Forward contract. Lock in an exchange rate with the bank until a certain future date, with currency projections against the spot rate though. In this case had an option to have Forward contracts, which allow Nodal fixed exchange rates in the future at no charge, the bank may impose a fee
The company expects to deal in both import and export transactions, in a combination of documentary letter of credit and open account transactions. Its primary markets will be the United States, China, India and possibly a foray into the European Union through Ireland.
An invoice, a bill of lading or a transport document issued in connection with the transport of the goods; however, when there is submitted a bill covering freight charges or a notice from the transporter to the consignee concerning a consignment of goods, and these documents contain the same information as specified in regular bills of lading, a bill of lading need not be submitted unless specially requested, a bill covering freight charges, a certificate of origin when preferential customs treatment is requested in accordance with
Thirdly, to provide other service delivered collection and post option. There are the other options that offer the satisfaction of the customer, who might chance his/her mind and situation about the unused foreign currency, which does not matter for someone. If the customers are interested, we will give collection box and deliver to keep every 6-12 month or made an appointment about one week before to collect it.
With the primary objective of incentivizing exports, various schemes like Export Oriented Units (EOUs), Special Economic Zones (SEZs), Duty Exemption Entitlement Schemes (DEECs), Manufacture under Bond etc. have been made available by the government to obtain inputs without the payment of customs duty/excise duty or to obtain refund of duty paid on inputs. In case of central excise, manufacturers can avail Cenvat Credit of duty paid on inputs and utilize the same for payment of duty on other goods
Cash in advance is the risk free payment methods except the potential consequences about non delivery of the goods by the seller. Exporter can avoid the risk of non payment since payment is recieved prior to shipment. This payment method is not favorable for buyer because buyer is concerned about the non delivery of goods when the payments made in advance. Accordingly it is not an competitive option for if customer has other vendors who offer more attractive payment methods.
Such financing instrument has gained its strategic importance as more economies view exports as a vital national objective and lead to increase in number of established ECAs and volumes of export credit transactions. During the 1990s, the annual volume of export credit provided by Organisation for Economic Cooperation and Development (OECD) countries averaged roughly $80-100 billion per annum (Maurer and Nakhood, 2003). Since then, volumes have grown, reaching a record of $514 billion in 2010 (Berne Union 2011).
The supply of services where the payment is in Indian Rupees but which is otherwise considered by the Reserve Bank of India (RBI) as having been paid in free foreign exchange is to be considered as supply under the export promotion schemes.
For our team project, we will be exporting LED light bulbs from India. This country has initiated an Indians Customs EDI System to facilitate trade and to exchange documents electronically. Vijay Anand, customs manager for India with Expediters International describes the export processes to be very simple, “If all the documentation are perfect, you can even clear customs on an export within three to four hours subject to the documentation” (new.export.gov) First, it is mandatory for an exporter to register their business with the Directorate General Foreign Trade (DGFT) or regional import export licensing authority. An Importer Exporter Code (IEC) is also mandatory, it is a 10-digit code which is issued by DGFT. (portology.com) The IEC code serves as an export license, a customs copy of this document needs to presented to the customs authority for clearing the goods and to prevent penalties and/or possible confiscation of the good (indolegal.com).Along with the IEC, Anand labels the Authorized Dealer (AD) code as a basic requirement for exporting from India, “Every exporter who’s involved in a foreign transaction should have a bank account, and this account should be informed to Indian customs and through the Bank of India, which is a federal bank”, an AD code is allotted to each bank (new.export.gov). Moreover, a Business Identification Number (BIN) is required to file a shipping bill for clearance of exports. Further documents that may be necessary in the
Covers debt and Current Account Deficit of Balance of Payment- Foreign capital inflow adds to our foreign exchange reserves, which is a cushion for the country’s Balance Of Payments.The reserve is used to cover maturing international debts and to cover the current account deficit of the Balance of Payment.