Professional Documents
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International Trade Finance (IIBF) - 4729contents
International Trade Finance (IIBF) - 4729contents
International Trade Finance (IIBF) - 4729contents
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Foreword iii
Recommended reading v
Syllabus vii
Chapter-heads ix
SECTION 1
MACRO PERSPECTIVE
CHAPTER 1.1
THEORIES OF INTERNATIONAL TRADE
u International trade 3
u International trade theory 3
u Conclusion - Limits of international trade theory 6
CHAPTER 1.2
INTERNATIONAL TRADE POLICY FRAMEWORK
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CHAPTER 1.3
INTERNATIONAL CHAMBER OF COMMERCE
CHAPTER 2.2
MODES OF INTERNATIONAL TRADE
u Clean payments 33
u Bills for collection 34
u Documentary credit 34
CHAPTER 2.3
CLEAN PAYMENT TRANSACTIONS
u Introduction 36
u How it works 36
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CHAPTER 2.4
DOCUMENTARY COLLECTIONS
u Introduction 39
u How it works 39
u Role of various parties 40
CHAPTER 2.5
DOCUMENTARY CREDIT
u Introduction 47
u Parties to letters of credit 48
u Inter-bank communication 49
u Fees and reimbursements 59
u Risks associated with opening import LCS 60
u Isbp 65
u Fedai guidelines 66
CHAPTER 2.6
IMPORTANT TRADE DOCUMENTS
u Documents 68
u Air waybill 69
u Bill of lading (B/L) 69
u Certificate of origin 71
u Combined transport document 72
u Commercial invoice 72
u Draft (or bill of exchange) 73
u Packing list/specification 75
u Section 2 - Self-review 76
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SECTION 3
TRADE FINANCE
CHAPTER 3.1
IMPORTANCE OF TRADE FINANCE
CHAPTER 3.2
PRE-SHIPMENT TRADE FINANCE
CHAPTER 3.3
POST-SHIPMENT TRADE FINANCE
u Features 93
u Financing for various types of exports 95
u Types of post-shipment finance 96
u Crystallization of overdue export bills 98
u Options for the exporter 99
CHAPTER 3.4
FORFAITING AND FACTORING
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u Documentary requirement 104
u Fee type description 105
u Factoring 106
u Fee type description 110
u Bill discounting vs. factoring 110
CHAPTER 3.5
BANK GUARANTEES
CHAPTER 3.6
DOMESTIC TRADE FINANCE
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SECTION 4
RISK MANAGEMENT
CHAPTER 4.1
RISK ELEMENTS 131
CHAPTER 4.2
TRANSPORT RISK
CHAPTER 4.3
CONTRACT AND CREDIT RISK
CHAPTER 4.4
COUNTRY AND POLITICAL RISK
CHAPTER 4.5
CURRENCY RISK
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u Forward rate vs. spot rate 148
u RBI reference rate 148
u Inter-bank rate 148
u T.T. rate 149
u TC rates 149
u Buying and selling 151
u Speculation 156
u Calculating the forward rate 156
CHAPTER 4.6
WHEN THINGS GO WRONG
CHAPTER 4.7
MARITIME FRAUDS
u Introduction 164
u Definition of maritime fraud 165
u Different types of maritime fraud 165
u Modus operandi 167
u Preventive measures 168
u Conclusion 173
u Terminal questions 174
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SECTION 5
REGULATORY FRAMEWORK
CHAPTER 5.1
REGULATORY FRAMEWORK
CHAPTER 5.2
DGFT REGULATIONS
CHAPTER 5.3
FOREIGN TRADE POLICY (Exim policy)
CHAPTER 5.4
FOREIGN EXCHANGE Management act
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CHAPTER 5.5
ICC - UCPDC GUIDELINES 209
CHAPTER 5.6
FEDAI GUIDELINES
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l Working capital finance (for non-exporting companies) 227
l Term finance (for non-exporting companies) 227
l Export finance 227
l Equity participation (in Indian exporting companies) 228
l Technology and Innovation Enhancement and Infrastructure 228
Development (tieid) for msme sector
u Overseas investment finance 228
u Confirmation of letters of credit (l/c) by exim bank under the 228
Global Trade Finance Program (GTFP) of the International Fi-
nance Corporation (IFC), Washington dc
l Introduction 228
l Features of the program 229
l How it works 229
u Export services 230
u Lines of credit 230
l Procedural flow chart 231
l Eligible goods 232
l General 232
CHAPTER 6.2
EXPORT CREDIT GUARANTEE Corporation of India
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Appendix 1
Important trade terms 237
Appendix 2
Deemed exports 242
Appendix 3
Exim bank’s operative lines of credit 245
Appendix 4
Exim bank’s pipeline locs 267
269
Trade finance test
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