The Export (Quality Control and Inspection) Act was enacted in the year 1963 to strengthening the export trade through quality control and pre-shipment inspection. The act empowers the government not only to notify the commodities which may be subjected to compulsory quality monitoring and inspection before export but also specify the type of quality control or inspection. The Act… Read More »
The salient features of commercial shipping can be summarized as under: Shipping of goods is an international activity perpetually exposed to change in the international environment. Commercial shipping is subjected to periodic cycles of depression and buoyancy in business. The highly capital-intensive nature of the industry necessitates Large financial resources, and Adequate utilization of capital. International mobility of ships… Read More »
After the pro-forma invoice is accepted by the importer, the exporter must prepare a commercial invoice. The commercial invoice is required by both the exporter (to obtain the necessary export documents, to enable the consignment to be exported, to prove ownership and to enable payment) and importer (who require the commercial invoice to facilitate import of goods into the country… Read More »
FOB (Free On Board) contract has the following duties for the exporter: Supply the contracted goods in conformity with the contract of sale and deliver the goods on board vessel named by the buyer at named port of shipment; Bear all costs and risks of the goods until such time as they shall have effectively passed the ship’s rail;… Read More »
‘Deemed Exports‘ refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies in received either in Indian rupees or free foreign exchange. The following categories of supply of goods by the main/sub-contractors shall be registered as “Deemed Exports” under this policy provided the goods are manufactured in India: Supply of… Read More »
Multimodal transport is commonly known as referring to a transport operation that is carried out using different modes of transport such as railway, waterway, and airway. A single operator organizes it. Multimodal transport is a legal concept strictly defined in the United Nations Convention on the International Transport of Goods and other international instruments, where the specified liability… Read More »
CIF (Cost, Insurance and Freight) contract has the following duties for exporter: Supply the goods in conformity with the contract sale, arrange at his on expense for the shipping space by the usual route and pay freight charges for the carriage of goods; Obtain at his own risk and expense all documentation regarding governmental – authorization necessary for… Read More »
The Ricardian theory of trade focuses on the comparative advantage of the nation. According to the Ricardian theory of trade, comparative advantage determines the pattern of trade. Ricardo asserted that even if a nation does not possess an absolute advantage, there are changes of gains through trade among the nations by comparative advantage. The Ricardian theory is based on… Read More »
London Inter-Bank Bid Rate (LIBID) is the rate bid by banks on Eurocurrency deposits. This is a kind of international rate that banks lend to other banks.It is calculated as one eight percentage point lower than the London Inter-Bank Offered Rate (LIBOR). It is also described as the main interest rate at which major banks in The London… Read More »
The London Inter-Bank Offered Rate (LIBOR) is considered as a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market or also known as interbank market. LIBOR is generally higher than the London Interbank Bid Rate (LIBID), the rate at which banks are… Read More »