Leon Lacroix

In a shipping contract, an LOI insurance acts as an added layer of protection. The letter offers protection from any liability when a party has to step out of bounds of its agreed obligations. This happens under the following instances:

• When goods have to be delivered to a different destination than the port mentioned on the Bill of Lading (BOL)
• When the document has flaws
• When split BOLs are used

Factoring refers to a type of financing where a financier purchases a debt or payable invoice from a business or seller. The financier, called a factor, buys the accounts receivable at a discounted rate. The buyer then pays the invoice amount directly to the financier responsible for collecting the invoice value.

Factoring allows small businesses access to funds for regular use, growth, and diversification. It is a simple way for exporters to free up funds stuck in the supply chain and accelerate cash flow. Moreover, since businesses sell the accounts receivable to the financier, they also transfer the debt, guaranteeing payment.

Price standardization is price strategy for international markets based on setting a price for the product as it leaves de factory. At its simplest it involves setting a fixed world price at the headquarters of the firm. This fixed world price is then applied in all markets after taking account of factors such as foreign exchanges rates and variance in the regularity context.

This pricing strategy might be appropriate if the firm sells to very large customers, who have companies in several countries. In such a situation the firm might be under pressure from the customer only to deliver at the same price to every country subsidiary, throughout the customer´'s multinational organization.

Indian foreign trade legislation is primarily controlled by Foreign Trade (Development and Regulation) Act 1992. Through this policy tool government of India strives to permit imports into Indian shores and similarly encourage exports from Indian Shores.

Obtaining IEC from Director General of Foreign Trade (DGFT) is mandatory for companies and organizations aspiring to enter into export and import. You will be allotted a Business Identification Number – BIN, which is based on PAN issued by IT authorities.