International Trade Laws

Types of Marine Insurance Policies

Marine insurance is a contract by which the insurer, in consideration of payment by the insured of a specified premium determined under tariff rates or otherwise, agree to indemnify the latter against any loss incurred by him in respect of the merchandise exposed to the perils of the sea or to the particular perils insured against.

In a c.i.f. contract, marine insurance is obligatory, and the policy must be one which is usual in the trade and is in a negotiable form. The policy must be stamped  and bear a date not later than that of the bill of lading; and if the export is under a letter of credit, it must conform to the terms and conditions laid down in it.… Read the rest

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Pre-Shipment Inspection

Pre-shipment inspections (PSI) is defined as the certification of the value, quality, and/or identity of traded goods done in the exporting country by specialized agencies or firms on behalf of the importing country. Traditionally used as a means to prevent over-or under-invoicing, it is now being used as a security measure.

Pre-shipment inspections are required when mandated by the government of the importing country. Governments assert that pre-shipment inspections ensure that the price charged by the exporter reflects the true value of the goods, prevent substandard goods from entering their country, and mitigate attempts to avoid the payment of customs duties.… Read the rest

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Common Export Documents – Export Invoice

An export invoice is the basic document which gives full details of the contents of the shipment and serves as seller‘s bill of goods and sets out the terms of sale. An invoice  usually means a Commercial invoice. An exporter must prepare this document which will fully identify the overseas shipment and serve as a basis for the preparation of all other documents.

There is no standard form for an export invoice and it is the exporter’s choice to design his own form. The invoice is prepared for the buyer abroad. Any special requirement of the importer must be duly complied with.… Read the rest

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Trade Protectionism in International Business

Trade Protectionism is the economic policy of restraining trade between nations,  through methods such as high tariffs on imported goods, restrictive quotas, and  anti-dumping laws in an attempt to protect domestic industries in a particular  nation from foreign take-over or competition. This contrasts with free trade,  where no artificial barriers to entry are instituted.

Trade Protectionism has frequently been associated with economic theories such as  mercantilism, the belief that it is beneficial to maintain a positive trade balance,  and import substitution. There are two main variants of trade protectionism,  depending on whether the tariff is intended to be collected (traditional  protectionism) or not (modern protectionism).… Read the rest

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Foreign Exchange Restrictions

Although the direct intervention methods referred to have influenced many exchange rates, they do not fully serve the needs of countries with a continuous shortage of foreign exchange. To supplement the direct measures many countries adopted a number of foreign exchange restrictions. Most countries have employed foreign exchange restrictions from time to time. Developing countries especially have found restrictions necessary to secure compliance with their development plans.

An exchange restriction plan implies that the government restricts the uses to which the available supply of exchange shall be put. Foreign exchange may be allocated specially for the payment of import bills, interest on foreign loans, and on other specific purposes.… Read the rest

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Quality Standards For Exports

In almost all the products, for which the pre-shipment inspection scheme has been introduced, great care has been taken to accept the buyer’s requirements, wherever known, as the basis of inspection. In many cases, where the buyer’s requirements are known through-an approved sample of, for example, footwear or handicrafts, inspection is carried out on the basis of the approved sample. However, for items involving safety, such as cables and conductors, only the national standards, either Indian or those of the importing country, have been adopted. In the case of commodities involving health hazard, such as fish and fishery products, statutory laws as applicable in the importing country for these products, are adhered to.… Read the rest

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