Q.12:- Discuss the process involved in securing payment for exports.
The process involved in securing payment for exports includes the following steps
(i) After the shipment of goods, the exporter informs the importer about the shipment of goods.
(ii) The exporter sends the documents like certified copy of invoice, bill of lading, packing list, etc. needed by the importer to claim the title of goods on their arrival at his/her country and getting them customs cleared. These documents are sent through exporter’s banker with the instruction that these may be delivered to the importer after acceptance of the bill of exchange.
(iii) On receiving the bill of exchange, the importer releases the payment in case of sight draft or accepts the usance draft for making payment on maturity of the bill of exchange.
(iv) The exporter’s bank receives the payment through the importer’s bank and is credited to the exporter’s account.
(v) The exporter can get immediate payment from his/ her bank on the submission of documents by signing a letter of indemnity.
(vi) After receiving the payment for exports, the exporter needs to get a bank certificate of payment which states that the necessary documents relating to the particular export consignment have been presented to the importer for payment and the payment has been received in accordance with the exchange control regulations.