FACTORING ARRANGEMENTS

Factoring: The unprecedented liberalization of international trade had created a number of complicated problems. Once the goods have been supplied to the importer (the buyer), the exporter (the seller) has the risk of non-payment on due date. This may be due to many reasons like the delayed delivery of the Read more…

METHODS OF EXPORTING

Goods and services can be sold abroad (Exporting) through mainly two methods i.e. Direct Exporting and Indirect Exporting. Direct Exporting It is arranged either as a joint venture or by establishing a subsidiary company. The objective of direct representation is to centralize marketing of the product and dispense with the Read more…

TERMS OF CONTRACT

In negotiating a contract, there must be a determination of the party by the exporter regarding bearing the various charges as they are incurred. These terms are now standardized under Incoterms 2000 of International Chamber of Commerce, Paris. The more common terms of contract are: CIF (Cost, Insurance, Freight) It Read more…

INVOICE

Commercial invoices are needed by the overseas buyer and must contain the correct information. Generally, this includes a statement of the nature of the contract (e.g. ‘CIF New York’) a description of the goods, and their price. Most countries specify the information they require to be shown on invoices; for Read more…

INSURANCE

It is essential to have complete insurance cover against loss or damage which may occur during shipment. The contract most clearly state as to who is responsible for arranging the insurance at all stages from the time when the merchandise leaves the exporter’s hands until the buyer takes possession. The Read more…