Dave Bisney

The Applicant (Buyer) may apply for a Shipping Guarantee (SG) issued in favour of the shipping company. This is to facilitate clearance of cargo from the port and to avoid paying demurrage charges when the vessel is arriving before the receipt of shipping documents called for under LC. This SG will subsequently be redeemed by the Applicant when original BLs are presented under LC. Shipping Guarantees are formal financial obligations or undertakings in favour of third parties, issued by banks on behalf of customers, to facilitate their business dealings.

You are required to furnish a cancellation consent letter together with the Original LC and LC amendments (if any) for cancellation of the LC. The letter must bear the signatures of the Company Signatories and Company stamp.

Small-business manufacturing firms use the schedule of goods manufactured to track the costs incurred in production. A schedule of goods manufactured breaks down the costs of the raw materials, labor and factory overhead. It is organized in four separate sections: direct materials, direct labor, manufacturing overhead and work-in-process. You can use the schedule of goods manufactured to spot unusual cost variations and determine where you can trim costs without affecting product quality.

The cost of shipping varies on a case by case basis. Usually, the freight element of the shipping or handling at local port or airport will contribute heavily to your overall charges. Charges will always be dependent on the size of your consignment, weight and volume. You should always request a cost from your forwarder before shipping so you are aware of your outlay. You should also be aware of charges that may not have been included in your quotation as they are unforeseen.

Fiscal deficit is a wider term than the revenue deficit. Revenue Deficit = Revenue expenditure - Revenue' receipts. On the other hand, Fiscal Deficit = Revenue deficit + (Capital expenditure - Non-debt capital receipts). So, revenue deficit forms part of fiscal deficit.