Course Code: INTL $729$

Course Name: Principles of Freight Forwarding

Activity: Module $4$

In this activity, you will order the procedural steps for the Letter of Credit and complete an Air Waybill and Draft based on a Letter of Credit.

$1.$ Match the number in the diagram to the step in the flow of documents and payment for a Letter of Credit.

Export Airfreight Shipment Sold against Letter of Credit

$1.$ Complete the Air Waybill Draft based on information given in the Letter of Credit. Be sure to recognize and select pertinent instructions or details when completing the Air Waybill Draft. Since the draft is made out to the order of the beneficiary, $($the beneficiary $-$ i$.$e$.,$ you$)$ you must endorse that draft.

Use the following pages in your Essentials of Freight Forwarding eTextbook:

Page $118$ Exporter$$s Checklist for Letter of Credit

Page $132$ Sample Instructions for Importer $($Letter of Credit$)$

Page $360$ UCP $600$ Articles $$ familiarize yourself with these Articles $($especially $19-24$ pertaining to transport documents.

Shipment: $51$ cartons of barbeque parts

Total weight: $883$ kg

The dimensions of each carton: $0\mathrm{.}48$ m L x $0\mathrm{.}48$ m W x $0\mathrm{.}48$ m H

Available flight: Air Canada, from Toronto to Tokyo.

Date shipped: January $24,2017$

Rate: CAD $$4\mathrm{.}00/$kg$/$vol

Establish the chargeable weight and the airfreight payable. Use both figures in your Air Waybill. $($Refer to conversion tables in Appendix $$B$).$

$$

LIVE!!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!!

Req by: TOR AUTOLCT In: AUT PRT $1/1/1707$:$40$ page $1$

INC CA $911030-00830-000$ Que: CA TOR LCT ADMR

Msg Type: Received Pos Dup: Pri: Time Created: $1/1/1701$:$33$

Completion: Message Active

Exception:

Correspondent: $0039388$ II Amount: $58,000\mathrm{.}00$

Name: SANWA BK LTD$.,$ OSAKA Address: Unavailable for this MSG Owner Office: TOR$/$LCT

City: Cntry: PC:

Parent ICN: Input test: N Swift OSN:$30$ROT$202081$

Service: SWF Ref: $30$SANWJPJSAXXX$68675$ Sequence:$2081$

Test Result: Tested

TO ROYAL BANK OF CANADA $-$ Toronto OSN $02081$

ONTARIO, CANADA RECEIVED $0135/30$

$3$ RN $30$SANWJPJSAXXX$68675$

SENT $1536/30$

FROM SANWJPJSAXXX

SANWA BK LTD$.$ OSAKA

N$/$A

OSAKA JAPAN

CIF # $0339388$ II UID:

MT $700$ ISSUE OF DOC CREDIT

PRIORITY $02$

$27/$ SEQUENCE OF TOTAL: $1/1$

$40$A$/$ FORM OF DOCUMENTARY CREDIT:

IRREVOCABLE

$20/$ DOCUMENTARY CREDIT NUMBER $412360927-209$

$31$C$/$ DATE OF ISSUE: $170101$

CANADA

$31$D$/$ DATE AND PLACE OF EXPIRY: $170201$

CANADA

$$

LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!!

Req By: TOR AUTOLCT In: AUT PRT $1/1/1707$:$40$ Page $2$

INC CA $911030-00830-000$ Que: CA TOR LCT ADMR pri: $150$ Dup: N

$50/$ APPLICANT:

YAMAMOTO BARBEQUE CORP

OSAKA

$59/$ BENEFICIARY:

CANADIAN MANUFACTURING INC.

$5678$ MISSISSAUGA RD$.$

MISSISSAUGA

CANADA

ICN: CA $911030-008830-000$ Que:CA TOR LCT ADMR Pri: $150$ Dup: N

$32$B $/$ AMOUNT: $58,000\mathrm{.}00$ US DOLLAR

$41$D $/$ AVAILABLE WITH $...$ BY $...$

ANY BANK

BY NEGOTIATION

$42$C $/$ DRAFTS AT $...$

SIGHT

$42$D $/$ DRAWEE:

SANWA BANK LTD$.$

OSAKA

$43$P $/$ PARTIAL SHIPMENTS: ALLOWED

$43$T $/$ TRANSHIPMENT: ALLOWED

$44$A $/$ PORT OF LOADING$/$AIRPORT OF DEPARTURE

TORONTO AIRPORT

$44$B $/$ PORT OF DISCHARGE$/$AIRPORT OF DESTINATION

OSAKA INTERNATIONAL AIRPORT

$44$C $/$ LATEST DATE OF SHIPMENT: $170125$

$45$A $/$ DESCRIPT OF GOODS AND OR SERVICES

BARBEQUE PARTS

CIP OSAKA

INSURE TO BE EFFECTED BY SHIPPER

$$

LIVE!!!! LIVE!!!!! LIVE!!!! LIVE!!!! LIVE!!!! LIVE!!!!

Req By: TOR AUTOLCT In: AUT PRT $1/1/1707$:$40$ PAGE $3$

INC CA $911030-00830-000$ Que: CA TOR LCT ADMR

$46$A $/$ DOCUMENTS REQUIRED:

$+$CLEAN AWB CONSIGNED TO THE SANWA BANK LTD

MATSUBARA BR MARKED FREIGHT PREPAID

NOTIFY THE APPLICANT AND KINTETSU EXPRESS

$+$SIGNED COMMERCIAL INVOICE IN TWO COPIES

$+$INSURANCE POLICY OR CERTIFICATE IN DUPLICATE

ENDORSED IN BLANK FOR $110-0/0$ OF THE INVOICE VALUE

INCLUDING: INSTITUTE CARGO CLAUSE A $($ALL RISK$)$

INSTITUTE WAR CLAUSE

INSTITUTE STRIKES RIOTS AND CIVIL COMMOTIONS

CLAUSES

CLAIMS TO BE PAYABLE IN JAPAN IN THE CURRENCY OF

THE DRAFT

$+$CERTIFICATE OF ANALYSIS IN TWO COPIES

$47$A $/$ ADDITIONAL CONDITIONS:

AIR WAYBILLS MUST INDICATE THE NUMBER OF THE

CREDIT. ONE SET OF NON$-$NEGOTIABLE DOCUMENTS MUST

BE ATTACHED TO AIR WAYBILL

$71$B $/$ CHARGES:

ALL BANKING CHARGES OUTSIDE OF JAPAN FOR SHIPPERS

ACCOUNT

$48/$ PERIOD FOR PRESENTATION:

DRAFTS MUST BE PRESENTED FOR NEGOTIATION WITHIN $16$ DAYS

AFTER THE DATE OF AWB OR OTHER DOCUMENTS, BUT WITHIN