Articles under For Beginners

What is Software Technology Park (STP) Scheme?

Explain Software Technology Park (STP) Scheme.   The Software Technology Park (STP) Scheme is developed to promote 100% export of Software and IT services, including export of professional services using communication links or physical media. Software Technology Parks acts as a single window in providing services to the software exporters and incubation infrastructure to SMEs. This scheme is unique in its nature as it concentrates on one product or sector, i.e. computer soft

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Payment terms in Export and Import

Different Methods of Payments in International Trade   International trade is an unavoidable part of each country’s economy. The development of Information and Communication Technologies (ICT) has resulted in converting the whole World into a Global Village, where the distance is not a barrier for trading. Inorder to conquer global market and get sales against foreign competitors, the exporters are required to offer attractive and convenient sales terms supported by apt

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Define Documents against acceptance (D/A).

Documents against Acceptance (D/A)   Documents against Acceptance are another term of payment in international payment. The Documents against Acceptance (D/A), depend on an instrument broadly used in international trade called a bill of exchange or draft. Under this, transaction utilizes a time draft or Usance (It is the allowable timeframe, allowed by custom, between the date of the bill and its payment) i.e, the Exporter allows credit to Importer. The importer is required

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Documents against Payments - D.A.P or D/P

What do you mean by Documents against Payments in International Trade?   Documents against Payment – DP/DAP is a term of payment in international trade. It relies on an instrument generally used in international trade called a bill of exchange or draft. In this term, the documents under consignment are delivered to buyer/importer only after collecting payment of goods by buyer’s bank. The exporter ships the goods and submits Shipping documents to importers Bank wit

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What is a Letter of credit in International Trade?

Letter of credit (LC) Letter of credit is a type of payment term opted by importers and exporters. Letters of credit (LCs) are one of the most secure instruments accessible to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as confirmed through the presentation of all required documents. In other words, we can explain that a Letter of Credit is

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