Brief on basics of

International
Trade

By Kamal Singhvi
 What is Trade & essentials
for execution
• Sale and Purchase of ‘Goods & Services’
for consideration
• Mode of deliveries
• Mode of Payments
• Abide by international rules & regulations
• Documentation
• Geographical and Political influence on
trade
• Settlement of Disputes
• Insurance and Indemnities
 Mode of Deliveries
• Road Transport
• Rail Transport
• Sea Transport
• Air Transport
• Wireless Services through Satellite
 Mode of Payments
• TT Remittances
• Cash Payments
• Letter of Credit ( of Various types)
• Barter exchange
 International Rules &
Regulations
• WTO agreements and enforcement
• Insurance & Indemnities
• Restrictive trade practices
(Antidumping and anti-subsidy
enforcement against particular
countries for particular products)
• Canal transits and exorbitant dues
• Geographical & Political restrictions
 Documentations
• Backup documentation of
negotiations
• Sale Purchase Contract
• Mates Receipt
• Bills of Lading
• Charter Party
• Letter of Credit
• Insurance contract
 Geographical & Political
influence on trade
• Gulf Countries Vs Israel
• Somalia and Iraq ( War prone Zone)
• Libya and Cuba ( anti American
wave)
• North Korea and Japan
• Scandinavian countries for their strict
Labour union regulations etc…
• Political tie up and control on major
sea routes ( Suez Canal by Egypt)
 Settlements & Disputes
• International Arbitration laws
• Applicable laws and place of dispute
settlement agreed in the contract
• The cost of arbitration to be born by
whom
• Insurance settlements ( particularly
General Average)
• Enforcement of WTO rules to provide
the uniform ground for settlement
Insurance & Indemnities
• Protection & Indemnity Insurance
• Hull Insurance
• Cargo Insurance
• Cash in transit insurance
• Off Hire Insurance for Time Chartered
Vessels
Essentials of Voyage C/P
• Cargo • Exempted period
description/quantity • Demurrage / Dispatch
• Loading places • Notices
• Loading orders/ • Ships Gear
Rotations • Grab Discharge /
• Discharging places Stevedore
• Lay days and • Overtime
canceling • Shifting / Seaworthy
• Freight trim
• Cost of Loading • Cargo Separation &
/Discharging Tallying
• Notice of readiness • Dues & Taxes
/time counts • Ports & Agents
• Loading/ Discharging
Essentials of Voyage C/P
• Bills of Lading
• Lightening
• General Average
• Strikes
• Exceptions
• Commissions
• Protection Clauses
• Lien
• Ice
• Signature
 Essentials of Time C/p
• Vessel Description • Off hires
• Duration of period • Vessel Performance
• Trading Intentions/ • Vessel Maintenance
Limits • Logbooks
• Cargo Intentions/ • Supercargo
Exclusions • Pollution
• Vessel Condition • Salvage
• Owners • Laying up
Responsibilities
• • Arbitration
Chatterer's
Responsibilities • Lien
• Delivery of Vessel and • Assignment
redelivery • Exception
• Bunkers
• Hire
 Essentials of Time C/p
• Requisitioning
• Bills of Lading
• Stevedoring Damage
• Commissions
• Protective Clauses
• Cargo Claims
• Masters/ Officers
• Signatures
 Bills of Lading
• The Bills of Lading as evidence of
Contract
• The Bills of Lading as document of
title
• The Bills of Lading as a receipt for
the cargo ( title to the cargo)
 Essentials of Bills of
Lading
• Quantity of Cargo
• Accurate cargo description &
Conditions
• Date of Bill of Lading
• Name of Shipper & Consignee
• Ports of Loading and discharging
• Ships name
• Terms & conditions of tariff
• Payment of freight
 Essentials of a firm offer
for Voyage business
• Reply by: ( Place & time Limit)
• For the account of: Name & Background of
Charters
• Name of Vessel: ( Including descriptions eg.
Flag, year of built, LOA, Beam, DWT, Draft,
Cubic Capacity, Single /twin numbers of
Holds, Gear)
• Position & estimated readiness of Vessel
• Cargo Description & Quantity( More or less)
• Load Port / Berth ( Always Afloat but safely a
ground
• Discharge Ports / Berth ( Always Afloat)
•
 Essentials of a firm offer
for Voyage business
• Loading Rate ( per WW Day/SHINC/SHEX)
• Discharge Rate ( per WW Day/SHINC/SHEX)
• Freight rate ( Where , When & How Paid)
• Demurrage rate ( Half Dispatch)
• Loading Discharging Cost (FIO ?) Cargo to be
loaded or discharged to be free of expense to the
carrier
• Address Commission
• Brokerage
• Charter party form
• Subject: ( details / stem/ Shippers’ – receivers
Approvals
 Essentials of a firm offer
for T/C business
• Reply by: ( Place & time Limit)
• For the account of: Name & Background of
Chaterers
• Name of Vessel: ( Including descriptions
eg. Flag, year of built, LOA, Beam, DWT,
Draft, Cubic Capacity, Single /twin
numbers of Holds, gear, Speed &
Consumption of Fuel)
• Position & estimated readiness of Vessel
• Redelivery ( When Where ready, dropping
outward pilots
• Lay days Canceling
• Duration of trip
 Essentials of a firm offer
for T/C business
• Delivery ( When, where ready, passing
• Trading Areas ( ex. World wide, Atlantic
Basin etc…
• Intended trade Ex. Grain trading, Coal
trading
• Cargo exclusions
• Hire rate ( Daily per/ dead weight tonnage
per month)
• Ballast Bonus ( gross or net)
• Bunkers
• Address Commission
 Essentials of Letter of
Credits
• Incorporate all the essential
conditions of Sale Purchase Contract
• Amounts in Currency and the method
of Payments
• Validity of the Letter of Credit
• Revocable or irrevocable Letter of
Credit
 Important Rules &
Clauses
• Hague Rule of 1924
• Hague Visbey Rule of 1974
• Hamburg Rule 1994
• General Avg. Clause
• Paramount Clause
Thanks for your time