Modes of Payment
There are four modes payments which are as follows:
• Deferred Credit
• Sight Credit
• Acceptance Credit
• Negotiation Credit
Deferred Credit
The draft is issued by the importer and presented to the bank by the exporter along with documents (bill of loading, invoice, and insurance). The payment is made by the bank on maturity of draft.
Sight Credit
The draft is issued by the importer and presented to the bank by the exporter along with documents (bill of loading, invoice, and insurance). The payment is made by the bank if it finds the documents correct.
Acceptance Credit
Bank confirmed that document have been received and payment would be made within certain time period.
Negotiation Credit
The issued L/C can discounted at any bank and got the amount money that he required against the L/C issued by the bank.
SHIPPING CLEARANCE
Import or export license is no more required for clearance at customs. Only requirement is to have registration EPB as importer or exporter. The imported or exported goods must confirm to the trade policy. The goods have been categorized as:
Negative List
Goods not permitted to be exported or imported e.g. old machinery, old tires, export of antiques, obscene and sectarian literature, etc.
Prohibited/ Restricted Goods
These items can be imported or exported but subject to certain conditions e.g. boilers, medicines, animals, seeds, arms and ammunition of certain bores.
Procedures
The import and export business is not also a profitable business but also, it helps in improving country’s economic condition. To improve our country’s balance of payments we must concentrate upon increasing exports. Though the specific procedures might differ from product to product, the major steps follow the same line. The knowledge of such like process would be useful for an MCB in the practical field.
