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Frieght Knowledge Centre

Resources and FAQs on freight forwarding for logistics and supply chain professionals

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What is Line of Credit?

A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds.

What are the important payment terms used in EXIM?

  • Clean Payments
  • Payment Collection of Bills in International Trade
  • Letter of Credit L/c

Why is Insurance necessary in EXIM Trade?

Export Credit Insurance or ECI ≈ Export Credit Insurance or ECI protects against the risk of non-payment by a foreign buyer. If one's company is an exporter or importer, or both, then having the relevant insurance cover in place is essential to ensure the continued success of the company in the future.

How is insurance calculated in EXIM?

Factors Involved in Calculating Marine Insurance premium

The premium of a marine insurance plan depends on the following factors:
  • The nature and value of the goods which are being transported
  • Applicable freight incurred for transportation
  • Any inherent risk in the goods
  • The route being taken for the voyage
  • The type of vessel used for transportation and its construction
  • The destination of the goods
  • Political risks, riots, commotion or unrest which would impact the delivery of goods
  • Natural calamities which might occur – Floods, high tides, etc.

The premium of a marine insurance policy varies on a case to case basis and is not universal.