Q. We opened a letter of credit score rating through our monetary establishment. The remaining date for presenting it has expired. The beneficiary has no longer a professional us regarding the shipment and is not answering our queries. Our monetary establishment is reminding us to close the expired LC. Our non-fund-based LC facility is also blocked. Are all bindings under LC robotically terminated as quickly because the LC expires?
Your monetary establishment is not under any criminal accountability to pay towards bureaucracy no longer presented in conformity with the words and necessities of the LC right through the validity of the LC. But they is also fearful that the beneficiary can have presented the bureaucracy under LC to the negotiating monetary establishment right through the validity duration of LC, and thereafter the report can have been out of place in transit. In a freely negotiable LC any monetary establishment can negotiate the bureaucracy. I consider that is the reason they are asking you to determine the ideas.
Q. Against some orders for capital pieces, we give part-advances to world manufacturers. Invariably, they use the cost vary to make the capital pieces ordered. In such cases, do we get a lien or right kind over such pieces? If so, how can we enroll the lien or rate over the goods? In case any untoward event leads to destruction of that unfinished artwork previous to shipment, do we wish to go through the loss? If so, can we take insurance plans for it?
Payment of advance does no longer create any lien over the supplier’s property. Your rights rise up most efficient from the contract between you and the supplier. In case of any hurt to the unfinished artwork at the supplier’s end, you have no criminal accountability or tasks and so, you want no longer take insurance plans for that. You can hang the supplier accountable for shipment of system consistent with the contract, without reference to any untoward incidents at this end.
Q. Is it essential to ask a world exporter to assert in his invoice that this import into India is as in line with FTP 2015-20, as extended thru 365 days, and the article is freely importable or restricted (topic to DGFT’s permission)?
No. The world birthday party is not expected to grab the details of our FTP.
Q. Under EPCG scheme, can we make a decision to pay the IGST at the time of import and take credit score rating of the an identical?
As in line with Para 5.01 (d) of FTP, in case Integrated Tax and Compensation Cess are paid in cash on imports under EPCG, incidence of the mentioned Integrated Tax and Compensation Cess would no longer be taken for computation of web duty saved, supplied Input Tax Credit is not availed. So, easy methods to pay IGST is there, however when you find yourself taking Credit of it, your export criminal accountability will have to be calculated as though you availed exemption of IGST. If, on the other hand, you do not take Credit of IGST paid, you want no longer depend it as duty saved for calculating export criminal accountability.
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