Common discrepancies in L/C and their solutions at a glance

What are the common discrepancies in letters of credit?

Some of the most common documentary discrepancies are found in the following fields under a letter of credit transaction:

Related to the documents in general

  • Documents inconsistent with each other. That means inconsistency of information between documents.
  • Original documents not marked “original”.
  • Absence of signature where required, on documents presented
  • Late presentation–documents presented more than 21 days after shipment or as specified in the LETTER OF CREDIT

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Procedures to open a Letter of Credit

A business deal between a Seller (Exporter) and a Buyer (Importer) for an international commodity transaction needs to be established prior to open a letter of credit. For export or sale of any particular commodity to a foreign buyer, it is the primary duty of a Seller to find out a suitable overseas buyer who is willing to purchase his brand of commodity. Then the Seller starts and continues negotiation with the chosen buyer till a Contract is finalized.

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China’s slow pace of growth threatens world economy

50th Post_Great achievement

50th Post_Great achievement

The slow pace of growth in China poses a great challenge to the world economy.

The rate of growth of Chinese economy reached at the lowest level compared to its growth during the last twenty five years. The growth rate of total Gross Domestic Product (GDP) of this world’s second largest economy has come down to below 7 per cent. In 2015 the country has achieved a GDP growth of 6.9 per cent only against officially fixed target of 7 per cent. Whereas the GDP growth of China was 7.3 per cent in the previous year i.e. in 2014.

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Details of Shipping Container Lease Agreements

Why do shipping lines lease containers?

The leading container shipping lines have their global network of services connecting the major trade routes. They have sizeable fleet of containers of their own to meet their global business requirements. Nevertheless it is neither operationally acceptable nor cost effective to maintain 100 per cent own containers to do business by the shipping lines. In order to ensure flexibility and quickest access to container units in the desired location at the right time as per demand, many Shipping lines prefer to keep a blend of owned and leased container available to them.

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International Maritime Organization(IMO) – a specialized agency for safety in shipping & sea

Introduction to IMO

IMO – the International Maritime Organization – is the United Nations specialized regulatory agency with responsibility for ensuring safety and security of shipping and prevention of marine pollution by ships at sea.

As a specialized regulatory agency of the United Nations, IMO is entrusted with the task of setting global standard for the safety, security and maintenance of pollution free environment at sea which is conducive to the growth of shipping in the international trade. . Its main role is to create a regulatory framework for the shipping industry that is workable, effective and universally adopted and implemented by all stakeholders.

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Define Maritime Law and highlights the area / subjects dealt by the law.

Define the concept of “Maritime Law”

The concept of “Maritime Law” has been defined by some group of authors as the body of law which provides legal framework for maritime transportation. This is a very conservative and narrow view of the concept. Another group holds the view that maritime law refers to the entire body of laws, rules, legal concepts, and processes that relate to the use of marine resources, ocean commerce and navigation. This is a broader view of the concept which is close to the modern interpretation of the maritime law. However it is generally accepted that the maritime law is a body of laws adopted purposely to control all relevant fields which come under the per view of “maritime activities”.

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Container shipping lines recourse to greater scale & mergers during 2015

Container shipping lines recourse to greater scale & mergers during 2015 to safeguard their growth

Shipping industry observed with curiosity that the trend of procuring gigantic container ships by leading shipping companies has been continued throughout the year 2015 like the scenario of last few years. It seems that the pioneer container shipping lines like Maersk Line, CMA CGM Line, MSC line have taken recourse to such ambitious procurement progamme not only to safeguard their global market share but also to marginalize the role of close competitors.

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Role of a Freight Forwarder in the Export & Import shipment

What is the role of a Freight forwarder in the export and import shipment?

Export and Import shipment in the international trade necessitate involvement of following parties and institutions.

  • Importers
  • Exporters
  • Shipping line & their Agents
  • Customs Authority
  • Port Authority
  • Freight Forwarders
  • Stevedores or Cargo handling agents
  • C&F Agent

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