Documentary Credit forms the foundation of the trade finance services offered by most banks across the world. Despite its common usage and its existence spanning hundreds of years, banks, applicants and beneficiaries experience issues in its handling every day of every week. Some of these issues are avoidable, some are down to lack of understanding of the needs of the product, but others are due to a misapplication of the underlying rules and practices.
It is true to say that most rules that are developed or revised do not come with a guide as to how to apply them in any given situation. It is often left to the users to apply their own interpretation and view on practice. This, naturally, creates an environment where disputes materialize. Most are resolved satisfactorily with the only drawback being a short delay in settlement. However, there are a number for which no amicable solution is forthcoming and it’s left to a court or arbitration panel to make a decision. In most cases, the courts and arbitrators decision will reflect international banking practice for the respective product.
This workshop, spanning two days, will look at some of the areas where disputes often arise in the area of examination of documents routinely presented under documentary credits and provide suggested solutions for consideration and implementation by the participants.
Trade finance practices lead to new issues almost every day of the week. Keeping abreast of these issues and the remedies that are available are critical for any bank, importer or exporter.
