SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Identify the financial elements of export transactions 
SAQA US ID UNIT STANDARD TITLE
243213  Identify the financial elements of export transactions 
ORIGINATOR
SGB Transport and Logistics Operations 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 11 - Services Transport, Operations and Logistics 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5  8 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is for persons working in the International Trade environment especially within exports. The learner is able to source and select finance for international trade.

This unit standard is intended for learners who will demonstrate:
  • An ability to acquire a wide range of technical skills.
  • An ability to discuss a considerable choice of procedures.
  • A broad knowledge that incorporates theoretical concepts.
  • An ability to critically analyse information.
  • An ability to make judgements to unknown problems.
  • An ability to work on its own with complete responsibility.

    A person credited with this unit standard is able to:
  • Explain the financing implications of payment methods and terms.
  • Explain the financing implications of using bank guarantees and other guarantees.
  • Explain the foreign exchange market, spot, forward, futures and options.
  • Identify sources of relevant finance.
  • Determine the financial requirements of a trade transaction/project. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in:
  • Communication Literacy at NQF level 4.
  • Mathematical Literacy at NQF level 4.
  • Computer Literacy at NQF level 4. 
    		•

    UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the financing implications of payment methods and terms. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The importance of identifying and selecting efficient and effective financial instruments are explained as it relates to export transactions. 

    ASSESSMENT CRITERION 2 
    The financial instruments available are explained as they relate to each export transactions. 

    ASSESSMENT CRITERION 3 
    Short, medium and long term finance are defined as they relate to export transactions. 
    ASSESSMENT CRITERION RANGE 
    "Pre-shipment' and "post-shipment" finance, export factoring and invoice discounting, specialist export finance schemes offered "with recourse" and "without recourse", supplier credit and buyer credit financing, hire purchase and leasing as export financing and forfeiting.
     

    SPECIFIC OUTCOME 2 
    Explain the financing implications of using bank guarantees and other guarantees. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The importance of financial guarantees in International Trade is explained according to different export transactions. 

    ASSESSMENT CRITERION 2 
    Various types of guarantees are identified and their role in International Trade, with particular emphasis on export finance, are explained as they relate to different export transactions. 
    ASSESSMENT CRITERION RANGE 
    Tender guarantee, performance bond, advance payment guarantee, progress payment guarantee, retention bond, overdraft guarantee, warranty bond, standby letter of credit.
     

    ASSESSMENT CRITERION 3 
    The difference between "on demand" and "conditional" guarantees are explained in terms of different export transactions. 

    ASSESSMENT CRITERION 4 
    The procedures for issuing guarantees are described for different export transactions. 

    ASSESSMENT CRITERION 5 
    The various forms of counter-trade are explained in terms of different export transactions. 

    SPECIFIC OUTCOME 3 
    Explain the foreign exchange market, spot, forward, futures and options. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Operations of the foreign exchange market and its participants are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 2 
    Rates of exchange and the manner in which they are quoted are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 3 
    Factors that effect foreign exchange rate movements are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 4 
    Factors that influence the forward exchange market are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 5 
    Operations of currency futures and the factors that influence their pricing are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 6 
    Different futures contracts are explained as they relate to different export transactions. 
    ASSESSMENT CRITERION RANGE 
    Currency futures contracts, forward exchange contracts.
     

    ASSESSMENT CRITERION 7 
    Reasons for the development of currency options and the terminology that applies to currency options are explained as they relate to different export transactions. 

    ASSESSMENT CRITERION 8 
    Fixed forward rates and option rates are calculated using the spot rate of exchange as a base and adjusting the premium and discount as they relate to different export transactions. 

    SPECIFIC OUTCOME 4 
    Identify sources of relevant finance for exports. 
    OUTCOME RANGE 
    Financial institutions, CGIC, IDC, World Bank, International Monetary Fund, confirming houses and export finance houses. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Various financing alternatives for each export transaction are ascertained as they relate to different transactions. 

    ASSESSMENT CRITERION 2 
    Various sources of donor and aid funding are identified as they relate to different export transactions. 

    SPECIFIC OUTCOME 5 
    Determine the financial requirements of a trade transaction/project. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The financing needs of the customer (buyer) and supplier are identified as they relate to specific export transactions. 

    ASSESSMENT CRITERION 2 
    The various financial instruments and the cost implications are identified as they relate to specific export transactions. 

    ASSESSMENT CRITERION 3 
    Financial instruments applicable to each transaction are evaluated and the instruments are selected in accordance with company policy. 

    ASSESSMENT CRITERION 4 
    The application procedures for each transaction are concluded as they relate to specific export transactions. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a learner must be registered as an assessor with the relevant ETQA or an ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any Institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a MOU exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the Moderation Guidelines and the agreed ETQA procedures. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • Circumstances which give rise to the need for trade finance
  • Institutions offering trade finance:
    > Multilateral organisations:
    > World bank
    > International Monetary Fund
    > Africa Development Bank
    > African Export/Import Bank
    > Donor agencies:
    > United Nations
    > European Union
    > National government donor agencies (e.g. Danida, Sida, Finida)
    > National governments (DTI)
    > Commercial organisations:
    > Banks
    > Non-banks
  • Types of trade finance
    > Short/medium/long
    > Pre/post-shipment
    > Rand versus foreign currency
    > Bank versus non-bank
    > Import versus export financing
    > Trade credit
    > Local bank finance
    > Customer foreign currency accounts
    > Euro currency finance
    > Factoring
    > Forfeiting
    > Discounting (bills of exchange, invoices, letters of credit)
    > Confirming house products and services
    > IDC multi-shift scheme
    > Short-term Export Finance Guarantee Scheme (for small and medium size businesses)
    > Export Finance & Credit Insurance Scheme (for capital goods and services)
  • Trade Finance from the Exporter's viewpoint:
    > Options
    > Advantages and disadvantages
    > Costs
    > Negotiating process with importer
  • Trade Finance from the Importer's viewpoint:
    > Options
    > Advantages and disadvantages
    > Costs
    > Negotiating process with exporter
  • Accessing Trade Finance:
    > Meeting financier requirements
    > Negotiation tactics
    > Projecting the right image
    > Application procedures
  • Legal aspects of payments:
    > Bills of exchange and promissory notes:
    > Definition/function
    > Contracting parties
    > Rights, obligations and liabilities of the parties
    > Discharge of the instruments
    > International conventions
    > Variations in the bill of exchange
    > Bank collections:
    > Legal definition
    > Parties to the contract
    > Bank instruction
    > Uniform Rules for Collection (URC)
    > Delivery of documents contrary to instruments
    > Rights, obligations and liabilities of the parties
    > Discharge of the instruments
    > Documentary credits:
    > Legal definition
    > Parties to the contract
    > Bank instruction
    > Disclaimers
    > Uniform Customs and Practice for Documentary Credits (UCP)
    > Fundamental principles underlying documentary credits
    > Autonomy of the credit
    > Doctrine of strict compliance:
    > Legal relationships involving the exporter, importer and the banks
    > Expiry date of the credit
    > Law applicable to the credit
    > Damages for failure to pay a credit
    > Rights, obligations and liabilities of the parties
    > Discharge of the instruments
  • Foreign exchange contracts (forward cover):
    > Parties to the contract
    > Rights, obligations and liabilities of the parties
    > Discharge of the contract
  • Demand guarantees:
    > Kinds of guarantees:
    > Bank guarantees procured by the buyer
    > Bank guarantees procured by the seller
    > ICC rules for demand guarantees
    > Parties to the contract
    > Rights, obligations and liabilities of the parties
    > Discharge of the contract
  • Financing contracts:
    > Types of financing contract:
    > Factoring
    > Forfeiting
    > Financial leasing
    > Other forms of merchant finance
    > Parties to the contract
    > Rights, obligations and liabilities of the parties
    > Discharge of the contract
  • International conventions influencing the contracts 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems related when sourcing and selecting finance for international trade. 

    UNIT STANDARD CCFO ORGANISING 
    Organise oneself and one's activities so that all requirements are met in achieving competence when sourcing and selecting finance for international trade. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, evaluate, organise and critically evaluate information when sourcing and selecting finance for international trade. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively when sourcing and selecting finance for international trade. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  96401   National Certificate: Export Administration  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.