Download - International Payments
![Page 1: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/1.jpg)
International Payments
Methods and documentation
![Page 2: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/2.jpg)
Collection of payments for exports
• Registration of Exporters: Import-Exporters Code (IEC No.) from Regional licensing authority
• Registration cum Membership Certificate (RCMC) of Export Promotion Councils/ Commodity boards eg APEDA,FIEO ( Unless exempted under Govt)
• Obtaining Permanent Account NO. PAN/BIN• Registration with VAT/Sales Tax authorities (Essential to get
exemption for exports)
• Registration under Central Sales Tax Act ( Use of form H and related record of exports)
• Registration with Excise Authorities (mfg only)
• Authorized Foreign Exchange Dealers• Exemptions to legal requirements
– Personal Remittances– FCNR/NRE Accounts– SEZ/EOU Units….and others
![Page 3: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/3.jpg)
Methods of Payment
1- Advance payment
2-Direct remittance
3-Open trade account4-Documentary collection(Presentation;30,60,90 DA)
5-Letter of credit
![Page 4: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/4.jpg)
Letter of credit
1-What is a letter of credit; Contract terms?
2- Parties to letter of credit -Applicant, Beneficiary, Issuing Bank, advising Bank, negotiating
Bank)
3-Uniform customs & practices -ICC (Adopted by 165 countries)
4- Types of letter of credit -Revocable or irrevocable
-Payable at sight/deferred L/c -Transferable L/C -Revolving L/C -Transit L/C
![Page 5: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/5.jpg)
Letter of credit (contd.)
-Back to back L/C -Acceptance L/C
-Anticipatory credits -Installment credits -Restricted and unrestricted - Standby L/C-Confirmed v/s unconfirmed L/C
5-Acceptance of L/C by exporter- Check List
![Page 6: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/6.jpg)
Issuance of L/C Summary
![Page 7: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/7.jpg)
Amendment to L/C
![Page 8: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/8.jpg)
Utilization of L/C
![Page 9: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/9.jpg)
L/C Detailed Check List (P-1)
![Page 10: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/10.jpg)
L/C Detailed Check List (P-2)
![Page 11: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/11.jpg)
Documents required to claim credits from bank
1-Draft ( Bill of exchange)2- Invoice3- Bill of lading/ AWB/ACN4-Insurance policy /certificate5- Certificate of origin6- Packing list7-Other documents as specified in L/C (CTD)
8-Discrepencies and consequences
![Page 12: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/12.jpg)
X EXPORT CREDIT & GAURANTEE CORPORATION
1- What is ECGC2-Risks covered by ECGC
-Insolvency of buyer-Failure of payment –specific conditions-Political risks
3- Risks not covered by ECGC-Commercial disputes, product defects, Exchange fluctuations, failure to get import permissions-Loss of goods covered by marine insurance-Exporter’s failure to comply with contract terms
![Page 13: International Payments](https://reader033.vdocument.in/reader033/viewer/2022061607/56814496550346895db13782/html5/thumbnails/13.jpg)
Reading References
• Nabhi’s Export Manual and documentation- Chapters 6,39 and 40