Category Archives: Business

Liner and Tramp Shipping

The Bulk Cargo requires shipping services in which large quantity of one type of cargo can be carried at low per unit cost. These services are provided by carriers known as Tramps. Quite naturally, there are different types of tramp ships to carry different kinds of bulk cargo. On the other hand, carriers which provide regular and scheduled… Read More »

Chartering Practices

When a tramp carrier is engaged, it is said to be under the charter, as one charterer hires either the whole or the bulk of its space. A tramp may be chartered in some ways. Three most important forms of engagement are: Voyage Charter Time Charter Bareboat Charter or Charter by Demise. Let us now discuss them in… Read More »

Basic Principles of ECGC Operation

There are two basic principles on which ECGC (Export Credit Guarantee Corporation of India Limited) works: 1. The spread of Risk: An exporter is required to insure all the shipments that may be made by him during the next two years. To avoid undue difficulty to the exporters, exceptions have been made in respect of transactions made against… Read More »

Organizations Covering Credit Risk

There are more than 40 organizations providing cover for credit risk, the world over. They are all members of a union International Union of Credit and Investment Insurers’ also popularly known as the BERNE UNION, In most countries, these organizations are government controlled through a few of them are privately owned. In India, we have the ‘Export Credit Guarantee Corporation of… Read More »

Role of Clearing and Forwarding Agent in Foreign Trade

Clearing and forwarding agents are a link between the owners of goods and owners of means of transport. They help the cargo owners in the efficient movement of goods to the buyers by completing some procedural and documentary formalities. They are experts and knowledgeable in laws and regulations governing shipment of goods through the customs authorities as well as… Read More »

Export Declaration Forms During Foreign Trade

All exports to which the requirement of declaration applies must be declared on appropriate forms. These forms are as follows: GR Form (in duplicate): It is used to export to all countries other than Nepal and Bhutan. PP Form (in duplicate): It is used to export to all countries other than Nepal and Bhutan by parcel post. SOFTEX… Read More »

Small Exporter’s Policy

The small exporter’s policy is the standard policy. It incorporates certain improvement regarding cover, to encourage small exporters to obtain and operate the policy, The main features of small exporter’s policy are listed below point-wise: The policy is issued to exporters whose anticipated export turnover for the next 12 months does not exceed Rs.50 lakhs. The policy is… Read More »

Customs Clearance

The concept of customs operation is as old as the trade itself, In the olden days, there was a tradition followed by traders of offering gifts, etc. to Kings to be able to sell their merchandise in different territories. The same practice has been formalized in the modern economic and political systems. Goods are subjected to levy of duties,… Read More »

Foreign Exchange

Foreign exchange means foreign currency and includes: all deposits, credit, and balances payable in foreign currency, any drafts, traveler’s cheques, letters of credit and bills of exchange expressed or drawn in Indian currency but payable in any foreign currency and; any instrument payable at the option of the drawee or holder thereof or any other party to it,… Read More »