international payments
DESCRIPTION
International Payments. Methods and documentation. Collection of payments for exports. Registration of Exporters: Import-Exporters Code ( IEC No .) from Regional licensing authority - PowerPoint PPT PresentationTRANSCRIPT
International Payments
Methods and documentation
Collection of payments for exports
• Registration of Exporters: Import-Exporters Code (IEC No.) from Regional licensing authority
• Registration cum Membership Certificate (RCMC) of Export Promotion Councils/ Commodity boards eg APEDA,FIEO ( Unless exempted under Govt)
• Obtaining Permanent Account NO. PAN/BIN• Registration with VAT/Sales Tax authorities (Essential to get
exemption for exports)
• Registration under Central Sales Tax Act ( Use of form H and related record of exports)
• Registration with Excise Authorities (mfg only)
• Authorized Foreign Exchange Dealers• Exemptions to legal requirements
– Personal Remittances– FCNR/NRE Accounts– SEZ/EOU Units….and others
Methods of Payment
1- Advance payment
2-Direct remittance
3-Open trade account4-Documentary collection(Presentation;30,60,90 DA)
5-Letter of credit
Letter of credit
1-What is a letter of credit; Contract terms?
2- Parties to letter of credit -Applicant, Beneficiary, Issuing Bank, advising Bank, negotiating
Bank)
3-Uniform customs & practices -ICC (Adopted by 165 countries)
4- Types of letter of credit -Revocable or irrevocable
-Payable at sight/deferred L/c -Transferable L/C -Revolving L/C -Transit L/C
Letter of credit (contd.)
-Back to back L/C -Acceptance L/C
-Anticipatory credits -Installment credits -Restricted and unrestricted - Standby L/C-Confirmed v/s unconfirmed L/C
5-Acceptance of L/C by exporter- Check List
Issuance of L/C Summary
Amendment to L/C
Utilization of L/C
L/C Detailed Check List (P-1)
L/C Detailed Check List (P-2)
Documents required to claim credits from bank
1-Draft ( Bill of exchange)2- Invoice3- Bill of lading/ AWB/ACN4-Insurance policy /certificate5- Certificate of origin6- Packing list7-Other documents as specified in L/C (CTD)
8-Discrepencies and consequences
X EXPORT CREDIT & GAURANTEE CORPORATION
1- What is ECGC2-Risks covered by ECGC
-Insolvency of buyer-Failure of payment –specific conditions-Political risks
3- Risks not covered by ECGC-Commercial disputes, product defects, Exchange fluctuations, failure to get import permissions-Loss of goods covered by marine insurance-Exporter’s failure to comply with contract terms
Reading References
• Nabhi’s Export Manual and documentation- Chapters 6,39 and 40