary credit terms of
  payment.
• The Buyer’s credit risk and the Contract risk in breaching the stipulated terms and conditions.

Trainer’s Profile

STEPHEN KUM FOONG SANG (TTT 0484, Feb 2007) Corporate Trainer and Management Consultant

Mr Stephen Kum (MBA, USA) certified trainer by MIM/PSMB. A fellow of The Institute of Freight Association, The Institute of Logistics & Transport, The Institute of Business Administration. Former Vice Chairman of the Persatuan Logistik Selangor and Co-founder of Global Logistician Network (GLN).

He has more than 30 years of hands-on experience in the fields of international trade, global
procurement, freight management, logistics and supply chain operations. His consultancy expertise relates to Incoterms contracting, trade documentation, supplier development, import export risks and cargo transportation strategies. He was the Managing Director of Transatlas Cargo, a global logistics provider with network in UK, USA and Asia Pacific. Held various contractual senior positions as Country Manager of Esprit Shipping (HK), Sales Director with Karl Schroff Associates (US) and Business Development Manager with Port Cargo International (UK).

Participation Fee

RM1, 944 per person for 2 days

Inclusive of  Lunch, Tea-breaks, Course Notes, Certificate of Attendance, and 8% SST.

#Muslim participant will be given 2 meal vouchers during the month of Ramadan

HRD Corp Claimable Course (subject to approval).

Registration Details

Organiser: Malaysian Export Academy Sdn Bhd (MyCoID: 791613A)

Contact Person: Eryna | Email: eryna.mexa@gmail.com

Payment: Kindly make bank transfer payment to Account No: 800 221 0777 of CIMB Bank, payable to Malaysian Export Academy Sdn Bhd.