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 »
The Bretton Woods system of monetary system management created the rules for the commercial and financial relations among the world’s major developing nations. Until the early 1970s, the Bretton Woods system was effective in maintaining the standard or fixed exchange rates for the leading nations that had created it, especially the United Nations. Due to this fixed exchange… Read More »
The United Nations (UN) liner code was formulated to cover the following fundamental objectives and basic principles: The purpose of UN liner code is to facilitate the orderly expansion of world seaborne trade; The objective is to stimulate the development of regular and efficient liner services adequate to the requirement of the trade concerned; The objective is to ensure a balance of interests between suppliers and… Read More »