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Insights on finance, working capital, and the realities of international trade: exports, imports, shipping, logistics, and customs clearance.
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Pre-Shipment Packing Credit in Exports, Limit Calculation & More
Packing credit or Pre-Shipment Credit is a type of finance provided by financial institutions to exporters to make the necessary arrangements for manufacturing the goods for their export orders
What is an Airway Bill (AWB)?
An Airway Bill (AWB) is a document that consists of all the details about the goods that are transported via air cargo. Airway Bills are issued by a carrier or the agent representing the carrier and have details such as the shipment contents, the details of the supplier and the recipient, terms, and conditions under which the trade is to occur, and other vital information.
Inland Container Depot (ICD) - Meaning & The complete process
An Inland Container Depot (ICD) is a container storage facility situated in the hinterlands, away from any major port. Shipping companies use ICDs to store and move containers before and after transporting them to the seaport.
Standby Letter of Credit (SBLC)| Meaning, Types & How It Works?
‘Standby Letter of Credit (SBLC) is a type of letter of credit (LC) where the issuing bank commits to pay to the beneficiary if the applicant fails to make the payment.
Types of Letter of Credit in Exports - Clauses, Payment Terms & More
There are several types of letter of credit which are used by businesses for International or Domestic trade transactions. It is important to understand these types and their purpose, to use the appropriate letter of credit for your trade transaction.
Forward Contract | Meaning, Types, Examples & more
A forward contract is a financial derivative that is customized between two parties, wherein a commodity is bought or sold at a predetermined price but on a future date. These contracts are not standardized or regulated by any third-party authority and are considered a type of over the counter (OTC) deal between the two parties.
Surrender Bill of Lading (BL) in shipping
Surrender BL is a legal document issued by the exporters to terminate their ownership over the sent goods and transfer it to the importer. When the importer has completed the payment of the goods, the exporter gives up his rights over the sent goods and cannot reclaim the ownership. Surrender BL is necessary for the transfer of ownership of goods.
What is a Back to Back Letter of Credit?
When a transaction takes place between a buyer and a seller keeping an intermediary in the loop, the type of LC used in such cases is known as 'Back to Back letter of credit'. In this article get a complete understanding of what is a Back to Back LC, how it works with an example, its format, terms & conditions and associated risks.