Import And Export - The Complete Business Guide > Exim Payments

Format of L/C Draft

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Under LC, there are four key steps to the process:

  • The LC is issued.
  • Ship the products.
  • Delivering the documents to the confirming bank.
  • Receive payment from the importer and take custody of the items.

A Letter of Credit (LC) is a document that guarantees payment to the seller by the buyer. It is given by a bank and ensures that the seller is paid on time and in full. If the buyer is unable to make such a payment, the bank pays the entire or remaining balance on the buyer's behalf. 

An LC contract is a request by a customer to have a letter of credit issued, advised, or confirmed for a trade transaction. An LC substitutes the name and credit of a bank for the names and credit of the people concerned. Even if the remitter fails to pay, the bank promises to compensate the seller/beneficiary.

  • Main types of LC
  • Irrevocable LC. This LC cannot be canceled or modified without the consent of the beneficiary
  • (Seller).
  • Revocable LC.
  • Stand-by LC.
  • Confirmed LC.
  • Unconfirmed LC.
  • Transferable LC. .
  • Back-to-Back LC.
  • Payment at Sight LC.

You can open a Letter of Credit with your bank. The bank's responsible official assists you in completing the essential application for an LC. Because the LC is opened on the basis of your purchase contract, a copy purchase order / export contract, as well as other needed papers, must be produced.

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Jay Vyas
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This is just awesome course. I gained so much knowledge about Import-Export Business by learning this course. LearnVern, you are doing an awesome job by teaching for free.

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Mohammad Altaf
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I wants to write lots of things for appreciate but firstly I need to confirm one doubt. But it's very useful.

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Dinesh Kumar
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यह कोर्स मेरे लिए उतना ही प्रभावशाली और जरूरी है जैसे एक इंसान को सांस की जरूरत होती है

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Limbasiya Dax
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Very good 👍🏻😊

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Harshvardhan Maharnur
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nice

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Dinesh Kumar
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Ramesh Solanki
5

Awesome, I want to know about exim word during questionaire what it indicates ?

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Md Sabbir Hasan
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very Good

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Vinod Kumar
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V
Vinod Kumar
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Logistic best course

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Course Content

  1. Introduction to the Import-Export Business
    3m 32s

  1. Understanding Business
    4m 21s
  2. Domestic Business V/S International Business
    7m 34s
  3. Basics of Import-Export Business
    5m 55s
  4. Steps of Exporting & Importing
    29m 25s
  5. Export Business V/S Import Business
    12m 41s
  6. Abbreviation - Introductory Terms
    3m 14s
  7. Assignment : Understanding Import-Export Business
    1m 1s

  1. Why one Should do Exim Business?
    5m 26s
  2. Company Setup and IEC Code
    8m 5s
  3. HS Code ,Product Classification & Product Type
    12m 40s
  4. Market Research for Honey
    11m 14s
  5. Market Research for Imitation Jewellery
    8m 12s
  6. Market Research for Toy Car and Government Data
    8m 4s
  7. Market Research for Turmeric
    5m 21s
  8. Free Trade Agreement & Product Selection
    12m 8s
  9. Product Unique Selling Proposition and International Pricing
    11m 55s
  10. Export Market Selection
    8m 36s
  11. 5 P's of Marketing & Product Launching
    9m 59s
  12. Market Research for Hand Bags
    7m 37s
  13. Financing and International Payment Terms
    7m 49s
  14. Abbreviation - Introductory Terms
    1m 38s
  15. Assignment : Start an Import-Export Business
    2m

  1. Introduction to Harmonized System of Nomenclature (HSN)
    9m 15s
  2. Understanding HSN Code
    7m 42s
  3. Usage and Application of HSN Code
    6m 26s
  4. Modes of Transport for Export and Import
    4m 52s
  5. Types of Export Packaging
    6m 23s
  6. Importance of Labelling Details of Packaging
    9m 57s
  7. Abbreviation - Introductory Terms
    1m 35s
  8. Assignment : HSN – Introduction & Reading
    2m 25s

  1. Introduction to INCOTERMS - 2020
    6m 30s
  2. Importance of INCOTERMS
    5m 17s
  3. INCOTERMS Groups
    6m 21s
  4. Group C INCOTERMS
    5m 43s
  5. Group D INCOTERMS
    5m 12s
  6. Group E INCOTERMS
    2m 14s
  7. Group F INCOTERMS
    5m 16s
  8. INCOTERMS Risk and Responsibilities
    8m 21s
  9. Practical Application of INCOTERMS
    11m 25s
  10. Assignment : INCOTERMS – 2020
    1m 59s

  1. Company Registration for Import
    5m 16s
  2. Product Selection for Import
    12m 15s
  3. Assessable Value for Calculation of Import Customs Duty
    11m 56s
  4. Verify Supplier Before Import
    5m 17s
  5. Product Negotiation and Samples
    8m 17s
  6. Bank Contract and Letter of Credit
    6m 33s
  7. Inspection and Payments
    4m 55s
  8. Custom Clearance and Documentation
    9m 29s
  9. Bill of Entry
    5m 16s
  10. Merchant Trading in Import
    4m 55s
  11. Abbreviation - Introductory Terms
    2m 25s
  12. Assignment: Import Procedure and Documentation
    1m 30s

  1. Company Registration for Export
    3m 42s
  2. Product Selection for Export
    13m 51s
  3. HS Code Finder for Export
    5m 39s
  4. Quotation for Export with Sample and Catalogues
    15m 22s
  5. Product Packing and Material Safety Data Sheet (MSDS) of Product
    5m 41s
  6. Export Promotion Councils
    4m 53s
  7. Buyer Background Check
    9m 56s
  8. Documents for Export
    14m 5s
  9. Bank Contract and EPCG Scheme
    5m 3s
  10. Custom Clearance Procedure and Bill of Lading in Export
    8m 21s
  11. Abbreviation - Introductory Terms
    1m 20s
  12. Assignment : Export Procedure and Documentation
    1m 16s

  1. Roles and Responsibilities of IATA
    15m 12s
  2. Air Freight Products
    3m 15s
  3. Air Waybill (AWB)
    5m 11s
  4. Freight Calculation
    12m 33s
  5. Unit Load Device (ULD) Rates and Pivot Rates
    10m 34s
  6. Liabilities of Airlines
    9m 20s
  7. Role of Freight Forwarders in Air Shipment Export
    8m 4s
  8. Role of Freight Forwarders in Air Shipment Import
    5m 15s
  9. Assignment : Shipping & Forwarding – Air Cargo
    2m 7s

  1. Types of Ships
    5m
  2. Shipping Line
    5m 22s
  3. Types of Shipping Containers
    7m
  4. Full Container Load (FCL) and Less Container Load (LCL)
    6m 26s
  5. CBM Calculation
    7m 7s
  6. Elements of Shipping Freight
    8m 19s
  7. Role of Freight Forwarders in Sea Shipment
    8m 55s
  8. Bill of Lading
    8m 53s
  9. Assignment : Shipping & Forwarding – Sea Cargo
    1m 41s

  1. Importance of Road Transport
    8m 28s
  2. Road Transport Depot
    4m 10s
  3. Types of Road Cargo Carriers & Road Infrastructure
    9m 14s
  4. Transport Safety and Security
    8m 29s
  5. Vehicle Documents & Transporter Selection
    8m 9s
  6. Terms of Payment
    6m 18s
  7. Transport Documents: CMR, Bill of Lading, Air Waybill
    10m 30s
  8. Assignment : Shipping & Forwarding – Road Cargo
    1m 46s

  1. Duty Drawback Scheme
    6m 49s
  2. EPCG - Export Promotion Capital Goods Scheme
    9m 46s
  3. Duty Exemption Scheme & Advance License
    8m 54s
  4. Duty Free Import Authorisation (DFIA)
    4m 8s
  5. Export Promotion Schemes in India & Remission of Duties and Taxes on Export Products (RoDTEP)
    9m 22s
  6. Transport and Marketing Assistance(TMA) Scheme & Market Access Initiative (MAI) Scheme
    8m 32s
  7. Live Demo: Export Fresh Mangoes
    10m 19s
  8. Live Demo: Export Imitation Jewellery
    12m 2s
  9. Live Demo: Export Bhujia
    11m 13s
  10. Status Holders and Star Export Houses
    8m 16s
  11. Abbreviation - Introductory Terms
    1m 54s
  12. Assignment : Duty Drawback and Government Incentives in Import-Export
    1m 49s

  1. Ministry of Commerce and Industry
    8m 49s
  2. DGFT - Directorate General of Foreign Trade - DGFT
    6m 13s
  3. CBIC - Central Board of Indirect Taxes and Customs
    7m 20s
  4. FIEO - Federation of Indian Export Organisations
    8m 8s
  5. Indian Trade Portal
    7m 12s
  6. Indian Council of Arbitration
    4m 41s
  7. Export Promotion Councils and Commodity Boards
    7m 38s
  8. ECGC - Export Credit Guarantee Corporation of India
    5m 43s
  9. ITPO - India Trade Promotion Organisation
    7m 3s
  10. FICCI - Federation of Indian Chambers of Commerce & Industry
    5m 13s
  11. FFFAI - Federation of Freight Forwarders' Associations in India
    2m 53s
  12. International Organisations - ICC,WTO,WCO,IMO
    8m 4s
  13. Assignment : Controlling Bodies of Import-Export Trade
    1m 37s

  1. Pricing V/S Costing
    4m 7s
  2. Product Costing
    15m 58s
  3. Marketing Cost
    13m 9s
  4. Shipping and Transportation Cost
    11m 49s
  5. Shipment Handling Cost
    7m 44s
  6. Live Demo of Shipping Freight Calculation on Hapag-Lloyd
    26m 1s
  7. Abbreviation - Introductory Terms
    2m
  8. Assignment : Import-Export Costing
    1m 37s

  1. Introduction to Payment Terms in Export and Import
    2m 50s
  2. Clean Payment
    6m 54s
  3. Collection of Bills
    9m 14s
  4. Letter of Credit - L/C
    12m 4s
  5. Format of L/C Draft
    9m 9s
  6. Selection of Payment Method and Risk Assessment
    10m 13s
  7. Abbreviation - Introductory Terms
    2m 10s
  8. Assignment : Exim Payments
    1m 41s

  1. Introduction to Documents Under Collection
    4m 33s
  2. Procedure and Precautions in Documents Under Collection
    14m 48s
  3. Abbreviation - Introductory Terms
    2m 6s
  4. Assignment : Documents Under Collection
    1m 22s

  1. Basics of L/C
    10m 33s
  2. L/C Undertaking
    8m 17s
  3. Standard for Examination of Documents
    8m 59s
  4. Transport Documents & Disclaimer on Effectiveness of Documents
    13m 17s
  5. Abbreviation - Introductory Terms
    2m 32s
  6. Assignment : Documents Under L/C
    1m 51s

  1. Incentive Schemes for MSME
    6m 14s
  2. Project Finance
    5m 7s
  3. Pre-Shipment Finance & Loan Disbursement
    12m 2s
  4. Pre-Shipment Liquidation, EEFC A/c & Non-Compliance
    11m 8s
  5. Post-Shipment Finance
    11m 13s
  6. Credit Line and L/C Negotiation
    18m 30s
  7. Forward Contract
    6m 16s
  8. Export Credit Guarantee Corporation (ECGC)
    12m 20s
  9. Assignment : Banking and Fundraising
    1m 53s

  1. Market Selection
    8m 59s
  2. Find Buyers from e-Commerce Sites & Exim Portals
    13m 20s
  3. Find Buyers from Market Research Companies
    7m 41s
  4. Find Buyers from EPC, Indian Embassies & FIEO
    13m 17s
  5. Find Buyers from Trade Fairs, Business Trips, Commission Agents, Overseas Representatives, Merchant Traders
    18m 31s
  6. Find Buyers from HS Codes
    6m 17s
  7. Exim Marketing & Identifying Market
    10m 11s
  8. Product FAQ Preparation
    10m 13s
  9. Email Format for Contacting Buyer
    9m 23s
  10. Cold Calling for Contacting Buyer
    11m 51s
  11. Abbreviation - Introductory Terms
    3m 10s
  12. Assignment : Methods to Find Buyers
    1m 51s

  1. Introduction to GST
    8m 19s
  2. Impact of GST on Import-Export
    13m 15s
  3. Abbreviation - Introductory Terms
    2m 49s
  4. Assignment : GST and Its Implications in Import-Export
    58s

  1. Course Summary
    16m 18s

  1. Interview Questions
    29m 9s

  1. Career Guidelines
    5m 15s
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