1. International Payments
Methods and documentation

2. 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

3. Methods of Payment 1- Advance payment 2-Direct remittance
3-Open trade account
4-Documentary collection(Presentation;30,60,90 DA)
5-Letter of credit

4. Letter of credit 4- Types of 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
Refer page 951

5. 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

6. Issuance of L/C Summary

7. Amendment to L/C

8. Utilization of L/C

9. L/C Detailed Check List (P-1)

10. L/C Detailed Check List (P-2)

11. Documents required to claim credits from bank
1-Draft ( Bill of exchange)
2- Invoice
3- Bill of lading/ AWB/ACN
4-Insurance policy /certificate
5- Certificate of origin
6- Packing list
7-Other documents as specified in L/C (CTD)
8-Discrepencies and consequences

12. X EXPORT CREDIT & GAURANTEE CORPORATION
1- What is ECGC
2-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
Refer page-435

13. Reading References
Nabhi’s Export Manual and documentation- Chapters 6,39 and 40