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Advance against Undrawn Balances : In some of the export business, it is the trade practice that the bills are not drawn for the full invoice value of the goods. A small part of the bills is left undrawn for payment after adjustments due to difference in weight quality, etc. Advances are granted against such undrawn balances. In this case the export proceeds must be realised within 90 days.
The advances are granted provided the undrawn balance is in conformity with the normal level of balances left undrawn subject to a maximum of 5% of the full export value. The exporters are supposed to give an undertaking that they will surrender the balance proceeds within 6 months from the date of shipment
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Distinction between Spot and Forward Rates : You have learnt what spot and forward rates are. Let us now explain the distinction between both rates. Spot rates are applicable on t
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Procedure for Claiming Duty Drawback : The claim of Duty Drawback (DBK) is processed and passed for payment, primarily on the basis of the relevant information given in the Drawba
Advance Intermediate Licence : An advance intermediate licence is granted to a manufacturer exporter for the import of inputs required in the manufacture of goods to be supplied
STATUTORY BASIS : Exchange control was introduced in India with the outbreak of second World War on September 3, 1939. This was done by virtual of the emergency powers derived u
NATURE OF EXPORT SALES CONTRACT: Contract is a legal concept. It has been defined in the Section 2(h) of the Indian Contract Act, the other party without any qualification. This p
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