INTERNATIONAL BANKING

INTERNATIONAL BANKING
SWIFT = The society for Worldwide Inter-bank Financial Transactions FEDWIRE = USA RTGS = Real Time Gross Settlement system CHIPS = Clearing House Inter Bank Payment System Independent of FRB FR = Federal Reserve Ban ok USA CHAPS = Clearing House Automated Payment System UK
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INCOTERMS 2000
E Term: The seller makes the goods available to the buyer at the seller's own premises. EXW - EX WORKS (...named place) Ship, Air, Rail & Truck OK. "Ex Works" (EXW) means seller fulfills obligation to deliver when he has made goods available at his premises or another named place (i.e., works, factory, warehouse, etc.) to buyer.
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 Seller is not responsible for loading goods in vehicle provided by buyer or for clearing goods for export. Minimum obligation for seller Buyer has to bear all costs & risks in taking goods from seller's premises.

F Terms: Seller is called upon to deliver goods to a carrier appointed by buyer. FCA - FREE CARRIER (...named place) Ship, Air, Rail & Truck OK. Term has been designed to meet requirements of modern transport, particularly such "multi-modal" transport as container or "roll on - roll off" traffic trailers & ferries.

 It is based on principle as FOB except that seller fulfills his obligations when he delivers goods into custody of carrier at named point.

 Risk of loss or damage to goods is transferred from seller to buyer at that time and not at ship's rail. "Received for Shipment" Bill of Lading is acceptable in lieu of "On Board" Bill of Lading. This allows exporters to receive shipping documents more quickly & to get paid in more timely manner.
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 "Carrier" means any person by whom or in whose name contract of carriage by road, rail, air, sea or combination of modes has been made. When seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by a person so defined.
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FAS - FREE ALONGSIDE SHIP (...named port of shipment) Ship Only

"Free Alongside Ship" (FAS). Seller fulfills his obligation to deliver when goods have been placed alongside vessel at named port of shipment. Buyer has to bear all costs & risks of loss or damage to goods from that moment. FAS term requires seller to clear goods for export.
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FOB - FREE ON BOARD (...named port of shipment) Ship Only

Seller fulfills his obligation when goods are placed on board a ship by seller at a port of shipment named in sales contract. Risk of loss of or damage to goods is transferred from seller to buyer when goods pass ship's rail. All costs from that point forward, including freight & insurance, are for buyer's account. Requires seller to arrange export clearance. Term can be used only for sea or inland waterway transport.
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 C Terms: Seller must contract for carriage, but without assuming risk of loss or damage to goods. CFR - COST AND FREIGHT (...named port of destination) Ship Only. Seller must pay costs & freight necessary to bring goods to named destination, but risk of loss or damage to goods, as well as any additional costs due to events occurring after time of delivery, are transferred from seller to buyer when goods pass ship's rail in port of shipment.
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 Term requires seller to clear goods for export. Term should only be used for sea & inland waterway transportation.

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CIF - COST, INSURANCE AND FREIGHT (...named port of destination) Ship Only Seller delivers when goods pass ship's rail in port of shipment. Seller must pay costs & freight necessary to bring goods to named port of destination but risk of loss or damage, as well as additional costs due to events occurring after time of delivery are transferred from seller to buyer.

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 Seller has to procure marine insurance against buyer's risk of loss or damage to goods during carriage. Seller to clear good for export. Term should be used only for sea & inland waterway transport.

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CPT - CARRIAGE PAID TO (...named place of destination) Ship, Air, Rail & Truck
Seller delivers goods to carrier nominated by him, but seller must pay cost of carriage to bring goods to named destination. Buyer bears all risks & any other costs occurring after goods have been so delivered. CPT term requires seller to clear goods for export.

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CIP - CARRIAGE & INSURANCE PAID TO (...named place of destination) Ship, Air, Rail & Truck Seller has to procure insurance against risk of loss of or damage to goods during carriage. Seller contracts with insurer & pays insurance premium. CIF is used for goods carried by sea, while CIP is used irrespective of the mode of transport. Allows exporter greatest control over all aspects of shipment.
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D Terms: Seller has to bear all costs & risks needed to bring the goods to country of destination
DAF - DELIVERED AT FRONTIER (...named place) Rail & Truck OK. Term is used when goods are being moved overland, & delivery of goods will take place at frontier of an adjoining country.

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 Seller delivers when goods are placed at disposal of buyer on arriving means of transport not unloaded, cleared for export, but not cleared for import at named point & place at frontier, but before customs border of adjoining country. Frontier must be clearly named. May be used irrespective of mode of transport when goods are to be delivered at a land frontier.

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DES - DELIVERED EX SHIP (...named port of destination) Ship Only

Seller delivers when goods are placed at disposal of buyer on board ship, not cleared for import at named port of destination. Seller must bear all costs & risks involved in bringing goods to named port destination before discharging. Can be used only when goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in port of destination.
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DEQ - DELIVERED EX QUAY (DUTY PAID) (...named port of destination) Ship Only
Seller delivers when goods are placed at disposal of buyer not cleared for import on quay at named port of destination. Seller bears costs & risks involved in bringing goods to named port of destination & discharging goods on quay.

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 Requires buyer to clear goods for import & to pay for all formalities, duties, taxes & other charges upon import. Can be used only when goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto quay at port of destination.

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DDU - DELIVERED DUTY UNPAID (...named place of destination) Ship, Air, Rail & Truck
Seller delivers goods to buyer, not cleared for import, & not unloaded from any arriving means of transport at named place of destination. Seller has to bear full cost & risk involved in bringing goods thereto other than, where applicable, any "duty" (which includes responsibility for risks of carrying out of customs formalities, & payment of formalities, customs duties, taxes & other charges) for import in country of destination.
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 Such "duty" has to be borne by buyer as well as any costs & risks caused by his failure to clear goods for import in time. May be used irrespective of mode of transportation.

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DDP - DELIVERED DUTY PAID (...named place of destination) Ship, Air, Rail & Truck
Seller delivers goods to buyer, cleared for import, & not unloaded from any arriving means of transport at named place of destination. Seller must bear all costs & risks involved in bringing goods thereto including, where applicable, any "duty" (which includes responsibility for & risk of carrying out of customs formalities, customs duties, taxes & other charges) for import in country of destination
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 DDP term may be used irrespective of mode of transport.

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Incoterms 2010
Incoterms 2010 By International Chamber of Commerce (ICC) ICC Publication No. 715, 2010 Edition Implementation date: 1 January 2011.

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INCOTERMS
Revision, first in decade, reflects profound changes that have taken place in global trade since 2000. These include increased importance of cargo security, resulting new obligations on traders, developments in container transport, & 2004 revision of United States Uniform Commercial Code, which resulted in deletion of former US shipment & delivery terms.
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 Incoterms rules define responsibilities of buyers & sellers for delivery of goods under sales contracts. Incoterms 2010 takes into account latest developments in commercial practice, & updates & consolidates some of former rules. New classification system divides 11 Incoterms rules into two distinct groups:
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 Rules for any mode of transport: EXW [1] FCA [2] CPT [7] CIP [8] DAT - DAP [9-10-11-12] DDP [13]
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 Rules for waterway transport: FAS [3] FOB [4] CFR [5] CIF [6]

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 In addition to the 11 rules, Incoterms2010 includes: Extensive guidance notes & illustrative graphics to help users efficiently choose right rule for each transaction; New classification to help choosing most suitable rule in relation to mode of transport;

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 Advice for use of electronic procedures; Information on security-related clearances for shipments; Advice for use of Incoterms 2010 in domestic trade.

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 Incoterms 2010 reflects changes & evolutions in international business & commercial practice. Since 1936, ICC s Incoterms help traders avoid misunderstandings by clarifying costs, risks, & allocation of certain responsibilities of buyers & sellers in sales contracts.

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 ICC has been writing & publishing Incoterms rules for more than 70 years, providing importers, exporters, lawyers, freight forwarders, insurers & students in international arena with rules & guidance reflecting latest developments in trading environment.

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 Incoterms 2010 - Paper version ISBN 978-92-842-0080-1 Size 13 x 24 130 pages. 55,00 Incoterms 2010 - Paper version ISBN 978-92-842-0089-4 Size 13 x 24 250 pages. 60,00

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UCPDC / UCP and ISBP FEMA -1999 FEDAI Rules REMITTANCE SERVICES Inward Remittance FCRA Foreign Contribution ( Regulation ) Act, 1976 FIRC = Foreign Inward Remittance Certificate COLLECTION OF CHEQUES Cash Letter Services FOREIGN CURRENCY NOTES AND COINS CDF
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OUTWARD REMITTANCES Schedule I Schedule II Schedule III Form A1 / A2

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COLLECTION OF DOCUMENTARY BILLS Bill of Exchange Invoice Bill of Lading / Airway Bill Transport Documents

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Types of Bill of Lading Received for shipment Bill of Lading Short Form Bill of Lading Multimodal Transport Document Insurance Policy / Certificate Other Documents I.E. Code Number
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 Collection of Export Bill URC GR / PP / SOFTEX Form Procedure SDF Electronic Data Interchange XOS Statement Extension of time for Realization

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Process of collection of Outward (Export) bills DA / DP / At Sight / Usance Noting and Protesting Advance against Exports Remittances against exports Agency Commission, Legal Expenses, Testing Charges, Claims form the buyers

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Collection of Import Bills Bill of Entry FEMA Declaration Regulation of Imports Advance Remittance against Imports

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LETTER OF CREDIT PARTIES TO L/C Adding Confirmation Negotiating Bank Endorsing the L/C Reimbursement

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Export L/Cs Import L/Cs - Procedure Funded / Non Funded Limits Application Import Licence Copy of Contract Crystallization

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TYPES OF LC Scrutiny of Documents under LC UCP 600 ISBP

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ICC PUBLICATIONS
Rules of Arbitration - in force as from 1 January 1998 ICC DOCDEX RULES - ICC Rules for Documentary Instruments Dispute Resolution Expertise - First revision - In effect from 15 March 2002 International Standard Banking Practice for the Examination of Documents under Documentary Credits Subject to UCP 600 (ISBP) Published by ICC, Paris - Publication No. 681, 2007 Edition
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 STANDARDIZED RULES ON THE ENCASHMENT w.e.f. 1 January 1996 - PUBLICATION 522 OF ICC UCP 600 - (Deals with the transactions under Letters of credit) eUCP ISP 98 01/11/98 Standby letters of credit (including performance, financial, and direct pay standby letters of credit).
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 Uniform Rules for Demand Guarantees - URDG ICC Pub. No. 458 Amended w.e.f.01.07.2010 URR725 - UNIFORM RULES FOR BANK-TO-BANK REIMBURSEMENTS - IN FORCE SINCE 01/10/2008 INCOTERMS 2000 Arbitration and Conciliation - Dispute resolution systems for the transactions outside Letters of Credit
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TRADE FINANCE Pre-shipment Finance Post-shipment Finance PCFC FCBP Period of Credit Rates of Interest Procedure for Disbursement Repayment
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Duty Drawback Deemed Exports Purchase / Discount / Negotiation Advance against bill sent for collection Factoring Book Debts Forfeiting Buyer s / Supplier s Credit Guarantees ECGC
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 DEPOSIT SERVICES NRIs NRO NRE FCNR RFC RFC(D) EEFC

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COMPILED BY:KISHOR BHATT FOREX CONSULTATN A-501. GHB COMPLEX NR. ANKUR BUS STOP NARANPURA AHMEDABAD 380 013 TEL 2748 0452 M 93276 28737
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COMPILED BY:KISHOR BHATT FOREX CONSULTATN A-501. GHB COMPLEX NR. ANKUR BUS STOP NARANPURA AHMEDABAD 380 013 TEL 2748 0452 M 93276 28737
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