IMPORT LICENSING

Import licensing is an alternative to quota system. It is useful for restricting the total quantity to be imported. In this system, imports are allowed under license permission from the government. Importers have to approach the licensing authorities for permission to import certain commodities. Foreign exchanges for imports are provided against such license issued. Such licensing for imports exists in many countries. Import licensing may be used for controlling the quantity of imports.

FOREIGN EXCHANGE REGULATIONS

In addition to tariffs and quota many countries introduce foreign exchange regulations for restricting imports. Under exchange control, countries impose restrictions on the use of foreign exchange earned through exports. If exchange control is to be made effective, it must be fairly comprehensive and strict. Objective of exchange regulation /control: 1. To restrict the demand for foreign exchange and to use the available foreign exchange as per the requirements of the national economy. 2. To protect domestic industries 3. To check the flight of capital 4. To maintain over valued exchange rates 5. To follow independent monetary and fiscal policies. 6. To earn revenue in the form of difference between selling and purchasing rates of foreign exchange.

Clearing and Forwarding (C & F) Agent

Clearing and Forwarding agents are essential link in international trade. C & F agent plays a vital role in fulfilling the various delivery commitments made by the exporter to the importer abroad. C & F agent facilitate the smooth and trouble free passage of cargo from the point of manufacture to the destination. Activities of a C& F Agent 1. C & F agent works closely with the exporter right from the receipt of offer stage. He provides freight rates to various destinations and also informs the exporter about the most economical modes of transportation. He also advises the most cost effective routing advice for the destination. 2. Once the order is received by the exporter, C & F agent makes the ship booking keeping in mind the last date of shipment on the letter of credit. 3. As the dispatch dead line approaches, C & F agent estimates the transit time between the factory and the port of shipment as mentioned in the L/C. Accordingly he advises the exporter about the dispatch date from the factory, so that the cargo reaches the port right time. If the cargo reaches too early, it attracts demurrage charges. On the other hand, if the cargo reaches late, it may miss the ship, thereby causing the delay Such delays are inconvenient and expensive to both the importer as well as the exporter. 4. Once the goods are dispatched from the factory, the C & F agent intimates the shipping line regarding the expected arrival schedule of the goods at the port, along with the mode of inland transportation. He also completes the octroi formalities (wherever necessary) so that the export good are not subjected to octroi duty. 5. The C&F agent takes delivery of the consignment from the road transport company or the railway station. The cargo is stored in C&F agent warehouse till shipment. Soon after receiving the cargo, the C&F agent initiates action to obtain customs clearance and seek permission of port authorities for bringing the cargo to the shipment shed. 6. C & F agent then applies for and secures port permit so that the goods can enter the port premises. At the same time, the

C & F agent helps the exporter in preparing the export declaration form that the value specification quantity and description of goods mentionedin the shipping bill are in according with the export contract and the statement made in the shipping bill is true. 7. After this, the C & F agent prepares bill of lading in compliance with the terms and conditions of the sale/ letter of credit. 8. After this, the bill of lading is submitted to the shipping company and the cargo is loading on board the vessel. The shipping company representative examines the cargo for its condition and signs the bill of lading accordingly. In case of CFR and CIF contracts the ocean freight is also paid, at this stage and the Freight Prepaid seal is obtained on the bill of lading. C&F agent then collects all the documents such as bill of lading, customs certified invoice, consular invoice, certificate of origin etc from the respective authorities and sends them to the exporter for further negotiation