Commercial Terms – Incoterms ® 2020
Suitability: All functions, no minimum requirements. Import and Export
Overview: A compact 7-hour presentation dealing with the use of Commercial Terms and with specific emphasis on the correct use of the ICC Incoterms Rules. It is a full and interactive day, and an excellent forum for questions & answers.
Detail: Understanding what Commercial Terms do and do not do;
The structure of correctly written Commercial Terms;
Common problems with common terms;
Limiting risks, misalignments and misunderstandings;
Understanding the difference between customs valuation symbols and commercial terms – fob vs. FOB, c.i.f. vs. CIF etc.
The SA VAT ACT & Exporting
Suitability: Finance, Sales and Operations – requires a level of prior experience. Export Only
Overview: A course covering the complexities of the vendor’s VAT position dealing with export and offshore supplies in international trade.
Detail: Export Regulation R.316 and Indirect Exports;
Zero-Rated Direct Exports & VAT;
Special Supplies
Return & Repair;
Merchanting and offshore selling, etc.
We will also look at when the vendor may raise their invoices in foreign currencies and when they may not; how the rate of VAT influences the currency of the transaction; how to deal with pre-payments and extended credit.
Indirect exports are in most instances subject to VAT at the standard rate. However, there are (often complex) opportunities where the vendor may elect to zero-rate the supply of the movable goods, subject to certain requirements being met. Importantly, the requirements for documentary compliance are covered in detail.
Exchange Control and Trade
Suitability: Finance and Operations – requires prior experience. Import, Export. & Merchanting, as applicable.
Overview: A compact 7-hour presentation covering the Export, Import and Merchanting exchange control regulations and reporting standards for business. It is a full and interactive day.
Detail: Exports and the UCR system both old and new system
The UCR and SACU; Merchanting models; Direct Importing;
Sales at Sea; Importing In-Bond for onward distribution;
We will study the text of the applicable Manuals and Regulations with emphasis on timescales, permissible models and models which require approval; either through an Authorised Dealer or directly from the SARB
Risk management and challenges around models involving the Common Monetary Area (Namibia, Lesotho, Swaziland and South Africa) are analysis and unpacked.
L/Cs for Beneficiaries
Suitability: Finance and Operations – requires prior experience. The ideal candidate will be a delegate who works in finance or operations, but who needs to interpret the credit as the beneficiary, without necessarily having a banking background. Export Only.
Overview: This presentation/workshop deals with various aspects of international bank payments and specifically the operation of the Documentary Credit (the L/C) – for the beneficiary.
Detail: The day is a consideration of how the credit works, and to determine at what point and under what conditions specific wording needs to be incorporated into the credit and for what purpose.
Credits are by their very nature and definition are specific, individualized instruments and the workshop cannot over every eventuality, however the core requirements of compliance and basic non-compliance issues are covered. The course is designed to serve as a platform for further study.
Merchanting
Suitability: The delegate should have a fair understanding of trade as this is an advanced course.
Overview: This full day compact course runs for 7-hours and deals with the complexities of being the ‘middle man’ in a merchanting arrangement.
Detail:
Exchange Control issues;
The various VAT positions in merchanting;
Marine Insurance complications when merchanting;
Synchronizing the appropriate Commercial Terms;
Changing documents to preserve anonymity;
Merchanting payment mechanisms.
Export Best Practice
Suitability: All sectors – Sales, Finance, Management and Operations – Export and Merchanting models Only.
Overview: This is a high-energy seven-hour session which works best if the room comprises Management / Finance / Operations / Sales and/or Marketing; not everybody, but the key players in each budget area. The optimum is to have 12-15 people in the room.
Detail: Working with a white board or flip chart and the co-operation of the participants, we draw up a model or a structure of the company’s ‘current practice’.
In this process, we uncover the ‘challenges’ around Exchange Control, VAT, Customs and contracts etc. Once we have this exposed, we can start to build ‘Best Practice’ models – on the understanding that nothing physically must change i.e. the way you physically operate is not restricted, but rather how you may better administer and price the models correctly – meaning ‘legally’ first and foremost.
Import Best Practice
Suitability: All sectors – Procurement, Finance, Management and Operations – Import models Only.
Overview: This is a high-energy seven-hour session which works best if the room comprises Management / Finance / Operations / Procurement; not everybody, but the key players in each budget area. The optimum is to have 12-15 people in the room.
Detail: Working with a white board or flip chart and the co-operation of the participants, we draw up a model or a structure of the company’s ‘current practice’.
In this process, we uncover the ‘challenges’ around Exchange Control, VAT, Customs and contracts etc. Once we have this exposed, we can start to build ‘Best Practice’ models – on the understanding that nothing physically must change i.e. the way you physically operate is not restricted, but rather how you may better administer and price the models correctly – meaning ‘legally’ first and foremost.
Logistics: VAT & Exchange Controls
Suitability: Clearing Agents, Freight Forwarders and Carriers or consolidators
Overview: A compact 7-hour presentation dealing with,
- Import forwarding “release” only;
- Import forwarding “release” without clearing, but freight collect;
- Import forwarding combined with clearing;
- Import Clearing only;
- Export Clearing only;
- Export forwarding combined with clearing, freight prepaid.
Detail: What is the significance of the house bill in the above?
How should you handle Finance Fees under the various rates of VAT?
We will also consider the Logistics service-providers’ Exchange Control position when the underlying model is Merchanting (or ‘cross-trade’).
If you are unsure, contact me; start the conversation.