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eDTTworkspace.com

eDigital Trade Transactions Workspace - Digital Global Standard Initiative

Our vision is to enable digital trade transactions for everyone

Dedicated to Matthew Andersen

Sponsor: The eDTTworkspace is sponsored by the San Diego and Imperial District Export Council (SDIDEC) empowering the global trade community to go digital under ICC eRules. Our core collaborator and supporting organization is EDC SBDC through their LA SBDC Go Global trade program. Other supporting organizations include: Milken Institute; Organization of Women in International Trade (OWIT); World Trade Center San Diego (WTC/SD); and Additional Supporting Organizations. Project Leader: Simona Racek: Simona@jdts.us and Team Leader: John.Dunlop@ITFglobal.ie 

eDTTworkspace.com: The eDTTworkspace is a Digital Global Standard initiative that enables digital trade for Small & Medium Enterprise (SME) buyers and sellers globally. Our vision is to enable trade for everyone, everywhere. Our mission is to increase international business and make trade more inclusive by reducing its cost and complexity. The objective is to become the Digital Global Standard for managing trade transactions by using digital interactive cloud shared trade transaction documents with a common business method, video conferencing, and ICC eRules and Guidelines. The eDTT Workspace is intended for common use between importers, exporters, freight forwarders, logistic carriers and service providers.  Digital Trade Transactions for SMEs Worldwide.

Authority: The eDTTworkspace.com implements the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0), in effect 1 July 2019; the ICC Uniform Rules for Collections (URC 522) Supplement for Electronic Presentation Version 1.0 (eURC v1.0). in effect 1 July 2019; and the ICC Uniform Rules for Digital Trade Transactions (URDTT) Version 1.0 in effect 1 October 2021.

ICC eRules Implementation (URDTT & eUCP): The eDTTworkspace.com implements digital trade transaction documents (templates) that conform to ICC eRules and Guidelines, following the Global Business Method procedure. There is no cost to use this global digital standard.

    eDTTplatform.com & LOGIN - Digital Trade Transaction Platform

    eDTTworkspace.com Academy  &  Capstone Training

Task

Responsible

Party

eDTTw

Code

eDTTworkspace.com Documents

eDTTw

Templates

(4.24)

eDTTw

Examples

eDTTw

Webinars    

0

Buyer
Seller

eDTT
WS

How to Use the eDDT Workspace

eDTT Workspace

How to Use

eDTT

Workspace

Presentation

eDTT

Workspace

Webinar

0

Buyer
Seller

URDTT

Uniform Rules for Digital

Trade Transactions URDTT Rules

ICC URDTT
Implementation

URDTT

Presentation

URDTT Webinar   

0

Buyer
Seller

GBM

Global Business Method IX Manual (scroll below)

GBM Flow 

Diagram

GBM Presentation

GBM Webinar

30

Seller

Buyer

CPF

Company Profile Form and Application for Membership

Company Profile Form
Template

CPF Example

CPF Webinar

1

Buyer
Seller

BOA

Basic Ordering Agreement

BOA Template

BOA Example 

BOA Webinar    

2

Buyer

RFQ

Request For Quotation

RFQ Template

RFQ Example

RFQ Webinar  

3

Seller

QTO

Quotation

QTO Template

QTO Example

QTO Webinar

4

Buyer

POR

Purchase Order

POR Template

POR Example

POR Webinar

5

Seller

POA

Purchase Order Acknowledgement

POA Template

POA Example

POA Webinar

6

Seller

PIV

Proforma Invoice

PIV Template

PIV Example

PIV Webinar

7

Seller

TPI

Digital Trade Payment Instructions

TPI Template

TPI Example

TPI Webinar

8

Buyer

APP

Digital Trade Payment Application

APP Template

APP Example

APP Webinar

9

Buyer
Seller

DTP

Digital Trade Payment

DTP Template

DTP Example

DTP Webinar

10

Seller

TCI

eUCP Documentary Letter of Credit Instructions

TCI Template

TCI Example

TCI Webinar

11

Buyer

APC

eUCP Documentary Letter of Credit Application

APC Template

APC Example

APC Webinar

12

Buyer
Seller

DLC

eUCP Documentary Letter of Credit UCP /  eUCP

eDLC Template

eDLC Example

eDLC Webinar

13

Buyer
Seller

AMD

eDLC Amendment Application

AMD Template

AMD Example

AMD Webinar

14

Seller

TDC

eDLC Transfer Application

TDC Template

TDC Example

TDC Webinar

15

Seller

AOP

eDLC Assignment of Proceeds Request

AOP Template

AOP Example

AOP Webinar

16

Seller

SLI

Shipper's Letter of Instructions

SLI Template

SLI Example

SLI Webinar

17

Logistics

BOL

Transport Document

BOL Template

BOLExample

BOL Webinar

18

Seller

PKL

Packing List

PKL Template

PKL Example

PKL Webinar

19

Seller

INV

Invoice

INV Template

INV Example

INV Webinar

20

Seller

TBE

Trade Bill of Exchange

TBE Template

TBE Example

TBE Webinar

21

Buyer  

POB

Payment Obligation Buyer

POB Template 

POB Example

POB Webinar

22

FSP

PUF

FSP Payment Undertaking Financial

PUF Template

PUF Example

PUF Webinar

23

3rd Party

INP

Inspection Certificate

INP Template

INP Example

INP Webinar

24

3rd Party

COO

Certificate of Origin

COO Template

COO Example

COO Webinar

25

Seller

BEC

Beneficiary Certificate

BEC Template

BEC Example

BEC Webinar

26

Seller

NOC

Notice of Completeness

NOC Template

NOC Example

NOC Webinar

27

3rd Party

Buyer

EXR

Examination Report

EXR Template

EXR Example

EXR Webinar

28

Buyer

ROF

Release of Funds

ROF Template

ROF Example

ROF Webinar

29

Seller

ROD

Release of Documents

ROD Template

ROD Example

ROD Webinar

Install Technology

Google Chrome

Zoom Video

Libre Office


Global Business Method

Digital Trade Transaction Management

Global Business Method©

ICC Uniform Rules for Digital Trade Transactions

Supporting:

URDTT Digital Trade Payments &

eUCP Documentary Letters of Credit

Published by:  

John W. Dunlop & David Cerasi &

Just Down The Street LLC

 

Global Business Method - 1 January 2023



Table of Contents

  1. Global Business Method Introduction
  2. Global Business Method Manual
  3. eDTTworkspace.com - Digital Trade Transaction Workspace
  4. Global Internet
  5. Global Access
  6. eDTTworkspace.com Concept
  7. Module 1 - URDTT Rules & Implementation
  8. ICC eRules Background
  9. ICC Uniform Rules for Digital Trade Transactions (URDTT)
  10. Scope of the Uniform Rules for Digital Trade Transactions (URDTT) Version 1.0
  11. eUCP 600 Definitions - UCP Supplement for Electronic Presentation
  12. eURC 522 Definitions - URC Supplement for Electronic Presentation
  13. URDTT Definitions - Uniform Rules for Digital Trade Transactions
  14. Module 2 - The Global Business Method
  15. Digital Trade Transaction Document Flow Chart
  16. Digital Trade Transaction Document Flow
  17. Global Business Method Trade Finance Schematics
  18. GBM Trade Transaction Documents vs Tasks
  19. International Trade Transaction Defined
  20. Transaction Checklist
  21. Transaction Checklist Explained
  22. Transaction Payment Method Checklist
  23. DTP Digital Trade Payment (URDTT)
  24. DLC eUCP Documentary Letter of Credit (eUCP 600)
  25. Payment Terms and Conditions Checklist
  26. Payment Terms and Conditions Checklist Explained
  27. International Commercial Terms - Incoterms® 2020
  28. Defined terms in Incoterms® 2020
  29. Incoterms® 2020 Rules for any mode of transport
  30. Incoterms® 2020 Rules for sea and inland waterway transport
  31. Incoterms® 2020 Graphic
  32. Incoterms® 2020 Rules Responsibility Reference Guide
  33. The Global Business Method Documents
  34. Module 3 - Sales Documents
  35. Module 4 - Performance Documents
  36. Module 5 - Logistics Documents
  37. Module 6 - Settlement Documents
  38. Module 7 - eDTTworkspace.com
  39. Module 8 - Import Export Finance
  40. Module 9 - Capstone Transaction
  41. Module 10 - eDTTplatform.com  

     Reference Lists

Global Business Method (GBM) Note:

The Global Business Method follows the Uniform Rules for Digital Trade Transactions Version 1.0 published by the International Chamber of Commerce on 1 October 2021, to include new document types, semantics and definitions.

The ICC Uniform Rules for Digital Trade Transactions (URDTT) are intended: (a) for a fully digital environment; (b) to be neutral with regard to technology and messaging standards; and (c) to extend into the corporate space commercial transactions and the growing community of non-bank providers of financial services.

Global Business Method Introduction

Global Business Method  – An international business method for digital trade transactions that is defined by globally recognized trade documents, customs and payment methods.  The Global Business Method provides for a common business methodology between buyers and sellers worldwide.  The Method begins with a buyer’s request for quotation and ends with the seller’s transfer of goods and title for reimbursement.  The Global Business Method follows International Chamber of Commerce rules and guidelines for digital trade transactions.  

Global Business Method Manual

The Global Business Method (GBM) Manual is divided into Modules.  The Module 1 explains the ICC URDTT and eUCP eRules.  Module 2 explains the Global Business Method and its application to a trade transaction.  Modules 3, 4, 5 and 6 divide the GBM document templates into: Module 3 Sales; Module 4 Performance; Module 5 Logistics; and Module 6 Settlement.  The Global Business Method Manual follows the structure of the eDTT Workspace.  The eDTT Workspace provides a template for each trade transaction document; an example use of the template; and a YouTube webinar explaining its use in a trade transaction.  Each eDTT Workspace document template defines a task in the trade transaction process.

The Global Business Method Manual also contains Module 7 eDTT Workspace; Module 8 Import Export Finance; Module 9 Capstone Transaction; and Module 10 eDTT Platform, which computer automates the workspace.

Module 1:  URDTT Rules & Implementation

Module 2:  Global Business Method

Module 3:  Sales Documents

Module 4:  Performance Documents

Module 5:  Logistics Documents

Module 6:  Settlement Documents

Module 7:  eDTT Workspace

Module 8:  Import Export Finance

Module 9:  Capstone Transaction

Module 10: eDTT Platform    

The eDTT Workspace (Digital Trade Transaction Workspace) combined with the Global Business Method Manual and webinars provide a complete solution for buyers and sellers to accomplish international trade transactions online.  Both the eDTT Workspace and Global Business Method Manual are open source to globally enable digital trade transactions for everyone, everywhere.  All of the eDTT Workspace digital trade transaction templates may be downloaded and utilized (at no cost).  The GBM templates may be uploaded into a cloud drive and shared between buyers and sellers to enable digital trade transactions following ICC Uniform Rules for Digital Trade Transactions.

The eDTT Workspace Platform (Digital Trade Transaction Workspace Platform or WSP) provides computer automation of the digital trade transaction process for buyers and sellers.  

eDTTworkspace.com - Digital Trade Transaction Workspace

eDTTworkspace.com provides a digital trade transaction solution between international Buyers and Sellers following the International Chamber of Commerce Uniform Rules for Digital Trade Transactions (URDTT).  A digital trade transaction solution has four common elements; (a) the use of digital trade documents instead of paper; (b) interactive sharing of those documents between the Principals; (c) face to face video communication; and (d) a common business and payment method between the parties.  The benefits of digital trade transactions are less complexity; less confusion; less cost; and faster payment. The alternatives to the eDTTworkspace solution are endless emails, telephone calls, confusion, and cost.

Global Internet

The eDTTworkspace.com Global Business Method documents (templates) are interactive and can be viewed and edited during video conferencing between Buyers and Sellers by giving editing and/or viewing  access to each video conference participant.

Global Access

(a)  Each GBM trade transaction document template may be added to your cloud drive.

(b)  Each GBM trade transaction document may be shared between buyers and sellers.

eDTTworkspace.com Concept

The eDTTworkspace.com is “a workspace” in the Internet cloud.  It is a place where buyers and sellers can meet in person face to face, share documents, negotiate payment with a common business method, and trade goods and services.

(1)  ICC Uniform Rules for Digital Transactions

(2)  Global Business Method trade transaction method

(3)  eDTTworkspace.com trade transaction solution

(4)  Video conferencing between buyers and sellers

(5)  Webinar education and training.

 


Module 1 - URDTT Rules & Implementation

The Uniform Rules for Digital Trade Transactions (URDTT) Version 1.0, ICC Publication No. KS102E, 1 October 2021, provides for completely digitized trade transactions between buyers and sellers. The rules extend into the corporate world and to non-bank service providers.  The eDTT Workspace incorporates these rules and provides eURDTT payment facilities without the need for paper or commercial bank instruments.

ICC eRules Background

UCP 600. The baseline for international trade transaction guidelines and rules is the Uniform Customs and Practice for Documentary Credits (UCP) first introduced in 1933, by the International Chamber of Commerce, Paris, France..  The sixth and current revision as of 2022 is UCP 600.  The UCP is the most successful international standard ever published.  It is recognized and used by over 200 countries, 9600 commercial banks, and millions of businesses worldwide.

eUCP 500.  ICC Uniform Customs and Practice for Documentary Credits Supplement for Electronic Presentation Version 1.0.  The eUCP 500 v1.0 supplement was introduced on 1 April 2002.  This supplement provided guidelines for presenting negotiable document sets electronically for examination and settlement.  Unfortunately, it was never implemented by the banking community.  

eUCP 600 v2.0.  ICC Uniform Customs and Practice for Documentary Credits Supplement for Electronic Presentation Version 2.0.  The eUCP 600 v2.0 supplement was introduced on 1 July 2019.  This supplement provided updated guidelines for presenting negotiable document sets electronically for examination and settlement.  Unfortunately, it too was never implemented by the banking community.  

eURC 522 v1.0.  ICC Uniform Rules for Collections Supplement for Electronic Presentation Version 1.0 (eURC v1.0) in effect 1 July 2019.  Unfortunately, it too was never implemented by the banking community.

URDTT v1.0.  ICC Uniform Rules for Digital Trade Transactions Version 1.0 in was introduced on 1 October 2021. These guidelines provide for completely digital trade transactions with or without the banking community.  These rules are the future of trading between buyers and sellers.

ICC Uniform Rules for Digital Trade Transactions (URDTT)

The Uniform Rules for Digital Trade Transactions Version 1.0, ICC Publication No. KS102E, 1 October 2021, provides for completely digitized trade transactions between Buyers and Sellers. The rules extend into the corporate world and to non-bank service providers.  The eDTT Workspace incorporates these rules and provides eURDTT payment facilities without the need for paper or commercial bank instruments.

Scope of the Uniform Rules for Digital Trade Transactions (URDTT) Version 1.0

URDTT provides a framework that applies to each party or person that participates in a digital trade transaction.  A digital trade transaction is a process, as agreed between the principal parties, whereby electronic records are used to evidence the underlying sale and purchase of goods or services, and the incurring of a Payment Obligation.  The URDTT shall apply when the terms and conditions of a digital trade transaction specify that it is subject to these rules. The URDTT are binding on each party or person unless and to the extent expressly modified or excluded by the terms and conditions of that digital trade transaction.

eUCP 600 Definitions - Uniform Customs and Practice for Documentary Credits for Electronic Presentation Version 2.0, 1 July 2019

eURC 522 Definitions - Uniform Rules for Collections Supplement for Electronic Presentation, 1 July 2019.

URDTT Definitions - Uniform Rules for Digital Trade Transactions, Version 1.0, 1 October 2021.

Module 2 - The Global Business Method

The Global Business Method (GBM) is a standardized method for trade transactions between Buyers and Sellers worldwide.  It includes a trade transaction process; 24+ trade transaction digital document templates that replace paper originals; a uniform code of business practices under ICC URDTT rules, eUCP guidelines, and eURC guidelines; Digital Trade Payment and eUCP Documentary Letter of Credit terms and conditions: definitions of trade terms, and standard field tags under SWIFT guidelines.  The Global Business Method is a linear procedure with which buyers and sellers can agree to use between themselves to provide a common online method to accomplish their transactions. The Global Business Method manual follows the flow of tasks and documents needed in a trade transaction.  All trade transactions can be structured to follow this linear process. The Global Business Method can be used with or without commercial bank involvement following ICC Uniform Rules for Digital Trade Transactions.

ICC eRules. The Global Business Method follows the guidelines of the International Chamber of Commerce Uniform Customs and Practice for Documentary Credits, UCP 600; Supplement 2.0 for Electronic Presentation eUCP v2.0; Uniform Rules for Collections URC 522; and Supplement for Electronic Presentation eURC v1.0; both in effect 1 July 2019; and Uniform Rules for Digital Trade Transactions URDTTv1.0, in effect 1 October 2021.  The Global Business Method can be used for credit and collection trade transactions with commercial banks that issue Letters of Credit under eUCP guidelines (SWIFT Tag 40E: EUCP).  

Global Business Method - Digital Trade Transaction Document Flow Chart

Digital Trade Transaction Document Flow

The digital trade transaction document flow parallels a paper trade transaction document flow.  Each document represents a task for either the buyer or seller to accomplish before the next task can be completed.  For example, a buyer must request a quotation (Request For Quotation) before the seller can provide a quotation (Quotation). A seller cannot provide a Proforma Invoice of the logistics charges without knowing which Incoterm is going to be applied and who is going to be responsible for paying for the shipmenting and insurance costs

Global Business Method Trade Finance Schematics (word meaning)

Any discussion about trade finance, digital trade transactions, documentary letters of credit, documentary collections, bills of exchange and acceptances involves their unique language.  The names given to parties in a trade transaction relate to their function in the trade transaction rather than who they are.  A buyer in a documentary letter of credit transaction is called the applicant when he “applies” for a credit.  A buyer in a digital trade transaction is called the obligor for the Payment Obligation.  He can also be the importer if he imports the goods and services. The importer can also be the title holder of the goods being shipped if he is the “consignee” on the bill of lading.  A seller in a trade transaction is called the beneficiary when he is the one “benefiting” from the proceeds of a transaction.  A seller can also be called the exporter if he is responsible to the importer for the shipping of goods.  An exporter may also be the shipper if he is the one contracting for the carriage of the goods to the importer.  An exporter may or may not be the actual supplier of the goods being exported.  Although confusing, it is the language of trade and trade finance between buyers, sellers, freight forwarders, commercial banks, logistics carriers, customs agents, importers and exporters.  

GBM Trade Transaction Documents vs Tasks

Trade transaction documents are not “paperwork”.  Each document represents a singular task in the trade transaction process.  Trade document uses include payment, title transfer, and customs clearance.  Original electronic documents may be used for payment and title transfer under ICC eRules guidelines; however, original hardcopies are needed by many countries for ocean customs clearance and need to be sent to the buyer after payment or acceptance of an electronic document.

International Trade Transaction Defined

An international trade transaction is defined in the Global Business Method with three (3) checklists; the Transaction Checklist, the Transaction Payment Method Checklist and the Payment Terms and Conditions Checklist.  The information accumulated is conveyed from one document to the next until final payment is received by the Seller.

Trade Transaction Checklist:  Defines the trade transaction.  

  1. __ Buyer name, address, email, telephone
  2. __ Seller name, address, email, telephone
  3. __ General Description of Goods
  4. __ Detailed Description and/or Specifications
  5. __ Price per unit and currency
  6. __ Mode of transportation; Sea, Air, Rail, Truck or Courier
  7. __ Packaging: bulk, container or oversize (deck cargo)
  8. __ Incoterm: EXW,FCA,CPT,CIP,DAT,DAP,DDP,FAS,FOB,CFR,CIF
  9. __ Port or Airport or Place of embarkation
  10. __ Port or Airport or Place of debarkation
  11. __ Logistics company for the Buyer
  12. __ Logistics company for the Seller
  13. __ Transport documents required
  14. __ Partial Shipments Allowed or Not Allowed
  15. __ Transhipments Allowed or Not Allowed
  16. __ Delivery schedule
  17. __ Quality specifications required

Transaction Checklist Explained:

The trade Transaction Checklist defines who the Buyer and Seller are, what the seller wants to buy, how it is to be shipped, and how the buyer wants to pay for it.  

Transaction Item 1. __  Buyer name, address, email, telephone

Buying companies have different names and addresses for different purposes; mailing address, registration address, warehouse address, bank account name, branch address and others. The Buyer’s name on the Request for Quotation should reflect the name and address of their address that is associated with the Buyer’s bank relationship.

Transaction Item 2. __ Seller name, address, email, telephone

Selling companies have different names and addresses for different purposes; mailing address, registration address, warehouse address, bank account name, branch address and others. The Seller’s name on the Request for Quotation should reflect the name and address of their address that is associated with the Seller’s bank relationship.

Transaction Item 3. __ General Description of Goods

The Transaction Checklist has two descriptions for the goods and services it wishes to purchase; a General Description and a more Detailed Description and/or Specifications. The General Description needs to be a generic description of the goods and not contain unit prices or quantities.  The information contained in the General Description will be used to complete the transport documents. Long complex descriptions often do not fit into the space allowed in a carrier’s waybill template forcing discrepancies.

Transaction Item 4. __ Detailed Description and/or Specifications

The additional information contained in the Detailed Description and/or Specifications will be used in the Purchase Order.

Transaction Item 5. __ Price per unit and currency

Price per unit quantity and currency are requested.  Normally, larger quantities and lot sizes provide for smaller unit prices.  The price per unit or lot is extended for a total amount of Cost of Goods Sold (COGS) by item.

Transaction Item 6. __ Mode of transportation: Sea, Air, Rail, Truck or Courier.

The UCP recognizes five (5) modes of transportation; sea, air, rail, truck and courier.  Each mode of transportation has its own transportation contract for carriage format.  However, only the Ocean Bill of Lading is an international title document. The consignee is the owner of the goods that are being conveyed. If the Ocean Bill of Lading is negotiable (to order bill of lading), then title can be transferred by endorsing the ocean bill of lading to a consignee. It is important to note that consigned ocean bills of lading are NOT freely negotiable documents; only non consigned bills are freely negotiable.  Consigned only (non negotiable) bills of lading can be acceptable as electronic records under the present ICC eRules.

Transaction Item 7. __ Packaging: bulk, container or oversize (deck cargo)

Packaging refers to the description of the packaging in bulk, container or oversize deck cargo.  Bulk can further be defined into the size of ship, loose, or bag size.  Packaging may also contain shipping marks and labeling requirements.

Transaction Item 8. __ Incoterms - EXW,FCA,CPT,CIP,DAT,DAP,DDP,FAS,FOB,CFR,CIF

Incoterms are International Commercial Terms.  Incoterms are a set of rules published by the International Chamber of Commerce (ICC) for determining who is responsible for costs associated with carriage, freight, insurance, customs, insurance, loading and unloading.  All International purchases will be processed on an agreed Incoterm to define which party incurs costs and risks, and where title transfers.  Incoterms will be clearly stated on relevant shipping documents.

The Incoterm defines which party incurs freight costs and risks, and where title transfer will occur during the logistics phase of the transaction. The Buyer and Seller must agree on which term is selected for the transaction.

EXW - Ex Works: insert named place of delivery

FCA - Free Carrier: insert named place of delivery

CPT - Carriage Paid To: insert named place of destination

CIP - Carriage and Insurance Paid To: insert named place of destination

DAP - Delivered at Place: insert named place of destination

DPU - Delivered at Place Unloaded: insert named place of destination

DDP - Delivered Duty Paid: insert named place of destination

FAS - Free Alongside Ship: insert named port of shipment

FOB - Free on Board: insert named port of shipment

CFR - Cost and Freight: insert named port of destination

CIF - Cost, Insurance and Freight: insert named port of destination

Transaction Item 9. __  Port or Airport or Place of Embarkation

The port, airport, or place of embarkation must be specified.

Transaction Item 10. __ Port or Airport or Place of Debarkation

The port, airport, or place of debarkation must be specified.

Transaction Item 11. __ Logistics company for the Buyer

The logistics company and/or freight forwarder is selected by the Buyer or Seller depending on the Incoterm selected for the transaction. For example, if the FOB Free On Board Incoterm is used the logistics company will be selected by the Buyer.  If the CIF Cost Insurance & Freight Incoterm is used the logistics company will be selected by the Seller.

Transaction Item 12. __ Logistics company for the Seller

The logistics company and/or freight forwarder is selected by the Buyer or Seller depending on the Incoterm selected for the transaction. For example, if the FOB Free On Board Incoterm is used the logistics company will be selected by the Buyer.  If the CIF Cost Insurance & Freight Incoterm is used the logistics company will be selected by the Seller.

Transaction Item 13. __  Transport documents required (for payment)

Transaction documents required means the Buyer’s payment is conditional upon receiving transport documents. They are also used for other trade functions to include: contract for carriage, title transfer, assessment of port fees, and customs clearance.  All 200+ trading countries have different local laws requiring different documents for customs and importing into their country.

Transport documents required evidence movement, value, content, and quality.

1. Evidence of  Movement - the ocean bill of lading, air waybill, truck waybill, rail waybill or courier receipt.

2. Evidence of Value - the invoice.

3. Evidence of Content - the packing list.

4. Evidence of Quality - the beneficiary or third party inspection certificate.

5. Additional documents that may include: Certificate of Origin, Phytosanitary Certificate, Fumigation Certificate, SGS Inspection Certificate, and Export License.

Transaction    Item 14. __ Partial Shipments Allowed or Not Allowed

Partial Shipment allowed or not allowed is for more than one contract for carriage document that makes up the total shipment.  This is important because a total shipment under the UCP guidelines assumes the value and/or quantity of units is within 5% of the trade finance facility supporting the Purchase Order.  The 5% tolerance can be increased or decreased with the mutual agreement between the Buyer and Seller.

Transaction Item 15. __  Transhipment Allowed or Not Allowed.

Transhipment allowed or not allowed is for more than one mode of transport involved to the final destination specified by the Incoterm.  This is an important consideration because many countries do not have a port for embarkation to the destination; it may be inland and not to a port requiring a transfer to a second mode of transportation, such as from a ship to a train.

Transaction Item 16. __  Delivery schedule.

The delivery schedule reflects the availability of the goods.  It is common to state the delivery schedule as a number of days ARO, or “after receipt of order”.  

Transaction Item 17. __ Quality specifications required

Many goods, such as commodities, require the actual specifications of the goods shipped.

Transaction Payment Method Checklist:  Defines the payment method.

TheTransaction Payment Method Checklist defines which payment facility is to be used and what rules and guidelines are to be followed to manage the transaction.

DTP ___  Digital Trade Payment (URDTT)

The DIGITAL TRADE PAYMENT (DTP) is a facility that defines the terms and conditions for a digital trade transaction under International Chamber of Commerce Uniform Rules for Digital Trade Transactions. The Digital Trade Payment is the trade finance facility that supports the Buyer’s Purchase Order.

DLC ___    eUCP Documentary Letter of Credit (UCP 600)

The eUCP DOCUMENTARY LETTER OF CREDIT (DLC) is a trade finance instrument issued by a commercial bank to the Seller/Beneficiary on behalf of the Buyer/Applicant to support a purchase order.  Documentary Letters of Credit follow the Uniform Customs and Practice for Documentary Credits (UCP) and Supplement for Electronic Presentation Version 2.0 (eUCP), published by the International Chamber of Commerce, Paris, France.

Payment Terms and Conditions Checklist.  Defines the payment terms and conditions.

The Payment Terms and Conditions Checklist defines the terms and conditions agreed to between the parties for settlement of the trade transaction.

  1. __ Buyer / Obligor
  2. __ Seller / Beneficiary
  3. __ FSP / Financial Services Provider
  4. __ Currency
  5. __ Amount
  6. __ Percentage Amount Tolerance:  +- 5% or ( ___ %)
  7. __ Partial Shipments: __ ALLOWED or __ NOT ALLOWED
  8. __ Transshipments: __ ALLOWED or __ NOT ALLOWED
  9. __ Drafts Payable: AT SIGHT or ___ DAYS AFTER WAYBILL
  10. __ Red Clause: Drawing of Invoice Value: ___ %
  11. __ Presentation Period: 10 Days
  12. __ Incoterm:
  13. __ Third Party Documents Allowed
  14. __ General Description of Goods
  15. __ Detailed Description of Goods Specifications
  16. __ Digital documents to be sent to:  
  17. __ Paper originals to be sent to (after payment):

_x_ Documents Required for Negotiation:

  1. __ AWB Air Waybill
  2. __ BOL Bill of Lading
  3. __ Freight Prepaid
  4. __ Freight Collect
  5. __ Consigned To:
  6. __ Notify Party:
  7. __ RWB Rail Waybill
  8. __ EXW Freight Forwarder Cargo Receipt
  9. __ CRE Courier Receipt
  10. _x_  Invoice
  11. _x_ Packing List
  12. __ Certificate of Origin
  13. __ SGS inspection Report
  14. __ Fumigation Certificate
  15. __ Phytosanitary Certificate
  16. __ Test Report: __________
  17. __ Insurance Certificate (for 110% of transaction)
  18. __ Other: __________
  19. __ Other: __________
  20. __ Other: __________
  21. _x_ Trade Bill of Exchange
  22. __ Payment Obligation Buyer
  23. __ FSP Payment Undertaking Financial
  24. _x_ Notice of Completeness

Payment Terms and Conditions Checklist Explained

1. __ Buyer / Obligor: The Buyer who is obligated to pay the Seller who is the beneficiary of the payment.

2. __ Seller / Beneficiary: The Seller who is the beneficiary of the Buyer’s payment.

3. __ FSP / Financial Services Provider: The Financial Services Provider that undertakes to underwrite the Buyer’s payment obligation.

4. __ Currency: The currency of the payment.

5. __ Amount: The amount of payment.  

6. __ Percentage Amount Tolerance  +- 5% or ( ___ %):  The quantity and value tolerance allowed in the trade finance facility from the Purchase Order.

7. __ Partial Shipments: __ ALLOWED or __ NOT ALLOWED. Partial Shipment allowed or not allowed for more than one contract for carriage document that makes up the total shipment.

8. __ Transshipments: __ ALLOWED or __ NOT ALLOWED. Transhipment allowed or not allowed for more than one mode of transport involved to the final destination specified by the Incoterm.

9. __ Drafts Payable: AT SIGHT or ___ DAYS AFTER WAYBILL: At sight means when the transport documents called for are presented.  Drafts can be usance (time) days after a specified date; usually the bill of lading shipping date.

10. __ Red Clause: Drawing of Invoice Value: ___ %:  The amount of the trade finance facility that can be drawn down prior to transport documents being presented.  (Normally used as a deposit)

11. __  Presentation Period: 10 days.  The number of days allowed by the trade finance payment facility for transport documents to be presented after shipment for negotiation.

12.  __ Incoterm:  The three (3) letter code for the International Commercial Term.

13. __  Third Party Documents Allowed.  Allows the Seller to submit third party documents as part of the negotiable document set.

14. __ Description of Goods and Services.  The general description is a generic description of the goods and contains (ideally) no unit prices or quantities (refer to UCP 600 Article 4.b).

15. __  Detailed Description of Goods and/or Specifications.  Detailed description and specifications of goods and services purchased.

16. __ Digital documents to be sent to:  Email address for receiving digital documents.

 

17. __ Paper originals to be sent to (after payment): Name and address of entity to receive paper original documents after payment for customs purposes.

18. _x_ Documents Required for Negotiation: Documents required for payment agreed to between the parties.

International Commercial Terms - Incoterms® 2020

The International Chamber of Commerce has published new Incoterms 2020 that have come into effect from the 1st of January 2020.  The ICC originally published Incoterms in 1936 and have continually made updates to reflect the changes to the global trade environment.

The Incoterms or International Commercial Terms are a series of predefined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the global or international transportation and delivery of goods. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer, but they do not themselves conclude a contract, determine the price payable, currency or credit terms, govern contract law or define where title to goods transfers.

Defined terms in Incoterms® 2020

There are certain terms that have special meaning within Incoterms::

Incoterms 2020 Rules for any mode of transport

EXW – Ex Works (named place of delivery)

FCA – Free Carrier (named place of delivery)

CPT – Carriage Paid To (named place of destination)

CIP – Carriage and Insurance Paid to (named place of destination)

DPU – Delivered At Place Unloaded (named place of destination)

DAP – Delivered At Place (named place of destination)  

DDP – Delivered Duty Paid (named place of destination)

Incoterms 2020 Rules for sea and inland waterway transport

FAS – Free Alongside Ship (named port of shipment)

FOB – Free on Board (named port of shipment)

CFR – Cost and Freight (named port of destination)

CIF – Cost, Insurance & Freight (named port of destination)

EXW – Ex Works (named place of delivery)

EXW Works. The seller makes the goods available at their premises, or at another named place. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used while making an initial quotation for the sale of goods without any costs included.

EXW means that a buyer incurs the risks of bringing the goods to their final destination. Either the seller does not load the goods on collecting vehicles and does not clear them for export, or if the seller does load the goods, they do so at buyer's risk and cost. If the parties agree that the seller should be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.

FCA – Free Carrier (named place of delivery)

FCA Free Carrier. The seller delivers the goods, cleared for export, at a named place (possibly including the seller's own premises). The goods can be delivered to a carrier nominated by the buyer, or to another party nominated by the buyer.

In many respects this Incoterm has replaced FOB in modern usage, although the critical point at which the risk passes moves from loading aboard the vessel to the named place. The chosen place of delivery affects the obligations of loading and unloading the goods at that place.

If delivery occurs at the seller's premises, or at any other location that is under the seller's control, the seller is responsible for loading the goods onto the buyer's carrier. However, if delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the named place; the buyer is responsible for both unloading the goods and loading them onto their own carrier.

CPT – Carriage Paid To (named place of destination)

CPT replaces the C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerized sea freight.

The seller pays for the carriage of the goods up to the named place of destination. However, the goods are considered to be delivered when the goods have been handed over to the first or main carrier, so that the risk transfers to the buyer upon handing goods over to that carrier at the place of shipment in the country of export.

The seller is responsible for origin costs including export clearance and freight costs for carriage to the named place of destination (either the final destination such as the buyer's facilities or a port of destination. This has to be agreed to by seller and buyer, however).

If the buyer requires the seller to obtain insurance, the Incoterm CIP should be considered instead.

CIP – Carriage and Insurance Paid to (named place of destination)

This term is broadly similar to the above CPT term, with the exception that the seller is required to obtain insurance for the goods while in transit. CIP requires the seller to insure the goods for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters (which is a change from Incoterms 2010 where the minimum was Institute Cargo Clauses (C)), or any similar set of clauses, unless specifically agreed by both parties. The policy should be in the same currency as the contract, and should allow the buyer, the seller, and anyone else with an insurable interest in the goods to be able to make a claim.

CIP can be used for all modes of transport, whereas the Incoterm CIF should only be used for non-containerized sea-freight.

DPU – Delivered At Place Unloaded (named place of destination)

This Incoterm requires that the seller delivers the goods, unloaded, at the named place of destination. The seller covers all the costs of transport (export fees, carriage, unloading from main carrier at destination port and destination port charges) and assumes all risk until arrival at the destination port or terminal.

The terminal can be a port, airport, or inland freight interchange, but must be a facility with the capability to receive the shipment. If the seller is not able to organize unloading, they should consider shipping under DAP terms instead. All charges after unloading (for example, import duty, taxes, customs and on-carriage) are to be borne by the buyer. However, it is important to note that any delay or demurrage charges at the terminal will generally be for the seller's account.

Some uncertainty has emerged since Incoterms 2020 were adopted as to the meaning of "unloaded" when goods are delivered in a container, usually by sea, as the removal of the container from the incoming vessel may suggest that it has been "unloaded", but the goods themselves are not yet "unloaded" while they remain in the container.

DAP – Delivered At Place (named place of destination)

Incoterms 2010 defines DAP as 'Delivered at Place' – the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. Under DAP terms, the risk passes from seller to buyer from the point of destination mentioned in the contract of delivery.

Once goods are ready for shipment, the necessary packing is carried out by the seller at their own cost, so that the goods reach their final destination safely. All necessary legal formalities in the exporting country are completed by the seller at their own cost and risk to clear the goods for export.

After the arrival of the goods in the country of destination, the customs clearance in the importing country needs to be completed by the buyer, e.g. import permit, documents required by customs, etc., including all customs duties and taxes.

Under DAP terms, all carriage expenses with any terminal expenses are paid by the seller up to the agreed destination point. The necessary unloading cost at final destination has to be borne by buyer under DAP terms.

DDP – Delivered Duty Paid (named place of destination)

Seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm "Free In Store (FIS)". This term places the maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the named place of destination.

The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer's country, including both paying the duties and taxes, and obtaining the necessary authorizations and registrations from the authorities in that country. Unless the rules and regulations in the buyer's country are very well understood, DDP terms can be a very big risk both in terms of delays and in unforeseen extra costs, and should be used with caution.

FAS – Free Alongside Ship (named port of shipment)

The seller delivers when the goods are placed alongside the buyer's vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the seller to clear the goods for export, which is a reversal from previous Incoterms versions that required the buyer to arrange for export clearance. However, if the parties wish the buyer to clear the goods for export, this should be made clear by adding explicit wording to this effect in the contract of sale. This term should be used only for non-containerized sea freight and inland waterway transport.

FOB – Free on Board (named port of shipment)

FOB Free on Board. Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel. The seller's responsibility does not end at that point unless the goods are "appropriated to the contract" that is, they are "clearly set aside or otherwise identified as the contract goods".[20] Therefore, FOB contract requires a seller to deliver goods on board a vessel that is to be designated by the buyer in a manner customary at the particular port. In this case, the seller must also arrange for export clearance. On the other hand, the buyer pays the cost of marine freight transportation, bill of lading fees, insurance, unloading and transportation cost from the arrival port to destination. Since Incoterms 1980 introduced the Incoterm FCA, FOB should only be used for non-containerized sea freight and inland waterway transport.

However, FOB is commonly used incorrectly for all modes of transport despite the contractual risks that this can introduce. In some common law countries such as the United States of America, FOB is not only connected with the carriage of goods by sea but also used for inland carriage aboard any "vessel, car or other vehicle."[21]

CFR – Cost and Freight (named port of destination)

The seller pays for the carriage of the goods up to the named port of destination. Risk transfers to buyers when the goods have been loaded on board the ship in the country of Export. The seller is responsible for origin costs including export clearance and freight costs for carriage to the named port. The shipper is not responsible for delivery to the final destination from the port (generally the buyer's facilities), or for buying insurance. If the buyer requires the seller to obtain insurance, the Incoterm CIF should be considered. CFR should only be used for non-containerized sea freight and inland waterway transport; for all other modes of transport it should be replaced with CPT.

CIF – Cost, Insurance & Freight (named port of destination)

As an Incoterm, CIF is broadly similar to the term CFR, with the exception that the seller is required to obtain insurance for the goods while in transit. CIF requires the seller to insure the goods for 110% of the contract value under Institute Cargo Clauses (A) of the Institute of London Underwriters (which is a change from Incoterms 2010 where the minimum was Institute Cargo Clauses (C)), or any similar set of clauses, unless specifically agreed by both parties. The policy should be in the same currency as the contract. The seller must also turn over documents necessary, to obtain the goods from the carrier or to assert claim against an insurer to the buyer. The documents include (as a minimum) the invoice, the insurance policy, and the bill of lading. These three documents represent the cost, insurance, and freight of CIF. The seller's obligation ends when the documents are handed over to the buyer. Then, the buyer has to pay at the agreed price. Another point to consider is that CIF should only be used for non-containerized sea freight; for all other modes of transport it should be replaced with CIP.

Incoterms® 2020 Graphic

The Incoterms Chart shows the least risk to the seller (EXW) to the most risk to the seller (DDP).  And, the most risk to the buyer (EXW) and the least risk to the buyer (DDP).

 

Incoterms 2020 Rules Responsibility Reference Guide

Allocations of costs to buyer or seller according to Incoterms 2020.

The Global Business Method Documents

The Global Business Method manual provides buyers and sellers the explanation to the Global Business Method document templates for use in their trade transactions.  The GBM document templates conform to the universally recognized Uniform Rules for Digital Trade Transactions, ICC Publication No. KS102E; and the Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600 Supplement 2.0 for documents being presented in electronic format.  The Global Business Method documents that relate to movement, value, content and quality can be used as originals for trade finance negotiations with a company or commercial bank.  Each Global Business Method document defines a “task” in the workflow of a trade transaction.  Not all documents or tasks are used or needed in every trade transaction; however, the individual tasks for all trade transactions are the same.  Not all documents are needed for negotiation and payment; it depends on the goods and services and what the Principal Parties (buyer and seller) agree too.

Module 1 - URDTT Rules & Implementation (reference above)

Module 2 - Global Business Method (reference above)

0.0  CMI - Computer Management Interface

Module 3 - Sales Documents:

  1. BOA - Basic Ordering Agreement
  2. RFQ - Request for Quotation
  3. QTO - Quotation
  4. POR - Purchase Order
  5. POA - Purchase Order Acknowledgement
  6. PIV - Proforma Invoice

Module 4 - Performance Documents:

  1. TPI - Digital Trade Payment Instructions
  2. APP - Digital Trade Payment Application
  3. DTP - Digital Trade Payment
  4. TCI - eUCP Documentary Letter of Credit Instructions
  5. APC - eUCP Documentary Letter of Credit Application
  6. DLC - eUCP Documentary Letter of Credit
  7. AMD - Amendment Application
  8. TDC - Documentary Letter of Credit Transfer Application
  9. AOP - Assignment of Proceeds Application

Module 5 - Logistics Documents:

  1. SLI - Shipper's Letter of Instruction
  2. BOL - Transportation Document
  3. PKL - Packing List
  4. INV - Invoice
  5. TBE - Trade Bill of Exchange

Module 6 - Settlement Documents

  1. POB - Payment Obligation Buyer
  2. PUF - FSP Payment Undertaking Financial
  3. INP - Inspection Certificate
  4. COO - Certificate of Origin
  5. BEC - Beneficiary Certificate
  6. NOC - Notice of Completeness
  7. EXR - Examination Report
  8. ROF - Release of Funds
  9. ROD - Release of Documents
  10. CPF - Company Profile Form for Due Diligence
  11. SFI - Services Fee Invoice

Module 7 - eDTTworkspace.com

Module 8 - Export Finance

Module 9 - Capstone Transaction

Module 10 - eDTTplatform.com

Module 3: - Sales Documents

The Global Business Method documents have to do with defining the trade transaction, to include: who the supplier is; how much is it going to cost; payment method and the terms and conditions of sale.

1.0  BOA - Basic Ordering Agreement

 

The BASIC ORDERING AGREEMENT (BOA) defines the Principal Parties to a trade transaction. The BOA includes buyer and seller’s names, addresses, mode of  transport,  sales terms, shipping addresses, consignee, notify party, documents required for negotiation, Incoterm, and representative contact information if there is one. The BOA is not specific as to prices, unit quantities and delivery dates; these are contained in the Purchase Order.  The BOA is not a contract, it functions as the location of original contact and transaction information.

BUYER and SELLER document.  The Basic Ordering Agreement can be initiated by either the Buyer or Seller. The BOA information is to be used in all the subsequent documents in the trade transaction.  The Basic Ordering Agreement does not have to be complete to initiate the trade transaction, since much of the transaction information is part of the evolving discussion and negotiation process.

The Basic Ordering agreement is the first document within the Global Business Method.  The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be guaranteed by a third party, such as a bank or insurance company, is wishful thinking.

 

The Basic Ordering Agreement should NOT be construed as a formal contract.  The purpose of the Basic Ordering Agreement is to clarify the basic business information about the trade transaction. The information in the Basic Ordering Agreement is needed to complete the documentation for a successful transaction.  The Basic Ordering Agreement should be considered the input database for the many trade transaction documents that will be needed as the trade transaction unfolds.

The Basic Ordering Agreement identifies the Buyer who will become the Buyer / Obligor; and the Seller who will become the Seller / Beneficiary of the subject digital trade transaction.

It is important to keep in mind that each trade transaction document defines a trade transaction task. The information from one document flows into the next.  For instance; the Purchase Order is the source document for the Packing List; which is the source document for the Invoice, which in turn, is the source document for the Trade Bill of Exchange, and so on.

Basic Ordering Agreement -  BOA TEMPLATE  /  Basic Ordering Agreement - BOA EXAMPLE

BOA Webinar / English /  Spanish  /  German  /  Arabic  /  Mandarin

 

2.0  RFQ - Request for Quotation

 

The REQUEST FOR QUOTATION (RFQ) is the Buyer’s request for a quotation from the Seller for the purchase of goods and services.  It requests the cost of goods, availability, ports of loading, Incoterm, and whether freight and insurance is included in the price.

BUYER document.  The Request For Quotation is initiated by Buyer. The RFQ information is to be used in the Seller’s Quotation document.  The Request For Quotation does not have to be complete to initiate the request, since much of the transaction information is part of the evolving discussion and negotiation process. The Request for Quotation is a buyer task.  The Request for Quotation is often misunderstood as only asking for the purchase price.  This ignores the full 60+ data elements that have a bearing on the price the Seller is willing to quote.

The Request For Quotation is a trade transaction document in the Global Business Method method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

 

The Request for Quotation template contains three checklists: the (1) Transaction Checklist, (2) Transaction Payment Method Checklist, and the (3) Payment Terms and Conditions Checklist.

Transaction Checklist: (see above)

Transaction Payment Method Checklist:  (see above)

Payment Terms and Conditions Checklist:  (see above)

Request For Quotation -  RFQ TEMPLATE  /  Request For Quotation - RFQ EXAMPLE 

RFQ Webinar Script (English)  /  Spanish  /  German  /  Arabic  /  Mandarin

   

3.0 QTO - Quotation

The QUOTATION (QTO) is specific in response to the Request For Quotation as to prices, discounts, Incoterm, freight charges, payment method, and the terms and conditions of sale.  The Quotation has specific prices and terms and conditions for the stated validity period of the quote.  If the buyer does not place a purchase order within the validity of the Quotation, the seller is not obligated to honor the quoted prices and terms.

SELLER document.  The Quotation is initiated by the Seller. The QTO information is to be used in the Buyer’s Purchase Order document.  The Quotation does not have to be complete to answer the Request For Quotation. since much of the transaction information is part of the evolving discussion and negotiation process. The Quotation is often misunderstood as only providing the purchase price.  This ignores the full 60+ data elements that have a bearing on the price the Seller is willing to quote.

The Quotation is a trade transaction document in the Global Business Method method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

The Quotation template contains three checklists: the (1) Transaction Checklist, (2) Transaction Payment    Method Checklist, and the (3) Payment Terms and Conditions Checklist.

Transaction Checklist: (see above)

Transaction Payment Method Checklist:  (see above)

Payment Terms and Conditions Checklist:  (see above)

Quotation -  QTO TEMPLATE  /  Quotation - QTO EXAMPLE 

QTO Webinar / English  /  Spanish  /  German  /  Arabic  /  Mandarin

4.0 POR - Purchase Order

The PURCHASE ORDER (POR) is the Buyer’s contract for the purchase of goods and services from the Seller.  The Purchase Order contains the price, delivery, and terms and conditions of sale for a specific purchase.  It is based on the Quotation provided by the Seller.  The Purchase Order becomes the contract for sale between the parties for the trade transaction.

BUYER document.  The Purchase Order is initiated by the Buyer. The POR information is to be used in the Seller’s Purchase Order Acknowledgement document.  The Purchase Order DOES have to be complete reflecting the transaction agreed too as a result of the discussion and negotiation process.  The Purchase Order is often misunderstood as only providing the purchase price.  This ignores the full 60+ data elements that have a bearing on the price the Buyer is willing to pay.

The Purchase Order is a trade transaction document in the Global Business Method method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

The  Purchase Order template contains three checklists: the (1) Transaction Checklist, (2) Transaction Payment Method Checklist, and the (3) Payment Terms and Conditions Checklist.

Transaction Checklist: (see above)

Transaction Payment Method Checklist:  (see above)

Payment Terms and Conditions Checklist:  (see above)

Purchase Order  - POR TEMPLATE  /  Purchase Order - POR EXAMPLE 

POR Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

5.0  POA - Purchase Order Acknowledgement

The PURCHASE ORDER ACKNOWLEDGEMENT (POA) is the Sellers acknowledgement to the Buyer that the Seller’s accepts the Purchase Order.  Any deviations or changes to the Purchase Order are stipulated at this time prior to the Buyer committing funds.  The quantities and shipping dates must be within the advised terms and conditions of the Purchase Order, or it must be renegotiated.

SELLER document.  The Purchase Order Acknowledgement is initiated by the Seller. The POR   information is to be used in the Seller’s Proforma Invoice document.  The Purchase Order Acknowledgement DOES have to be complete reflecting the transaction agreed too in the Buyer’s Purchase Order.

The Purchase Order Acknowledgement is a trade transaction document in the Global Business Method method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

The  Purchase Order Acknowledgement template contains three checklists: the (1) Transaction Checklist, (2) Transaction Payment Method Checklist, and the (3) Payment Terms and Conditions Checklist.

Transaction Checklist: (see above)

Transaction Payment Method Checklist:  (see above)

Payment Terms and Conditions Checklist:  (see above)

Purchase Order Acknowledgement - POA TEMPLATE  /  Purchase Order Acknowledgement  - POA EXAMPLE 

POA Webinar Script (English)  /  Spanish  /  German  /  Arabic  /  Mandarin

6.0  PIV - Proforma Invoice

The PROFORMA INVOICE (PIV) is the Seller’s estimate of the charges that will be invoiced to the Buyer against the Purchase Order after shipping.. The Proforma Invoice is drafted by the Seller and is used by the Buyer to arrange for the amount of payment the Seller requests.  The Purchase Order contains the prices the Buyer intends to pay for the Cost of Goods Sold (COGS); it may or may not reflect the amount of the remittance that the Seller is going to request in the invoice to fill the order and cover all of his freight, insurance, transaction fees and cost of money.  The Seller’s Proforma Invoice estimates the value of goods that are going to be shipped and adds the estimated cost of shipping and insurance that will be charged that needs to be included.  By default, the Proforma Invoice estimate should be within 5% plus or minus of the planned final invoice.

SELLER document.  The Proforma Invoice is initiated by the Seller. The PIV information is used in the Buyer’s Purchase Order document.  The Proforma Invoice does have to be complete in order for the Buyer to be able to apply for a Digital Trade Payment or eUCP Documentary Letter of Credit with the correct value of the transaction. .  The Proforma Invoice is often misused to convey a quotation and should not be done.

 

The Proforma Invoice is a trade transaction document in the Global Business Method method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

The  Proforma Invoice template contains three checklists: the (1) Transaction Checklist, (2) Transaction Payment Method Checklist, and the (3) Payment Terms and Conditions Checklist.

Transaction Checklist: (see above)

Transaction Payment Method Checklist:  (see above)

Payment Terms and Conditions Checklist:  (see above)

Proforma Invoice - PIV TEMPLATE  /  Proforma Invoice - PIV EXAMPLE 

PIV Webinar Script (English)  /  Spanish  /  German  /  Arabic  /  Mandarin

Module 4: PERFORMANCE

7.0  TPI - Digital Trade Payment Instructions

DIGITAL TRADE PAYMENT INSTRUCTIONS (TPI). The Seller’s Digital Trade Payment terms and conditions are put into the Digital Trade Payment Instructions to the Buyer.  These instructions contain the Seller company’s name and location, payment terms, and documents that can be produced to evidence movement, value, content and quality.  These instructions are used by the Buyer to complete his Digital Trade Payment Application for the issue of the Digital Trade Payment facility to the Seller.

SELLER document.  The Digital Trade Payment Instructions are initiated by the Seller. The TPI information is used for the Buyer’s Digital Trade Payment Application document.  The Digital Trade Payment Instructions do have to be complete in order for the Buyer to be able to apply for a Digital Trade Payment with the correct value of the transaction.

 

The Digital Trade Payment Instructions is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

Digital Trade Payment Instruction fields are cross referenced with SWIFT Tags so there is no misunderstanding of what information is contained in each field. (SWIFT Standards: Message Reference Guide Category 7 - Documentary Credits and Guarantees)

Digital Trade Payment Instructions - TPI TEMPLATE  /  Digital Trade Payment Instructions - TPI EXAMPLE 

TPI Webinar Script (English)  /  Spanish  /  German  /  Arabic  /  Mandarin

8.0  APP - Digital Trade Payment Application

DIGITAL TRADE PAYMENT APPLICATION (APP). The Buyer applies for a Digital Trade Payment to be issued to the Seller with the Digital Trade Payment Application.  The Buyer’s Digital Trade Payment Application reflects the Seller’s Digital Trade Payment Instructions. This application reflects the currency amount, the sales terms and conditions, ports of loading and unloading, and the Incoterm agreed to in the Purchase Order from the Seller.

BUYER document.  The Digital Trade Payment Application is initiated by the Buyer. The APP information is used for the Buyer’s Digital Trade Payment facility. The Digital Trade Payment Application does have to be complete in order for the Buyer to be able to apply for a Digital Trade Payment with the correct value of the transaction.

 

The Digital Trade Payment Application is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

The Digital Trade Payment Application is a buyer’s task. The buyer’s Documentary Trade Payment Application contains the Sellers terms and conditions from the Seller’s Documentary Trade Payment Instructions.  The Documentary Trade Payment Application contains the Seller’s and Buyer’s company’s name and address, value, payment terms, and documents to be negotiated to evidence shipment, content, value and quality.  

Digital Trade Payment Application - APP TEMPLATE  /  Digital Trade Payment Application - APP EXAMPLE 

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9.0  DTP - Digital Trade Payment

The DIGITAL TRADE PAYMENT (DTP) is a facility that defines the terms and conditions for a digital trade transaction under International Chamber of Commerce Uniform Rules for Digital Trade Transactions. The Digital Trade Payment is the trade finance facility that supports the Buyer’s Purchase Order.

BUYER document. The Digital Trade Payment facility is issued by the Buyer or a third party to the Seller. The DTP is issued in the same format as a SWIFT MT700 message format.

The Digital Trade Payment facility is a Global Business Method document. The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

Digital Trade Payment Issue. The Digital Trade Payment facility is issued in SWIFT MT 700 format using the same field definitions as for SWIFT Category 7 Documentary Credits and Guarantees.  The Digital Trade Payment is not a documentary credit.  The drawee funds are available with a Buyer Obligor or with a Financial Service Provider who undertakes the Buyer’s obligation to pay (ref URDTT).  The Digital Trade Payment facility is implemented and managed under ICC Uniform Customs and Practice for Documentary Credits (UCP).  

Goods Shipment. After shipment the Seller submits the required transaction documents to the issuing entity for examination and negotiation under ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0), in effect 1 July 2019.  The documents are submitted as electronic records with a Notice of Completeness as the Negotiable Document Set, which includes as a minimum, but not limited to: transport document (evidence of movement); packing list (evidence of content); invoice (evidence of value); inspection certificate (evidence of quality); and trade bill of exchange (demand for payment).  The Negotiable Document Set may also include a certificate of origin, insurance certificate, fumigation certificate, phytosanitary certificate, and third party inspection certificate.

Document Submission.  The Negotiable Documents Set (NDS) transportation documents are prepared in conformance with the issued Digital Trade Payment facility.  The Negotiable Document Set can be submitted in electronic record format in PDF (Portable Document Format), or in digital document format (Google Doc, MS Word, HTM, GIF, JPEG).  Document data fields must meet URDTT rules and guidelines. Submissions may be email attachments or hyperlinks.

Examination.  The Negotiable Document set is examined by the issuing entity using the ICC Customs and Practice for Documentary Credits and Guide to Documentary Credits, Fifth Edition, by Gary Collyer.  Examination for compliance or non-compliance (discrepancies) are presented to the Buyer for approval or non-approval prior to payment of the Trade Bill of Exchange presented by the Seller in the Negotiable Document Set.

Release of Funds.  The Buyer (Obligor) accepts the Negotiable Document Set and releases the payment to the Seller (Beneficiary) in accordance with the Trade Bill of Exchange payment destination and provides evidence of payment.

Release of Documents.  The Seller / Beneficiary accepts payment and releases the documents.

Customs.  The Digital Trade Payment facility is a payment facility. The transport documents in electronic form may, or may not, be acceptable for customs clearance. This is usually the case with ocean shipments.  If hard copy paper documents are required by the Buyer, the Seller will provide them after payment is received.

Digital Trade Payment Terms and Conditions.

Tag: Nomenclature Field

40A:  Form of Digital Trade Payment                           Non-Transferable

40E:  Applicable Rules                                                  URDTT CURRENT VERSION

50:  Buyer/Obligor Name, Address, Tel & Email:        Obligor

59:  Seller/Beneficiary Name, Address, Tel & Email:  Beneficiary

32B:  Currency Code                                 USD, EUR, GBP or Other        

39A:  Percentage Credit Amount Tolerance                +5% / -5% PERCENT (minimum)

41D:  Available With (Drawee)                Buyer/Obligor or Financial Services Provider

42C:  Drafts At                                          AT SIGHT; or ____ Days From Transport Date

42D:  Drawee                                            Buyer/Obligor Financial Services Provider

43P:  Partial Shipments                                                 Allowed (or not Allowed)

43T:  Transhipments                                                      Allowed (or not Allowed)

44E:  Loading/Dispatch At/From                                  Port, airport or place

44F:  For Transport To                                                  Port, airport or place

44C:  Latest Date of Shipment                     10 Days prior to DTP expiry date

45A:  Goods Description                             General description of goods and services.

46A:  Documents Required:                        

Transport Document (Bill of Lading, Air waybill) Consignee (Buyer/Obligor), notify party, freight collect or prepaid; Packing List; Invoice; and Certificates; Notice of Completeness.

47A:  Additional Conditions

1. All documents in English

2. Spelling mistakes will not be considered discrepancies

3. Third party documents are acceptable

4. Transport documents showing 2 or more agents for the carrier is acceptable

Digital Trade Payment  - DTP TEMPLATE   Digital Trade Payment - DTP EXAMPLE 

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10.0  TCI - eUCP Documentary Letter of Credit Instructions

eUCP DOCUMENTARY LETTER OF CREDIT INSTRUCTIONS (TCI).  The Seller’s eUCP Documentary Letter of Credit terms and conditions are put into the eUCP Documentary Letter of Credit Instructions to the Buyer.  These instructions contain the Seller company’s name and location, payment terms, and documents that can be produced to evidence movement, value, content and quality.  These instructions are used by the Buyer to complete his eUCP Documentary Letter of Credit Application for the issue of the Documentary Letter of Credit to the Seller.

SELLER document.  The eUCP Documentary Letter of Credit Instructions are initiated by the Seller. The TCI information is used for the Buyer’s eUCP Documentary Letter of Credit Application document.  The Documentary Letter of Credit Instructions do have to be complete in order for the Buyer to be able to apply for a Documentary Letter of Credit with the correct value of the transaction.

 

The eUCP Documentary Letter of Credit Instructions is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT), effective 1 October 2021, and ICC Uniform Customs and Practice for Documentary Credits (UCP 600), and Supplement for Electronic Presentation Version 2.0 (eUCP v2.0).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

eUCP Documentary Letter of Credit Instruction fields are cross referenced with SWIFT Tags so there is no misunderstanding of what information is contained in each field. (SWIFT Standards: Message Reference Guide Category 7 - Documentary Credits and Guarantees)

eUCP Documentary Letter of Credit Instructions - TCI TEMPLATE  /  eUCP Documentary Letter of Credit Instructions - TCI EXAMPLE 

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11.0  APC - eUCP Documentary Letter of Credit Application

eUCP DOCUMENTARY LETTER OF CREDIT APPLICATION (APC). The Buyer applies for a eUCP Documentary Letter of Credit to be issued to the Seller with the eUCP Documentary Letter of Credit Application.  The Buyer’s  eUCP Documentary Letter of Credit Application reflects the Seller’s  eUCP Documentary Letter of Credit Instructions. This application reflects the currency amount, the sales terms and conditions, ports of loading and unloading, and the Incoterm agreed to in the Purchase Order from the Seller.

BUYER document.  The eUCP Documentary Letter of Credit Application is initiated by the Buyer. The APC information is used for the Buyer’s eUCP Documentary Letter of Credit facility. The eUCP Documentary Letter of Credit does have to be complete in order for the Buyer to be able to apply for a eUCP Documentary Letter of Credit with the correct value of the transaction.

 

The eUCP Documentary Letter of Credit Application is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021, and ICC Uniform Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

The eUCP Documentary Letter of Credit Application is a buyer’s task. The buyer’s eUCP Documentary Letter of Credit Application contains the Sellers terms and conditions from the Seller’s eUCP Documentary Letter of Credit Instructions.  The eUCP Documentary Letter of Credit Application contains the Seller’s and Buyer’s company’s name and address, value, payment terms, and documents to be negotiated to evidence shipment, content, value and quality.  

Documentary Letter of Credit Application - DLC TEMPLATE  /  Documentary Letter of Credit Application - DLC EXAMPLE 

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12.0  eDLC - eUCP Documentary Letter of Credit

The eUCP DOCUMENTARY LETTER OF CREDIT (eDLC) is a trade finance instrument issued by a commercial bank to the Seller/Beneficiary on behalf of the Buyer/Applicant to support a purchase order.  eDocumentary Letters of Credit follow the Uniform Customs and Practice for Documentary Credits (UCP) and Supplement for Electronic Presentation Version 2.0 (eUCP), published by the International Chamber of Commerce, Paris, France.

BUYER document. The eUCP Documentary Letter of Credit is issued by a commercial bank to the Seller/Beneficiary on behalf of the Buyer/Applicant to support a purchase order.

The eUCP Documentary Letter of Credit is a Global Business Method document. The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.

eDLC Issue. The eDocumentary Letter of Credit is issued in SWIFT MT700 format using the field definitions in SWIFT Category 7 Documentary Credits and Guarantees.  The eDocumentary Letter of Credit is a credit instrument representing 110% of supporting funds in escrow or pledged by the issuing bank.  The drawee funds are available with a bank that undertakes the Buyer’s obligation to pay. The eDocumentary Letter of Credit is implemented and managed under ICC Uniform Customs and Practice for Documentary Credits (UCP).  

Goods Shipment. After shipment the Seller submits the required transaction documents to the negotiating bank for examination and negotiation under ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).  The documents are submitted as electronic records with a Notice of Completeness as the Negotiable Document Set, which includes as a minimum, but not limited to: transport document (evidence of movement); packing list (evidence of content); invoice (evidence of value); inspection certificate (evidence of quality); and trade bill of exchange (demand for payment).  The Negotiable Document Set may also include a certificate of origin, insurance certificate, fumigation certificate, phytosanitary certificate, and third party inspection certificate.

Document Submission.  The Negotiable Documents Set (NDS) transportation documents are prepared in conformance with the issued eUCP Documentary Letter of Credit.  The Negotiable Document Set can be submitted in electronic record format in PDF (Portable Document Format), or in digital document format (Google Doc, MS Word, HTM, GIF, JPEG).  Document data fields must meet UCP and eUCP rules and guidelines. Submissions may be a combination of paper and/or email attachments or hyperlinks.

Examination.  The Negotiable Document set is examined by the negotiating and issuing banks using the ICC Customs and Practice for Documentary Credits and Guide to Documentary Credits, Fifth Edition, by Gary Collyer.  Examination for compliance or non-compliance (discrepancies) are presented to the Buyer for approval or non-approval prior to payment of the Bill of Exchange presented by the Seller in the Negotiable Document Set.

Release of Funds.  The Buyer (Applicant) accepts the Negotiable Document Set and authorizes the bank to release the payment to the Seller (Beneficiary) in accordance with the Bill of Exchange payment destination.

Release of Documents.  The bank releases the documents to the Buyer / Applicant.

Customs.  The eDocumentary Letter of Credit is a payment facility. The transport documents in electronic form may, or may not, be acceptable for customs clearance. This is usually the case with ocean shipments.  If hard copy paper documents are required by the Buyer, the Seller will provide them.

eDocumentary Letter of Credit Terms and Conditions. The following eDocumentary Letter of Credit terms and conditions must be agreed to between the Buyer / Applicant and Seller / Beneficiary.

Tag:  Nomenclature … Field

40A:  Form of eDocumentary Letter of Credit:              Transferable or Non-Transferable

40E:  Applicable Rules:                                                   eUCP LATEST VERSION

50:    Buyer / Applicant Name, Address, Tel & Email:   Applicant

59:    Seller/Beneficiary Name, Address, Tel & Email:   Beneficiary

32B:  Currency Code:                                            USD, EUR, GBP or Other        

39A: Percentage Credit Amount Tolerance:         +5% / -5% PERCENT (or higher)

41D:  With (Drawee):                                                       Issuing or Confirming Bank

42C: Drafts At                                                  AT SIGHT; or ____ Days From Transport Date

42D: Drawee                                                                    Paying Bank

43P: Partial Shipments                                                     Allowed (or not Allowed)

43T: Transhipments                                                          Allowed (or not Allowed)

44E  Loading/Dispatch At/From                                      Port, airport or place

44F:  For Transport To                                                      Port, airport or place

44C: Latest Date of Shipment                           10 Days prior to DTP expiry date

45A: Goods Description                                    General description of goods and services.

46A: Documents Required:                  

Transport Document (Bill of Lading, Air waybill), Consignee (Buyer/Obligor), notify party, freight collect or prepaid; Packing List; Invoice; and Certificates; Notice of Completeness.

47A: Additional Conditions

1. All documents in English

2. Spelling mistakes will not be considered discrepancies

3. Third party documents are acceptable

4. Transport documents showing 2 or more agents for the carrier is acceptable

The eUCP Documentary Letter of Credit is issued by a financial institution to the Beneficiary on behalf of the Applicant.  Documentary Letter of Credits follow the Uniform Customs and Practice for Documentary Credits (UCP) as published by the International Chamber of Commerce, Paris, France.  Under these guidelines the eUCP Documentary Letter of Credit is irrevocable for the stipulated time it is open. It is supported by 110% commitment from a third party.  After a eUCP Documentary Letter of Credit is issued changes must be made by the amendment process.

eDocumentary Letter of Credit- eDLC TEMPLATE  /  Documentary Letter of Credit - eDLC EXAMPLE 

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13.0   AMD - Amendment Application

AMENDMENT APPLICATION (AMD) - The Digital Trade Payment or the eUCP Documentary Letter of Credit may be amended with the agreement of both the Buyer and Seller.  The application for amendment is initiated by the Buyer or Seller; but both principals must agree to the amendment for it to become effective.

BUYER and/or SELLER document. The Amendment Application may be initiated by the Buyer or Seller. The AMD information is used to amend an issued Digital Trade Payment or the eUCP Documentary Letter of Credit.  

The Amendment Application is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

The Digital Trade Payment or eUCP Documentary Letter of Credit may be amended as follows:

1. Increase amount of  by:  Currency / Amount:

2. Decrease amount of  by: Currency / Amount:

3. To an aggregate amount of:  Currency / Amount:

4. Latest shipment date changed to:

5. Expiration date changed to:            

6. Other amendments requested:

Amendment Application - AMD TEMPLATE  /  Amendment Application - AMD EXAMPLE 

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14.0  TDC - eUCP Documentary Letter of Credit Transfer Application

DOCUMENTARY LETTER OF CREDIT TRANSFER APPLICATION (TDC)  - Under the UCP Articles a beneficiary to a eUCP Documentary Letter of Credit may transfer the credit to a 2nd beneficiary if the credit so allows. The 2nd beneficiary becomes the shipper of record and is entitled to the proceeds of the credit.  However, UCP guidelines allow for the 1st beneficiary to substitute his invoice for the 2nd beneficiary’s for a higher amount; thus receiving his margin on the transaction. The transfer of a Documentary Letter of  Credit to a 2nd beneficiary requires that the terms and conditions of the master credit are acceptable to the 2nd beneficiary; only the unit prices, quantities and shipping dates are allowed to change in the 2nd issued credit.

SELLER document. The eUCP Documentary Letter of Credit Transfer Application can be initiated by Seller. The TDC information is used to transfer issued  eUCP Documentary Letter of Credit to a second beneficiary.  

The Transfer Application is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021 and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019)

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

GENTLEMEN: For value received, we hereby irrevocably transfer to:

 

 Name and Address of Second Beneficiary:

Advise through:

All of our rights to draw up to, but not exceeding, the sum of  ___ USD ___ EUR  ___ OTH ___

under the above Credit, subject to the same terms and conditions, with the exception of the following:

(1)  QUANTITY OF GOODS: The quantity is to be _____.

Quantity must be stated and partial shipments allowed in the Documentary Letter Credit.

(2)  UNIT PRICE: the unit price is to be _____ USD___ EUR___(OTH)

The unit price must be stated in the Documentary Letter of Credit.        

(3)  LATEST SHIP DATE:

Cannot be later than the latest ship date of the Documentary Letter of Credit.

(4)  Presentation Period: Documents must be presented within …. days after the date of

 …. issuance of the Bills of Lading or other transport documents.

(5)  Expiration Date:  The date the transferred portion of the Documentary Letter of Credit is to expire is …. (Must be at least five business days before the expiration of the Credit) .... Insurance: Valuation for insurance shall be based on ….  % of the valuation invoiced by the second beneficiary. Insurance (if required) must be at least 110% of the gross amount of each drawing.

DRAFT SUBSTITUTION:

We WILL NOT substitute our drafts and invoices for those of the second beneficiary.

We WILL substitute our drafts and invoices for those of the second beneficiary

Documentary Letter of Credit Transfer Application - TDC TEMPLATE  /  Documentary Letter of Credit Transfer Application - TDC EXAMPLE 

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15.0  AOP - Assignment of Proceeds Request

ASSIGNMENT OF PROCEEDS (AOP) - The beneficiary to a eUCP Documentary Letter of Credit may assign the proceeds to a third party in whole or in part. An Assignment of Proceeds can be put in place by the beneficiary at any time prior to the eUCP Documentary Letter of Credit’s negotiation and payment.

SELLER document. The Assignment of Proceeds is initiated by the beneficiary. The AOP information is used to pay a third party from the proceeds of the documentary letter of credit.

WE HEREBY AUTHORIZE AND DIRECT FUNDS TO PAY THE PROCEEDS OF EACH DRAFT DRAWN BY US, PAYABLE TO MY ORDER, UNDER AND IN COMPLIANCE WITH THE ABOVE DESCRIBED LETTER OF CREDIT (“CREDIT”), IF AND WHEN PAYMENT OF SUCH DRAFT IS MADE BY YOU, AS FOLLOWS (CHOOSE ONE).

1. ________ % OF THE PROCEEDS OF EACH DRAWING, BUT NOT EXCEEDING THE AGGREGATE AMOUNT OF __________ FOR ALL SUCH DRAWINGS,

OR,

2. AT THE RATE OF AMOUNT  __________ PER ________ (UNIT), BUT NOT EXCEEDING ….  FOR ALL DRAWINGS,

OR,

3. CURRENCY AMOUNT OF: ________________

TO: ASSIGNEE:  ___________________________

 WHOSE ADDRESS  IS:  _____________________

TO ASSIGNEE BANK: ______________________

The Assignment of Proceeds is a trade transaction document in the Global Business Method. The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021 and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019)

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Assignment of Proceeds Request - AOP TEMPLATE  /  Assignment of Proceeds Request - AOP EXAMPLE 

AOP Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

       

 Module 5: Logistics

The Global Business Method provides Logistics documents for digital trade transactions.

Logistics in international freight means moving a seller’s goods and services from his country to a buyer in another country.  The central document in this process is the waybill, or transport document. The transport document is the contract for carriage entered into by the shipper.  Depending on the mode of transportation, the transport document may be an ocean bill of lading, an air waybill, a rail waybill, a truck or straight waybill or a courier receipt.  A subset of the documents generated by the logistics process is the Negotiable Document Set (NDS).  These are the documents agreed upon between the buyer and seller that represent title to the goods and are negotiated (exchanged) for payment.  The Negotiable Document Set evidences movement, content, value and quality; represented by the transport document, packing list, invoice and quality certificate.

16.0  SLI - Shipper’s Letter of Instructions

SHIPPER’S LETTER OF INSTRUCTIONS (SLI) - The Shipper’s Letter of Instructions is to the logistics company that will be contracted to arrange transportation of the goods from the Seller to the Buyer..  The Shipper’s Letter Instructions may also request the logistics company to prepare the negotiable document set.

SELLER document. The Shipper’s Letter of Instructions is initiated by the shipper. The SLI information is used by the logistics company to contract with a carrier for movement of the shipper's goods and prepare the transportation documents.  

The information contained in the Shipper’s Letter of Instructions includes the shipper’s name and address, and the names and addresses of the consignee and notify party, and the ports of embarkation and debarkation. This information is used in the transport documents and whatever certifications are required for shipment.

The Shipper’s Letter of Instructions is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions, effective 1 October 2021 and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019)

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

 Shipper’s Letter of Instructions - SLI TEMPLATE  /   Shipper’s Letter of Instructions - SLI EXAMPLE 

SLI Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

17.0  BOL - Bill of Lading (Transport Document)

The BILL OF LADING (BOL) (TRANSPORT DOCUMENT) is the contract between the Seller and the freight company for shipping goods from one location to another.  There are five basic modes of transport; Ocean, Air, Truck, Rail and Courier.  Each transport mode, or combination of modes, has some common requirements for information on its transport contract.  However, only the Ocean Bill of Lading conveys the title of ownership of the goods being transported.  Sea waybill, Express waybill, Air waybill, Rail waybill and Truck or Straight waybills do not convey title by themselves.  All bills of lading submitted in electronic format for negotiation are required to have the consignee stipulated.

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Bill of Lading (Transport Document) - BOL TEMPLATE  /  Bill of Lading (Transport Document) - BOL EXAMPLE 

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18.0  PKL -  Packing List

PACKING LIST (PKL) - The Packing List is the list of exactly what makes up the discrete shipment to the Buyer.  The Packing List may or may not reflect the Purchase Order, depending on what is physically included in the shipment.  The Packing List is a source document that is used to construct the Invoice.

SELLER document. The Packing List is compiled by the Seller. The PKL information is used to construct the Invoice for the goods being shipped to the Buyer.  The Packing List of goods shipped must exactly match the value of those goods.

The Packing List is a trade transaction document in the Global Business Method. The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Packing List- PKL TEMPLATE  /   Packing List - PKL EXAMPLE 

PKL Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

19.0  INV - Invoice

INVOICE (INV) - The Invoice is the formal statement to the Buyer requesting payment.  The commercial Invoice, or Invoice, uses the buyer’s Digital Trade Payment facility as its authority to request payment.  The Invoice is also used by exporting regulatory authorities as the source document for obtaining a Certificate of Origin.  The Invoice is also used for determining shipment value for generating a certificate of insurance.  The Invoice is used by the importing country for assessing import duties and tariffs.

SELLER document. The Invoice is initiated by Seller as evidence of the value of what is being shipped and transferred to the Buyer.

The Invoice is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Invoice - INV TEMPLATE  /  Invoice  - INV EXAMPLE 

INV Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

20.0  TBE - Trade Bill of Exchange

TRADE BILL OF EXCHANGE (TBE) - The Trade Bill of Exchange is the demand for payment under a Digital Trade Payment.  The Trade Bill of Exchange is prepared by the Seller and submitted to the Buyer as part of the Negotiable Document Set in conjunction with the required documents for negotiation and payment.

SELLER document. The Trade Bill of Exchange is initiated by Seller. The TBE information is used to state the amount of payment demanded, the authority for the demand, and the instructions where to send the funds.

The Trade Bill of Exchange is a trade transaction document in the Global Business Method. The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Trade Bill of Exchange - TBE TEMPLATE / Trade Bill of Exchange - TBE EXAMPLE

TBE Webinar English   /  Spanish  /  German  /  Arabic  /  Mandarin

 Module  6: - SETTLEMENT    

The Global Business Method provides Settlement documents for digital trade transactions.

Settlement happens when the Seller’s Negotiable Document Set is exchanged for the Buyer’s funds. The documents presented provide evidence of movement, value, content and quality; and are compared with the required documents for payment and the terms and conditions agreed to in the Digital Trade Payment facility.

URDTT eRules for Payment

Digital Trade Payment under ICC Uniform Rules for Digital Trade Transactions is both simple and straightforward.

The Buyer initiates a digital trade transaction with a Purchase Order supported by a Digital Trade Payment facility with a Payment Obligation Buyer (POB) to the Seller.  The terms and conditions of the purchase are defined by a Digital Trade Payment facility.  The Payment Obligation Buyer is paid in exchange for the Seller’s digital shipping documents; to include the bill of lading, packing list, invoice and the like.

The Buyer may enlist a Financial Services Provider to undertake his Payment Obligation Buyer to make the payment to the Seller; or Financial Services Provider Payment Undertaking Financial (PUF).  The Financial Services Provider may be the ultimate buyer or a third party that undertakes the payment.  

The shipping documents in digital form are used for negotiation and payment.  After payment the hard copies may be couriered to the Buyer or ultimate buyer if they are needed to clear customs, such as with an ocean shipment.

21.0  POB - Payment Obligation Buyer

PAYMENT OBLIGATION BUYER (POB) - The Payment Obligation Buyer is incurred by the

Buyer/Obligor to the Seller/Beneficiary upon compliance with the terms and conditions of the Digital Trade Payment by the Seller. A Payment Obligation Buyer may only be amended or canceled by a Principal Party with the  agreement of the other Principal Party, any Financial Services Provider that has added its FSP Payment Undertaking Financial, and any other Beneficiary. This Payment Obligation Buyer is issued in accordance with ICC Uniform Rules for Digital Trade Transactions (URDTT); ICC Publication No. KS102E.

BUYER document. The Payment Obligation Buyer is initiated by Buyer. The POB information is used to evidence the commitment of the Buyer to pay the Seller for the goods and services contacted for in the Purchase Order and supported with the Digital Trade Payment.

The Payment Obligation Buyer is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Payment Obligation Buyer. - POB TEMPLATE / Payment Obligation Buyer. - POB EXAMPLE

POB Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

22.0  PUF - Financial Services Provider Payment Undertaking Financial

FINANCIAL SERVICES PROVIDER UNDERTAKING FINANCIAL (PUF) - The Financial Services Provider Undertaking Financial agrees to effect payment for the Payment Obligation Buyer to the Seller/Beneficiary incurred by the Buyer/Obligor for the subject Digital Trade Payment. Note: The Buyer remains liable under the Payment Obligation Buyer unless otherwise agreed by each Principal Party and any other Beneficiary.  This FSP Payment Undertaking Financial must be issued in accordance with all applicable laws.  ICC Uniform Rules for Digital Trade Transactions (URDTT); ICC Publication No. KS102E.

BUYER document. The Financial Services Provider Payment Undertaking Financial is initiated by Buyer. The PUF information is used to transfer the Buyer’s payment obligation to the Seller to a Financial Services Provider to undertake the payment.  The Buyer, Seller and Financial Services Provider must all concur with the undertaking.  There must be full disclosure of the parties.

The Financial Services Provider Payment Undertaking Financial is a trade transaction document in the Global Business Method.   The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

FSP Payment Undertaking Financial - PUT TEMPLATE / FSP Payment Undertaking Financial - PUF EXAMPLE

PUF Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

23.0  INP - Inspection Certificate

INSPECTION CERTIFICATE (INP) - The Inspection Certificate is initiated by the shipper or by a third party inspection agency of the goods prior to shipment.

SELLER document. The Inspection Certificate is initiated by Seller. The INP information is used to evidence the quality of the goods being shipped.

The Inspection Certificate is a trade transaction document in the Global Business Method.   The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Inspection Certificate - INP TEMPLATE / Inspection Certificate - INP EXAMPLE

INP Webinar English /   /  Spanish  /  German  /  Arabic  /  Mandarin

24.0  COO - Certificate of Origin

CERTIFICATE OF ORIGIN (COO) - The Certificate of Origin is required by many countries for clearing goods from customs at destination.   The Certificate of Origin is obtained by the Seller from a  Chamber of Commerce or trade association.  

SELLER document. The Certificate of Origin is initiated by Seller. The COO information is used as evidence of the origin of the shipped goods and services.

The Certificate of Origin is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Certificate of Origin - COO TEMPLATE / Certificate of Origin - COO EXAMPLE

COO Webinar English /   /  Spanish  /  German  /  Arabic  /  Mandarin

25.0  BEC - Beneficiary’s Certificate

BENEFICIARY CERTIFICATE (BEC) - The Beneficiary’s Certificate is a statement by the beneficiary certifying something is true, or was accomplished, i.e. documents were forwarded or the goods met a certain specification.

SELLER document. The  Beneficiary’s Certificate is initiated by Seller. The BEC information is used to evidence something is true or was accomplished.

The Beneficiary’s Certificate is a trade transaction document in the Global Business Method.   The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Beneficiary’s Certificate - BEC TEMPLATE / Beneficiary’s Certificate - BEC EXAMPLE

BEC Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

26.0  NOC - Notice of Completeness

The NOTICE OF COMPLETENESS (NOC) is the electronic document cover letter from the Seller or his agent conveying the negotiable documents.  The Notice of Completeness serves as notification that the presentation is complete and is now considered as a presentation requiring examination.

SELLER document. The Notice of Completeness is initiated by Seller. The NOC information is used as an electronic document cover letter to convey negotiable documents from the Seller to the Buyer.

The Notice of Completeness is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Notice of Completeness - NOC TEMPLATE / Notice of Completeness - NOC EXAMPLE

NOC Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

Seller / Beneficiary’s Negotiable Document Set (NDS)

The NEGOTIABLE DOCUMENT SET (NDS)  are the required documents listed in either the Digital Trade Payment or eUCP Documentary Letter of Credit.  The  Negotiable Document Set must include a Notice of Completion (required by ICC eRules) listing the digital documents being presented.  The Negotiable Document Set normally includes the transport document, invoice, packing list, inspection certificate, certificate of origin, phytosanitary certificate, fumigation certificate and insurance certificate.  

Export License

The Seller may need to arrange for regulatory authorization to export certain types or quantities of goods to a specific country.  

Customs Broker

Prior to taking the goods in charge at the port of unloading, the Buyer must pay any customs duties to the regulating authorities that are due.  The customs broker obtains the customs release, freight release, regulatory agency clearances.

27.0  EXM - Examination Report

EXAMINATION REPORT (EXM) - The Digital Trade Payment Negotiable Document Set is examined under UCP guidelines.  An Examination Report is produced for review by the Buyer.  The Buyer’s approval is required prior to the release of funds to the Seller.  All required documents by the Digital Trade Payment are in electronic format acceptable to URDTT rules.

BUYER or Third Party document. The Examination Report is initiated by the Buyer. The Buyer may contract with a third party to examine the Negotiable Documents Set.  he EXM information is used by

The Examination Report is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Negotiation of the Digital Trade Payment Facility

Documents submitted as a Negotiable Document Set are compared with the issued Digital Trade Payment facility for the trade transaction.  An Examination Report is produced for review by the Buyer.  The Buyer’s approval is required for prior to the release of funds.

Examination Report - EXM TEMPLATE / Examination Report - EXM EXAMPLE

EXM Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

28.0  ROF - Release of Funds

RELEASE OF FUNDS (ROF) - The Digital Trade Payment Release of Funds document is evidence the Buyer approves the Examination Report and releases the funds (or not) for the transport documents to the Seller.   

BUYER document. The  Release of Funds is initiated by Buyer. The ROF information is used by the Seller to release for printing and/or courier paper originals the Buyer transferring title to Buyer.

to transfer issued  eUCP Documentary Letter of Credit to a second beneficiary.  

The Release of Funds is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Release of Funds - ROF TEMPLATE / Release of Funds - ROF EXAMPLE

ROF Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

29.0  ROD - Release of Documents

RELEASE OF DOCUMENTS (ROD) - The Digital Trade Payment Release of Documents document is evidence the Seller accepts and/or received the funds (or not) for the transport documents to the Buyer.

SELLER document. The  Release of Documents is initiated by Seller.

The Release of Documents document is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Release of Documents - ROD TEMPLATE / Release of Documents - ROD EXAMPLE

ROD Webinar Script (English)   /  Spanish  /  German  /  Arabic  /  Mandarin

        

30.0  CPF - Company Profile Form (CPF) and Member Application

COMPANY PROFILE FORM (CPF) - The Company Profile Form for Due Diligence investigations are standard practice worldwide for companies moving money from one country to another.  Each country has their own unique rules for due diligence depending on the type of company that wants to receive or transfer funds.

BUYER and SELLER document. The Company Profile Form can be initiated by either the Buyer or Seller. The CPF) information is used by a Principal Party (Buyer or Seller) for “due diligence” of the transaction’s counter party.

The  Company Profile Form is a trade transaction document in the Global Business Method.  The Global Business Method, or GBM, is used for managing international trade transactions online using electronic documents instead of paper.  The Global Business Method documents follow the guidelines for electronic documents published by the International Chamber of Commerce under the Uniform Rules for Digital Trade Transactions (URDTT v1.0, effective 1 October 2021), and ICC Customs and Practice for Documentary Credits (UCP 600) Supplement for Electronic Presentation Version 2.0 (eUCP v2.0 in effect 1 July 2019).

The objective of the Global Business Method is to assure payment for the exchange of title for goods and services between a buyer and seller.  Assurance of payment is totally dependent on the parties to the transaction following proper trade transaction guidelines.  The idea that payment can be “guaranteed” by a third party, such as a bank or insurance company, is wishful thinking.  

Company Profile Form - CPF TEMPLATE / Company Profile Form - CPF EXAMPLE

CPF Webinar English  /  Spanish  /  German  /  Arabic  /  Mandarin

Trade Transaction Completion

The transaction is completed when the Seller receives payment from the Buyer in exchange for the Seller’s title transfer of goods represented by the Negotiable Document Set.  This is accomplished with  Digital Trade Credit and eUCP Documentary Letter of Credit transaction funds are received by the Seller and the documents are received by the Buyer.

End of digital trade transaction

Reference List

  1. www.ITFglobal.ie
  2. Uniform Rules For Digital Trade Transactions
  3. Incoterms® 2020 Rules
  4. The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 600 (UCP)
  5. The Uniform Rules for Collections, 1995 Revision, ICC Publication no. 522 (URC)
  6. Uniform Customs and Practice for Documentary Credits for Electronic Presentation (EUCP) Version 2.0
  7. Uniform Rules for Collections (URC 522) Supplement for Electronic Presentation (eURC) Version 1.0
  8. Users Guide to the eUCP v 2.0; January 2021, by David Meynell
  9. ICC Non Bank Letter of Credit under UCP
  10. Trade Terms Glossary
  11. Common Shipping Terms and Abbreviations
  12. ICC 2016 Global Trade and Finance Survey
  13. Export Success Wheel; Simona Racek
  14. Guide to Trade Finance; Trade Finance Global
  15. Incoterms 2020; Trade Finance Global
  16. Category 7 Message Reference Guide - Standards for MT, November 2018-2019

COPYRIGHT NOTICE

 

The entire eDTT Workspace and Global Business Method, including the database, its functionality, forms, videos, and presentation slides, are Copyright ©2022 by authors John W. Dunlop, Simona Racek and David Cerasi. All Rights Reserved. The eDTT Workspace and Global Business Method may not be copied or duplicated in whole or part by any means without prior agreement in writing from the authors. Reproduction without permission from the authors is prohibited.

   

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