In an international trade transaction, there is a time lag between the transfer of goods by the exporter to the importer, and transfer of payment by the importer to exporter. To protect both parties from counter-party risk, a number of documents are created and used. These are listed below: 1. Bill of Exchange 2. Bill of Lading 3. Letter of [...]
In this article we will discuss about the mechanism of financial assistance for promoting exports. Exporters may avail pre-shipment credit, post-shipment credit, term loans, suppliers' credit and buyers' credit. 1. Pre-Shipment Credit: Also known as packing credit, it is a loan given by a financial institution (either a commercial bank, or an Exim bank) to the exporter before shipment of [...]
In this article we will discuss about:- 1. Meaning of Transfer Pricing 2. Transfer Pricing in India 3. Transfer Pricing Methods 4. Case Study on Tarragon Chemicals and Transfer Pricing. Meaning of Transfer Pricing: Transfer price is the price at which two related parties undertake a commercial transaction between each other. The related parties are called associated enterprises. So, transfer [...]