Download - Brief on Basics of International Trade
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Brief on basics of Brief on basics of International International
Trade Trade
By Kamal SinghviBy Kamal Singhvi
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What is Trade & essentials What is Trade & essentials for executionfor execution
• Sale and Purchase of ‘Goods & Services’ Sale and Purchase of ‘Goods & Services’ for considerationfor consideration
• Mode of deliveriesMode of deliveries• Mode of Payments Mode of Payments • Abide by international rules & regulationsAbide by international rules & regulations• DocumentationDocumentation• Geographical and Political influence on Geographical and Political influence on
tradetrade• Settlement of DisputesSettlement of Disputes• Insurance and IndemnitiesInsurance and Indemnities
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Mode of DeliveriesMode of Deliveries
• Road TransportRoad Transport• Rail TransportRail Transport• Sea TransportSea Transport• Air TransportAir Transport• Wireless Services through Satellite Wireless Services through Satellite
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Mode of PaymentsMode of Payments
• TT RemittancesTT Remittances• Cash PaymentsCash Payments• Letter of Credit ( of Various types)Letter of Credit ( of Various types)• Barter exchangeBarter exchange
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International Rules & International Rules & RegulationsRegulations
• WTO agreements and enforcementWTO agreements and enforcement• Insurance & IndemnitiesInsurance & Indemnities• Restrictive trade practices Restrictive trade practices
(Antidumping and anti-subsidy (Antidumping and anti-subsidy enforcement against particular enforcement against particular countries for particular products)countries for particular products)
• Canal transits and exorbitant duesCanal transits and exorbitant dues• Geographical & Political restrictions Geographical & Political restrictions
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DocumentationsDocumentations
• Backup documentation of Backup documentation of negotiationsnegotiations
• Sale Purchase ContractSale Purchase Contract• Mates ReceiptMates Receipt• Bills of LadingBills of Lading• Charter PartyCharter Party• Letter of CreditLetter of Credit• Insurance contractInsurance contract
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Geographical & Political Geographical & Political influence on tradeinfluence on trade
• Gulf Countries Vs IsraelGulf Countries Vs Israel• Somalia and Iraq ( War prone Zone)Somalia and Iraq ( War prone Zone)• Libya and Cuba ( anti American wave)Libya and Cuba ( anti American wave)• North Korea and JapanNorth Korea and Japan• Scandinavian countries for their strict Scandinavian countries for their strict
Labour union regulations etc…Labour union regulations etc…• Political tie up and control on major Political tie up and control on major
sea routes ( Suez Canal by Egypt)sea routes ( Suez Canal by Egypt)
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Settlements & DisputesSettlements & Disputes
• International Arbitration lawsInternational Arbitration laws• Applicable laws and place of dispute Applicable laws and place of dispute
settlement agreed in the contractsettlement agreed in the contract• The cost of arbitration to be born by The cost of arbitration to be born by
whomwhom• Insurance settlements ( particularly Insurance settlements ( particularly
General Average)General Average)• Enforcement of WTO rules to provide Enforcement of WTO rules to provide
the uniform ground for settlementthe uniform ground for settlement
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Insurance & IndemnitiesInsurance & Indemnities
• Protection & Indemnity InsuranceProtection & Indemnity Insurance• Hull InsuranceHull Insurance• Cargo InsuranceCargo Insurance• Cash in transit insurance Cash in transit insurance • Off Hire Insurance for Time Off Hire Insurance for Time
Chartered VesselsChartered Vessels
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Essentials of Voyage C/PEssentials of Voyage C/P• Cargo Cargo
description/quantitydescription/quantity• Loading placesLoading places• Loading orders/ RotationsLoading orders/ Rotations• Discharging placesDischarging places• Lay days and cancelingLay days and canceling• FreightFreight• Cost of Loading Cost of Loading
/Discharging/Discharging• Notice of readiness /time Notice of readiness /time
countscounts• Loading/ Discharging Loading/ Discharging
RatesRates
• Exempted periodExempted period• Demurrage / DispatchDemurrage / Dispatch• NoticesNotices• Ships GearShips Gear• Grab Discharge / Grab Discharge /
StevedoreStevedore• OvertimeOvertime• Shifting / Seaworthy Shifting / Seaworthy
trimtrim• Cargo Separation & Cargo Separation &
TallyingTallying• Dues & TaxesDues & Taxes• Ports & AgentsPorts & Agents
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Essentials of Voyage C/PEssentials of Voyage C/P• Bills of LadingBills of Lading• LighteningLightening• General AverageGeneral Average• StrikesStrikes• ExceptionsExceptions• CommissionsCommissions• Protection ClausesProtection Clauses• LienLien• IceIce• SignatureSignature
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Essentials of Time C/pEssentials of Time C/p• Vessel DescriptionVessel Description• Duration of periodDuration of period• Trading Intentions/ Trading Intentions/
LimitsLimits• Cargo Intentions/ Cargo Intentions/
ExclusionsExclusions• Vessel ConditionVessel Condition• Owners ResponsibilitiesOwners Responsibilities• Chatterer's Chatterer's
ResponsibilitiesResponsibilities• Delivery of Vessel and Delivery of Vessel and
redeliveryredelivery• BunkersBunkers• HireHire
• Off hiresOff hires• Vessel PerformanceVessel Performance• Vessel MaintenanceVessel Maintenance• LogbooksLogbooks• SupercargoSupercargo• PollutionPollution• SalvageSalvage• Laying upLaying up• ArbitrationArbitration• LienLien• AssignmentAssignment• ExceptionException
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Essentials of Time C/pEssentials of Time C/p
• RequisitioningRequisitioning• Bills of LadingBills of Lading• Stevedoring DamageStevedoring Damage• CommissionsCommissions• Protective ClausesProtective Clauses• Cargo ClaimsCargo Claims• Masters/ OfficersMasters/ Officers• SignaturesSignatures
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Bills of Lading Bills of Lading
• The Bills of Lading as evidence of The Bills of Lading as evidence of ContractContract
• The Bills of Lading as document of The Bills of Lading as document of titletitle
• The Bills of Lading as a receipt for The Bills of Lading as a receipt for the cargo ( title to the cargo)the cargo ( title to the cargo)
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Essentials of Bills of Essentials of Bills of Lading Lading
• Quantity of CargoQuantity of Cargo• Accurate cargo description & Accurate cargo description &
ConditionsConditions• Date of Bill of LadingDate of Bill of Lading• Name of Shipper & ConsigneeName of Shipper & Consignee• Ports of Loading and dischargingPorts of Loading and discharging• Ships nameShips name• Terms & conditions of tariffTerms & conditions of tariff• Payment of freightPayment of freight
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Essentials of a firm offer for Essentials of a firm offer for Voyage businessVoyage business
• Reply by: ( Place & time Limit)Reply by: ( Place & time Limit)• For the account of: Name & Background of For the account of: Name & Background of
ChartersCharters• Name of Vessel: ( Including descriptions eg. Flag, Name of Vessel: ( Including descriptions eg. Flag,
year of built, LOA, Beam, DWT, Draft, Cubic year of built, LOA, Beam, DWT, Draft, Cubic Capacity, Single /twin numbers of Holds, Gear)Capacity, Single /twin numbers of Holds, Gear)
• Position & estimated readiness of VesselPosition & estimated readiness of Vessel• Cargo Description & Quantity( More or less)Cargo Description & Quantity( More or less)• Load Port / Berth ( Always Afloat but safely a Load Port / Berth ( Always Afloat but safely a
groundground• Discharge Ports / Berth ( Always Afloat)Discharge Ports / Berth ( Always Afloat)• Lay days /CancelingLay days /Canceling
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Essentials of a firm offer for Essentials of a firm offer for Voyage businessVoyage business
• Loading Rate ( per WW Day/SHINC/SHEX)Loading Rate ( per WW Day/SHINC/SHEX)• Discharge Rate ( per WW Day/SHINC/SHEX)Discharge Rate ( per WW Day/SHINC/SHEX)• Freight rate ( Where , When & How Paid)Freight rate ( Where , When & How Paid)• Demurrage rate ( Half Dispatch)Demurrage rate ( Half Dispatch)• Loading Discharging Cost (FIO ?) Cargo to be Loading Discharging Cost (FIO ?) Cargo to be
loaded or discharged to be free of expense to the loaded or discharged to be free of expense to the carriercarrier
• Address CommissionAddress Commission• BrokerageBrokerage• Charter party formCharter party form• Subject: ( details / stem/ Shippers’ – receivers Subject: ( details / stem/ Shippers’ – receivers
ApprovalsApprovals
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Essentials of a firm offer for Essentials of a firm offer for T/C businessT/C business
• Reply by: ( Place & time Limit)Reply by: ( Place & time Limit)• For the account of: Name & Background of For the account of: Name & Background of
ChaterersChaterers• Name of Vessel: ( Including descriptions eg. Name of Vessel: ( Including descriptions eg.
Flag, year of built, LOA, Beam, DWT, Draft, Flag, year of built, LOA, Beam, DWT, Draft, Cubic Capacity, Single /twin numbers of Cubic Capacity, Single /twin numbers of Holds, gear, Speed & Consumption of Fuel)Holds, gear, Speed & Consumption of Fuel)
• Position & estimated readiness of VesselPosition & estimated readiness of Vessel• Redelivery ( When Where ready, dropping Redelivery ( When Where ready, dropping
outward pilotsoutward pilots• Lay days CancelingLay days Canceling• Duration of tripDuration of trip
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Essentials of a firm offer for Essentials of a firm offer for T/C businessT/C business
• Delivery ( When, where ready, passingDelivery ( When, where ready, passing• Trading Areas ( ex. World wide, Atlantic Basin Trading Areas ( ex. World wide, Atlantic Basin
etc…etc…• Intended trade Ex. Grain trading, Coal tradingIntended trade Ex. Grain trading, Coal trading• Cargo exclusionsCargo exclusions• Hire rate ( Daily per/ dead weight tonnage per Hire rate ( Daily per/ dead weight tonnage per
month)month)• Ballast Bonus ( gross or net)Ballast Bonus ( gross or net)• BunkersBunkers• Address CommissionAddress Commission• BrokerageBrokerage
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Essentials of Letter of Essentials of Letter of CreditsCredits
• Incorporate all the essential Incorporate all the essential conditions of Sale Purchase Contractconditions of Sale Purchase Contract
• Amounts in Currency and the Amounts in Currency and the method of Paymentsmethod of Payments
• Validity of the Letter of CreditValidity of the Letter of Credit• Revocable or irrevocable Letter of Revocable or irrevocable Letter of
CreditCredit
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Important Rules & Important Rules & ClausesClauses
• Hague Rule of 1924Hague Rule of 1924• Hague Visbey Rule of 1974Hague Visbey Rule of 1974• Hamburg Rule 1994Hamburg Rule 1994• General Avg. ClauseGeneral Avg. Clause• Paramount ClauseParamount Clause
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Thanks for your timeThanks for your time