International Trade Finance and Forex Operations: Theory and Application

Cover
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
Acknowledgements
Chapter 1 Methods of Payment in International Trade: Special Reference to Letter of Credit
	1.1 Trade Finance in Today’s Context
	1.2 Contract of Sale and Parties Involved in International Trade Flow
	1.3 Payment Methods
	1.4 Roles and Responsibilities of Banks under Documentary Credit
	1.5 A Sample Letter of Credit (Created by MT 700, SWIFT)
	1.6 Export Bill Negotiation/Purchase/Discount
	1.7 Normal Transit Period
	1.8 Checklist: Recommendations for a Letter of Credit
	1.9 Factoring
	1.10 Forfaiting
Chapter 2 Domestic and International Regulatory Framework
	2.1 The Role of the Regulatory Bodies in International Trade
	2.2 Foreign Exchange Management Act, 1999, Regulatory Framework – An Overview
	2.3 Reserve Bank of India (RBI)
	2.4 Foreign Exchange Dealers Association of India (FEDAI)
	2.5 Directorate General of Foreign Trade and Foreign Trade Policy
	2.6 Export-Import Bank of India or EXIM Bank
	2.7 Export Credit Guarantee Corporation of India
	2.8 International Chamber of Commerce
Chapter 3 Structured Products and Letter of Credit
	3.1 Structured Documentary Credit
	3.2 Back-to-Back Letter of Credit
	3.3 Transferable Letter of Credit
	3.4 Red-Clause Letter of Credit
	3.5 Green-clause Letter of Credit
	3.6 Revolving Letter of Credit
	3.7 Instalment Letter of Credit
	3.8 Transit Letter of Credit
	3.9 Standby Letter of Credit
Chapter 4 Documentary Discrepancies and Banking Operations: Case lets on URC 522 and UCP 600
	4.1 International Chamber of Commerce
	4.2 Documentary Collection and URC 522
	4.3 Letter of Credit Transaction
Chapter 5 Transport Documents and Other Commercial Documents: In International Trade
	5.1 Transport Document – Bill of Lading (BL)
	5.2 Types of Bill of Lading
	5.3 Waybill
	5.4 Caselet on Transport Documents
	5.5 Proforma Invoice
	5.6 Packing List
	5.7 Insurance Certificate
	5.8 Certificate of Origin
	5.9 Quality Certificate
Chapter 6 INCOTERMS: Division of Risk and Cost between Exporters and Importers
	6.1 International Commercial Terms – INCOTERMS
Chapter 7 Export Trade and Export Credit
	7.1 Export Trade – Basics
	7.2 Some Important Concepts Related to Different Types of Accounts
	7.3 Advance Payment against Export
	7.4 Consignment Exports
	7.5 Counter Trade Arrangement
	7.6 Export of Goods by Special Economic Zones (SEZs)
	7.7 Export of Services by Special Economic Zones (SEZs) to DTA Units
	7.8 Project Exports and Service Exports
	7.9 Export of Currency
	7.10 Switching from Barter Trade to Normal Trade at the Indo-Myanmar Border
	7.11 Counter Trade Arrangements with Romania
	7.12 Handing Over Negotiable Copy of Bill of Lading to Master of Vessel/Trade Representative
	7.13 Follow-up of Overdue Bills
	7.14 Change of Buyer/Consignee
	7.15 Shipments Lost in Transit
	7.16 “Netting off” of Export Receivables against Import Payments – Units in Special Economic Zones (SEZs)
	7.17 Financing Export Credit
	7.18 Quantum of Finance
	7.19 Pre-shipment Credit in Foreign Currency (PCFC)
	7.20 Who Are Eligible?
	7.21 Mode of Availability of PCFC
	7.22 Repayment of PCFCs
	7.23 Advance against Undrawn Balances on Export Bills
	7.24 Advance against Retention Money
	7.25 Exports on Consignment Basis
	7.26 Post-Shipment Advance against Duty Drawback Entitlement
	7.27 Post-Shipment Export Credit in Foreign Currency
	7.28 Inter-Bank Market for Rediscounting
	7.29 Gold Card Scheme for Exporters
Chapter 8 Import Financing through Trade Credit: Buyer’s Credit and Supplier’s Credit
	8.1 Trade Credit
	8.2 Trade Credit
	8.3 Guidelines on TC for Special Economic Zone/Free Trade Warehousing Zone/Domestic Tariff Area
	8.4 Guarantees
	8.5 Trade Credit for the Infrastructure Sector
	8.6 Buyer’s Credit
	8.7 Difference between a Letter of Comfort and a Letter of Undertaking
	8.8 Buyer’s Credit in Cross Currency
	8.9 Difference between Buyer’s Credit and Letter of Credit
	8.10 In Which Case Buyer’s Credit Is Not Allowed
	8.11 Type of Transaction Where Buyer’s Credit Can Be Availed for Limited Amount
	8.12 Availability of Buyer’s Credit for a Limited Tenure
	8.13 Supplier’s Credit
	8.14 Difference between Buyer’s Credit and Supplier’s Credit
	8.15 We Now Discuss Some Cases in This Section
Chapter 9 Merchanting Trade
	9.1 Merchanting Trade – Meaning
	9.2 Merchanting Trade – Documents and Payment Flow
	9.3 Parties to Merchanting Trade Transaction
	9.4 Merchanting Trade – Process
	9.5 Merchanting Trade – Caselets
Chapter 10 Treasury Front Office Operations for Forex Dealers
	10.1 Foreign Exchange Basics
	10.2 Forex Parlance
	10.3 ISO Standard and the SWIFT Messages
	10.4 Hierarchy of the Quote
	10.5 NOSTRO and VOSTRO Account
	10.6 Value Dates or Settlement Dates
	10.7 Merchant Deals in Spot and Cover Operation
	10.8 Forward Points or Swap Points
	10.9 Forex Swap
	10.10 The Fundamental Rules of Forex Swap
	10.11 Some Important Points about Forward Contract
	10.12 Swap Points for Broken dates
	10.13 FEDAI Rules for TT and Bill Buying and Selling Rate
Chapter 11 Types of Bank Guarantees and URDG 758
	11.1 Bank Guarantees and Its Role in International Trade
	11.2 Parties to the Guarantees
	11.3 Steps to Establish a Bank Guarantee or Demand Guarantee
	11.4 Types of Bank Guarantees
	11.5 Advantages of Bank Guarantee
	11.6 Difference between Standby Letter of Credit and Guarantees
Answer Key to Multiple Choice Questions