It is interesting to note that the article 19 applies even when the credit does not call for a Multimodal transport document explicitly. If the the port of loading or the port of discharge required by the credit is not a port but is an inland place, it is evident to all parties that more than one mode of transport will be utilized and hence UCP Article 19.
All the banks and financial institutions handling LC transactions know that they are required to deal with documents and not concerned with the underlying goods/services/performance, but when you minutely study the rules around the value and the description to be provided/not provided on the invoice with examples you will notice that with these rules a sincere attempt has been made to maximize the authenticity and genuineness of the goods/services/performance.
The World Bank was created in 1944 at the Bretton Woods Conference. The World Bank is headquartered in Washington DC and has more than 100 offices in member countries.
SWIFT or Society for Worldwide Inter-bank Financial Telecommunication is a global provider of financial secure messages. It provides a network to allow both financial and non-financial institutions to exchange financial transactions in a secured manner.
Trade finance may come in the form of secured or unsecured loans or lines of credit from banks or financial institutions. Pre-shipment financing is especially important to smaller enterprises because the international sales cycle is longer than the domestic sales cycle.
In today's global markets a good understanding of how foreign exchange can affect your business and investment decisions is crucial. Derivative products facilitate hedging of currency volatility risk and opportunity to make speculative profits. In this part we shall discuss Futures, Option and Swaps with examples.
Foreign exchange trading market happens to be one of the largest financial markets in the world. On an average, foreign exchange worth $5.3 trillion is traded every day.
The fundamental purpose of a Letter of credit is to provide transaction payment security to the beneficiary and documentary performance to the applicant and hence all LCs are fundamentally similar. There are however a few categories of LCs which do have a customized usage.
Incoterm minimizes the risk of dispute arising in the sales contract. We have discussed DAT and DAP in Part I now let us discuss the balance incoterms which are a part of both Incoterms 2000 and Incoterms 2010.
Incoterms are a set of three-letter standard trade terms commonly used in international contracts for the sale of merchandise.
An understanding of the most common discrepancies that banks find in examining documentary credit (DC) presentations can instruct the exporters and help them avoid the common rejections.
Closer Economic Relations (CER) is a free trade agreement entered into by governments of Australia and New Zealand on 28th March, 1983.
AFTA concord was signed in Singapore in 1992 and has 10 countries, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. These countries have also formed an association known as ASEAN – Association of South East Asian Nations.