CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

          This certification is essential for all members of a Bank Trade Finance Department.  The syllabus covers key aspects required by team members to effectively discharge their duties.

Trade Finance is one of the traditional forms of bank finance in India. In view of reforms and liberalisation, this has gained a new significance.

 Many of the practices in trade finance have evolved over a period of time and some are guided by Ministry of Commerce and Reserve Bank of India, besides WTO and International Chamber of Commerce through UCPDC 600.

With the increase in the volume of trade both domestically and internationally, there is a need for trade finance professionals from banks as well as corporates.

The Objectives of this IIBF Examination is as under:

 (i) To provide candidates with competencies required to function as trade finance practitioners.

(ii) To enable candidates to possess the needed skill and knowledge to understand clients' needs.

(iii) To enable candidates to handle trade bills of individual clients.

(iv) To enable candidates to attain high ethical and professional standards.

ELIGIBILITY

1. Members and Non-Members of the Institute

SUBJECT OF EXAMINATION : INTERNATIONAL TRADE FINANCE

PASSING CRITERIA : Minimum marks for pass in the subject is 60 out of 100.

EXAMINATION FEES* :

Particulars For Members For Non-Members

First attempt Rs.1,000/- * Rs.1,500/- *

Subsequent each attempt Rs.1,000/- * Rs.1,500/- *

* Plus Convenience charges and Taxes as applicable.

Please Note : Candidates are required to Register for every attempt separately.

As a measure to streamline the traffic for registration, Institute will charge regular examination fee to candidates who registers for the examination during the regular open period from registration.

For the extended days of registration, late fee of Rs.200 plus taxes, will be charged in addition to regular examination fee. This extended days of registration, also gives candidates addition opportunity to register for the examination, having missed the regular open period of registration.

MEDIUM OF EXAMINATION : Examination will be conducted in English only.

PATTERN OF EXAMINATION :

(i) Question Paper will contain 120 objective type multiple choice questions for 100 marks.

(ii) The examination will be held in Online Mode only

(iii) There will NOT be negative marking for wrong answers.

PERIODICITY AND EXAMINATION CENTRES :

a) Examination will be conducted on pre-announced dates published on IIBF Web Site. Institute conducts examination on half yearly basis, however periodicity of the examination may be changed depending upon the requirement of banking industry.

PROCEDURE FOR APPLYING FOR EXAMINATION:

Application for examination should be registered online from the Institute’s website www.iibf.org.in.

PROOF OF IDENTITY:

Non-members applying for Institute’s examinations / courses are required to attach / submit a copy of any one of the following documents containing Name, Photo and Signature at the time of registration of Examination Application.

1) Photo I / Card issued by Employer or 2) PAN Card or 3) Driving Licencse or 4)

Election Voter’s I/Card or 5) Passport 6) Aadhaar Card

STUDY MATERIAL / COURSEWARE

The Institute has developed a courseware to cover the syllabus.  As the subject is dynamic, the courseware should not be considered as the only source of information while preparing for the examinations.

Candidates are advised to go through the updates put on the IIBF website from time to time and go through Master Circulars / Master Directions issued by RBI and publications of IIBF like IIBF Vision, Bank Quest, etc.

All these sources are important from the examination point of view. Candidates are also to visit the websites of organizations like RBI, SEBI, BIS, IRDAI, FEDAI etc. besides going through other books & publications covering the subject / exam concerned etc. Questions based on current developments relating to the subject / exam may also be asked.

Cut-off Date of Guidelines / Important Developments for Examinations

The Institute has a practice of asking questions in each exam about the recent developments / guidelines issued by the regulator(s) in order to test if the candidates keep themselves abreast of the current developments.

However, there could be changes in the developments / guidelines from the date the question papers are prepared and the dates of the actual examinations.

In order to address these issues effectively, it has been decided that:

(i) In respect of the examinations to be conducted by the Institute for the period February to July of a calendar year, instructions / guidelines issued by the regulator(s) and important developments in banking and finance up to 31^st December will only be considered for the purpose of inclusion in the question papers".

(ii) In respect of the examinations to be conducted by the Institute for the period August to January of a calendar year, instructions / guidelines issued by the regulator(s) and important developments in banking and finance up to 30th June will only be considered for the purpose of inclusion in the question papers.

SYLLABUS :

The details of the prescribed syllabus which is indicative are furnished in the booklet.

However, keeping in view the professional nature of examinations, all matters falling within the realm of the subject concerned will have to be studied by the candidate as questions can be asked on all relevant matters under the subject.

Candidates appearing for the examination should particularly prepare themselves for answering questions that may be asked on the latest developments taking place under the various subject/s of the said examination although those topics may not have been specifically included in the syllabus.

Further, questions based on current developments in banking and finance may be asked.

Candidates are advised to refer to financial news papers / periodicals more particularly

“IIBF VISION” and “BANK QUEST” published by the Institute.

Candidates appearing for this examination should be familiar with:

• Bank -to- bank reimbursements under Documentary Credits ICC Brochure no 725

(URR 725)

• URC – Uniform customs Rules for Collection

• URDG - Uniform Rules for Demand Guarantee

• URR 525 - Uniform Rules for Reimbursement

• Foreign Trade Policy 2015-2020.

• Customs Procedures – Imports / Exports

• Role of FEDAI, EXIM Bank, ECGC

• Various facilities to Exporters and Importers including forfaiting and factoring.

• Counter trade and Merchanting trade.

• Theories of International Trade.

• Terms of Trade.

• WTO - Its Impact

• Exchange Control / relating to International Trade

• Inco terms Meaning - Obligation of buyers and sellers

• Letter of Credit and UCPDC 600 - Meaning Parties to LC, Different types of LC,

Mechanics of LC, Articles of UCPDC

• Exports

• Pre Shipment - Credit

• Post Shipment - CreditImports

• Bilateral trade, counter trade, high seas sales.

• Maritime frauds, modus operandi and prevention initiatives

• International Finance - method of finance

• Buyers Credit

• Suppliers Credit

• Packing Credit

• LIBOR

• Documents used in Trade - Bill of Exchange, Invoice, Bill of Lading, Airway Bill,

Insurance Policy etc.

• Insurance including marine insurance.

Multiple Choice Questions (MCQs) and Answers

“The Institute conducts its examinations through Multiple Choice Questions (MCQs).

These MCQs are part of the Question Bank of the Institute and its Intellectual Property.