Lesson-10 on Foreign Exchange

Question: What is Proforma Invoice?

Answer:

A form of quotation to a potential buyer inviting him to buy the goods on stated terms

Question: What are the different form of Export Finance?

Answer:

Exporters requires financial services at different stages

1.     Pre-shipment Credit

a)     Export Cash Credit (Hypo)

b)    Export Cash Credit (pledge)

c)     Export credit against Trust Receipt

d)    Packing Credit (PC)

e)     Back to Back Credit

f)      Advance against Red clause L/C

2.     Post Shipment Credit

                                                                                           i.     Negotiation of Document under L/C

                                                                                         ii.     Purchase of D/P & D/A Bills

                                                                                       iii.     Advance against Bills for collection

Question: What is Export Development Fund (EDF)?

Answer:

EDF is required to assure continued availability of fund to meet import requirement of nontraditional manufactured items particularly for new exporters.

                                         

Question: What are the Different shipping documents in Exports?

Answer:

A. Major Documents

i) Bill of exchange

ii) Bill of lading

iii) Shipping Invoice

iv) Insurance policy(In case of CIF Shipment)

B. Subsidiary Documents

i) Certificate of origin

ii) Pre-shipment Inspection Certificate

iii) Packing and Weight List

iv) GSP Certificate

v) Phyto-Sanitary Certificate

vi) Quality Control Certificate

vii) Visa or Consular invoice

viii) A declaration regarding the goods are not shipped Israeli Flag Vessel

ix) Any other documents specially asked in the credit.

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