Via Cappellini 18, 20124 Milan, Italy.

Pin: 67930-gih fax: 11135329011347 P.O.BOX NO.: 87529-981

Courier no.: 9361bb C.S.T/P.S.T# 876543 Tin no: 836h-fs E-mail: prefacegarments@yahoo.in

Website: http://www.primejeansbd.com/prface.php

Retailers of garments of all categories and all age groups

To, 22/09/2010

The Head merchandiser,

Shreya textiles,

327 Industrial Area B,

Ludhiana.

9/11/2010

Sir/Mam,

We came to know about your products in the trade fair that was held at Ritz hotel in Paris,
this September and found interest in dealing with you. We request you to prepare the samples
of the summer collection of men polo t-shirt, 100% Cotton, full sleeves, with zipper, for us so
that we can see the type of fit and proceed further with the disposition of order.

The samples of the following art numbers are required:

141001

141002

141031

We would require the samples by 20th November at my buying office in Gurgaon, India

Your’s sincerely,

Mr. James Blunt

Production Head

Preface International, Milan.

 SHREYA TEXILES
327 Industrial Area A

Ludhiana, Punjab, India

pin: 265899262 Tel: 01615437882 Fax: 0161-86546778 e-mail:

shreya_textiles@gmail.com

C.S.T/P.S.T# 8764489 website: shreyatextiles.in/ludhiana

Manufacturers of all types of garments

To, 27/09/2010

Preface international,

Via Cappellini 18, 20124 Milan, Italy.

Refer: samples for art#141001, 141002, 141031

Dear James Blunt,

It was a great pleasure to receive a request for samples from your side as it is a matter of
being gratified to be associated with such a reputed company of yours. All the three art
numbers for which you want the samples are our best sellers and have been liked a lot by
many vendors and buyer. We are sending you 3 samples of each of them of the medium size.
We will be looking forward to your comments and wish that you like our sent samples.

Thanking you,

Your Sincerely,

Shreya Bahl

Head merchandiser

Shreya textiles
 Via Cappellini 18, 20124 Milan, Italy.

Pin: 67930-gih fax: 11135329011347 P.O.BOX NO.: 87529-981

Courier no.: 9361bb C.S.T/P.S.T# 876543 Tin no: 836h-fs E-mail: prefacegarments@yahoo.in

Website: http://www.primejeansbd.com/prface.php

Retailers of garments of all categories and all age groups

To, 11/10/2010

The Head merchandiser,

Shreya textiles,

327 Industrial Area B,

Ludhiana.

Mam,

You would be highly pleased to know that our management and designers really liked your
samples. The finishing was also very good. We would like you to make the shipment for us
and the make the order in 100 sets and breakdown of each set should be like follow.

Kindly send us the sales quotation as per our order. Our agent Mr. Samantha Desuza would
keep in touch with you for the further negotiation.

ART NUM. Colour S M L XL

141001 Blue 5 2 6 2
141003 Orange 4 4 4 4

141031 White 5 2 6 2
Yours sincerely,

Mr. James Blunt

Production Head

Preface International , Milan.

 SHREYA TEXILES
327 Industrial Area A

Ludhiana, Punjab, India

pin: 265899262 Tel: 01615437882 Fax: 0161-86546778 e-mail:

shreya_textiles@gmail.com

C.S.T/P.S.T# 8764489 website: shreyatextiles.in/Ludhiana

Manufacturers of all types of garments

To, 14/10/2010

Preface international,

Via Cappellini 18, 20124 Milan, Italy.

Refer: samples and sales quotation

Dear James Blunt,

We are sending you the samples as per you needed and are also sending the Performa invoice
along with. Please mail us the signed copy of the Performa invoice duly signed.

Thanking you,

Your Sincerely,

Shreya Bahl

Head merchandiser

Shreya textiles Enclosures: Performa Invoice

 PRO-FORMA INVOICE
12388-764 800
SHIPBILL No.___________________________ TOTAL NET WEIGHT: ______kg

FROM TO
Shreya Textiles Preface International
NAME / COMPANY_________________________ NAME / COMPANY_________________________
327 Industrial Area- A
ADDRESS __________________________________ ADDRESSVia Cappellini 18, 20124
_________________________________
Ludhiana
CITY______________________ Milan
CITY______________________
141001 INDIA
POSTCODE __________ COUNTRY: __________ POSTCODE I-10123
__________ COUNTRY:ITALY
__________
0161-2357899 09876-29876544
PHONE/Fax No.______________________________ PHONE/Fax No.___________________________
Shreya Bahl Mr. James Blunt
CONTACT PERSON __________________________ CONTACT PERSON_______________________
SBI BANK A/C# 87254-99
BANK NAME___________ ______________

FULL DESCRIPTION OF COUNTRY QUANTITY UNIT SUB TOTAL

GOODS SAMPLE OF ORIGIN VALUE VALUE
Tick as
appropriate

Men polo t-shirt, 100% 141001 INDIA 1500 £ 50 £ 75000

Cotton, full sleeves, with 141003 1600 £ 50 £ 80000
zipper 141031 1500 £ 50 £ 75000

TOTAL VALUE
AND CURRENCY: 230000

VALUE FOR CUSTOMS PURPOSES ONLY

I declare that the above information is true and correct to the best of my knowledge

Date: _____________ Name: _________________

Signature........................................... (company stamp)
 PURCHASE ORDER
PF 88776
Purchase order no.:......... Date: 21/10/2010
141001, 141002,
Style no.:......................
141031
Preface International
Consignee:...................
Letter of credit
Payment mode:.......
By Ship
Delivery mode:.........

14001

Blue

S M L XL
500 200 600 200
Total:
1500 pcs
No. of Price Total
pieces per price
piece
1500 50 75000
141003

Blue

S M L XL
400 400 400 400
Total:
No. of Price Total
1600 pcs
pieces per price
piece
1600 50 80000

141031
No. of Price Total
Blue pieces per price
piece
S M L XL 1500 50 75000
500 200 600 200
Total:
1500 pcs
TERMS AND CONDITIONS:

a.) the order delivery should be on time or otherwise the shipment would be charged back
highly.

b.) On non delivery of the shipment on time, the shipment would have to be sent by air,
all payment by the seller.

c.) Until and unless the buying office agents apporve the samples, they would not be
considered pass.

IEC NUMBER

Place from where we can receive IEC number from:

An application for grant of IEC number shall be made by the Registered/Head Office of the
applicant to the licensing authority under whose jurisdiction, the registered office in case of
company and Head office in case of others, falls. Option of filing an online application
followed by submission of physical copy of application can also be exercised to avoid delay
caused by deficient applications. PAN is mandatory. Photocopy of PAN card has to be
submitted along the application. If PAN card not issued to the applicant then a copy of PAN
allotment letter from I.T. Department will also be accepted.

Introduction to IEC code:

The IEC code is unique 10 digit code issued by DGFT- Director General of Foreign Trade,
Ministry of Commerce, Government of India to Indian Companies. An application for grant
of IEC number shall be made by the Registered/Head Office of the applicant and apply to the
nearest Regional Authority of Directorate General Foreign Trade, the Registered office in
case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form –
ANF2A’ and shall be accompanied by documents prescribed therein. In case of STPI/ EHTP/
BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which
the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs. There
are to ways to apply Importer-Exporter Code number as following.
An applicant may now choose one of the two options for application submission:
 File an online application and submit a physical copy of the application by taking a
printout of the online application.
 Submit a physical copy of the application directly at the regional DGFT office.
Procedure of online application
1. Applicants can file an on-line application at the DGFT web-site http://dgft.gov.in. On-
line form has been designed to ensure feeding of all the required information by
prompting user wherever a field is left blank. Applicant has to submit scanned copies of
PAN and bank certificate along with their application.
2. There are 2 options for payment of fee.
 If fee is paid by Demand Draft, IEC will be generated only after receipt of the
physical copy of the application.
 If IEC application fee is paid through Electronic Fund Transfer facility, IEC number
will be generated by the licensing office automatically and the number can be viewed
online by the applicant.
 On the receipt of physical copy of the application, the same IEC will be printed in 24
hours time and dispatched to the firm.
Procedure for Physical Application
 One copy of the application must be submitted. Aayaat Niryaat Form – ANF2A
 Demand Draft of Rs.250 evidencing payment of application fee in favor of the
concerned regional office of DGFT. Money can also be paid through Electronic Fund
Transfer (EFT).
 Certificate from the Banker of the applicant firm in the specified format. Appendix
18A
 Self certified copy of Permanent Account Number (PAN) issued by Income Tax
Authorities.
 Two copies of passport size photographs of the applicant
 Photograph on the banker’s certificate should be attested by the banker of the
applicant.
 Self addressed envelope and stamp of Rs.30.
 These documents may be kept secured in a file cover.
The above documents may be sent by post or hand delivered at the concerned regional
DGFT office.
The IEC number should normally be given within two working days provided the application
is complete in all respects and is accompanied by the prescribed documents.

Hints for filling IEC Applications

 Each page of the application form should be signed by applicant
  Enclosed documents should be self attested.
 One photograph of applicant shall be attested by the applicant’s banker.
http://www.etaxindia.org/2010/02/how-to-get-importer-exporter-code-iec-
number-in-india.html
 RCMC CERTIFICATE
GUIDELINES FOR ISSUANCE ONLINE REGISTRATION-CUM-MEMBERSHIP
CERTIFICATE (RCMC) OF CAPEXIL

1. The applicant has to enter his IE Code and at least first three characters of name of his
organisation to
access his company details at CAPEXIL website. The Name must match with the Name as
registered in DGFT while procuring the Import Export Code (IEC).
2. The applicant is required to enter the requisite details in the prescribed form after entering
the IEC and the first three characters of the company’s name.
3. The applicant has to scan and upload the requisite document as per the criteria of
CAPEXIL.
For Manufacturer exporter the following document need to scan and upload:
a. Self Certified copy of Import Export Code (IEC) issued by the licensing authority.
b. Self Certified copy of Personal Account number (PAN).
c. Self Certified copy of Industrial License / Manufacturing License issued by the licensing
authority.
d. Self Certified copy of “Self Declaring that the firm is not black listed by any Government
Department or Government Organisation”
For merchant exporter:
a. Self Certified copy of Import Export Code (IEC) issued by the licensing authority
b. Self Certified copy of Personal Account number (PAN)
c. Copy of Chartered Accountant’s Certificate mentioning Export Turnover / Domestic
Turnover in respect of CAPEXIL’s item for the last two years.
d. Self Certified copy of “Self Declaring that the firm is not black listed by any Government
Department or Government Organisation”
4. All the documents along with the requisite payment must to be sent the respective regional
office of CAPEXIL for the purpose of verification.
5. The requisite fees for the registration is
a. Rs. 3000.00 for admission fees for registration as Small Scale category and Rs. 5000.00 for
Large
Scale category + Service Tax @ 10.3%
b. Subscription fees Rs. 5500.00 per year for Small Scale category + Service Tax @ 10.3%
c. Subscription fees Rs. 11000.00 per year for Large Scale category + Service Tax @ 10.3%
d. Additional panel 1000.00 per panel + Service Tax @ 10.3%
e. Rs. 1000.00 for Dual RCMC for once in every five years + Service Tax @ 10.3%
6. The criteria for Small Scale category is as follows:
a. Turnover of a Merchant firm should be less than 25 Lacs
b. Manufacturing firm has to be a SSI holder
7. The criteria for Large Scale category is as follows:
a. Turnover of a Merchant firm should be more than 25 Lacs
GUIDELINES FOR ISSUANCE ONLINE REGISTRATION-CUM-MEMBERSHIP
CERTIFICATE (RCMC) OF CAPEXIL
b. Manufacturing firm has to be IEM or SIA (Secretariat for Industrial Assistance) certificate
holder
issued by Ministry Of Commerce. Govt. of India
8. The payment should be made in Demand Draft, Cheque in favour of CAPEXIL, payable at
Kolkata, or
through RTGS.
9. Once the applicant furnished all the above information an application number will be
generated and
will be informed for future correspondence. RCMC will be issued from the respective
Regional Office
of CAPEXIL situated at Kolkata, New Delhi, Chennai and Mumbai.
10. Once the RCMC will be issued an exclusive username and password will be generated
and informed
to the applicant through the email address provided by them at the time of filling up the
application.
11. While apply for the RCMC online if the applicant faces any problem and the process gets
stuck in between pages the system will not allow the applicant to reapply for that and it will
show an error message “You have Already applied”. In such case the applicant is requested to
contact the respective region of CAPEXIL for the deletion of their incomplete application.
The detailed contact details of all the regional offices are available in the website of
CAPEXIL under “Reach Us” section.
N.B. The Registration is liable to be cancelled in the event of default in payment of yearly
subscription to CAPEXIL, the registration authority.
CAPEXIL holds all the rights to cancel the registration if the requisite amount is not paid and
also if all the necessary documents mentioned above are not furnished by the applicant.
GUIDELINES FOR ISSUANCE ONLINE REGISTRATION-CUM-MEMBERSHIP
CERTIFICATE (RCMC) OF CAPEXIL
To operate the application of “Issuance of Online RCMC” through our website
www.capexil.com users
from the respective regional offices have to go to the “Admin” section of the website. The
address of the “Admin” “link is www.capexil.com/admin” Once the user opens the link
he/she will be asked to enter the requisite username and password to log in into the “Admin”
account. Remember all the regional offices will have separate username and password. In this
regard they may get in touch with the System Administrator of CAPEXIL to avail the
username and password. After entering the username and password the regional users will be
able to process the applications submitted online by the new applicants.
http://www.capexil.com/onlinehelp.pdf
 Packing List
Manufacture’s name & address : Invoice no. & date : Exporter’s Ref.
FCM/E/01/2-10 DT. 12/6/2010 I.E.C NO. 1233847923
SHREYA TEXILES
Buyer’s Order no. Perform Invoice &Date
327 Industrial Area A
PF 88766. PI-1234 DT 26/12/2010
Ludhiana, Punjab, India

Other Reference(s). :

Country of Origin of Goods Country of Final Destination

INDIA
ITALY

Pre- Carriage by Place of receipt by Pre-carriage Terms of Delivery & Payment :

RAIL LUDHIANA
AS PER L.C.NO. 1ZB/LC/01/2010 DT. 02/04/2010
Vessel/Flight No. Port of loading :
V-1213 A MUMBAI

Port of Discharge : Final Destination :

Mumbai MILAN, ITALY

No.& Kind of Pkgs Description of goods Quantity Amnt

Gross Wt. (Kgs)
(in euro)

Cartons DISCRIPTION OF GOODS & OR SERVICE

FOR 100% OF FOB MUMBAI VALUE OF 800 KGS, 100% COTTON MEN POLO T-SHIRT,
AS PER PERFORMA INVOICE NO. PI-1234 DT 26/12/2010
1-250
Art # Colour S M L Xl
1500, 250kgs
141001 Blue 5 2 6 2
1600, 300kgs 1500*50
Orange 4 4 4 4
1500, 75000
141003 White 5 2 6 2
250kgs
1600*50

80000
141031
1500*50

75000
TOTAL 4600, 230000
800kgs
Declaration :-

1.GOOD EXPORTED OF INDIAN ORIGIN

Commercial Invoice
Manufacture’s name & address : Invoice no. & date : Exporter’s Ref.
FCM/E/01/2-10 DT. 12/02/2011 I.E.C NO. 1233847923
SHREYA TEXILES
Buyer’s Order no. Perform Invoice &Date
327 Industrial Area
PF 88766. PI-1234 DT 26/12/2010
Ludhiana, Punjab, India

Exported to: Other Reference(s). :

Preface International, Country of Origin of Goods Country of Final

INDIA Destination
Via caplini 18, 2024
Milan, Italy
Milan Italy

Pre- Carriage by Place of receipt by Pre-carriage Terms of Delivery & Payment :

RAIL LUDHIANA
AS PER L.C.NO. 1ZB/LC/01/2010 DT. 02/04/2010
Vessel/Flight No. Port of loading :
V-1213 A MUMBAI

Port of Discharge : Final Destination :

Mumbai
Italy

Quantit Rate Amount

y EURO EURO

Cartons DISCRIPTION OF GOODS & OR SERVICE

FOR 100% OF FOB MUMBAI VALUE OF 800 KGS, 100% COTTON MEN POLO
T-SHIRT, AS PER PERFORMA INVOICE NO. PI-1234 DT 26/12/2010
1-250
Art # Colour S M L XL
1500 £ 50 7500
141001 Blue 5 2 6 2 0
1600
141003 Orange 4 4 4 4 8000
1500 £ 50
141031 White 5 2 6 2 0
46*100
7500
£ 50 0

Amount chargeable (IN WORDS) : TOTAL EURO : 230000

Two lakhs thirty thousand only FOB

Declaration : SIGNATURE & DATE

GOODS EXPORTED OF INDIAN ORIGIN

 BILL OF LADING

For combine Transport or Transport Shipment REG office

Shipper Forwarding
SHREYA TEXILES Preface International,

Via caplini 18, 2024

Milan Italy
327 Industrial Area

Ludhiana, Punjab, India

Notify Party
Name…Preface Internatinal Unless marked "non negotiable" express
Add.......Via Caplini 18, 2024
Milan Italy bill, One original bill of lading must be
Pre-Carriage by: Place of receipt by pre-carrier slandered duty in exchange for the good
RAIL LUDHIANA of delivery order for apply.
Vessel/Flight No. V-1213 A Port of loading :
MUMBAI
TELNO.

Port of Discharge Final destination

Mumbai France On carriage to
Marks& No No.& kind of packages Description Of Goods Quantity Measurement
.)
1-2 Two hundred carton

Container No.
E. Seal………………….. Men polo t shirt 100*20*60
1500
100% cotton
ART # 141001 1600
141003 1500
I. Seal…………………. 141031
Shipped On Board Invoice No… FCM/E/01/2-10 DT. 12/02/2011 (carton)
SB NO: 12388-764

IEC No……1233847923
PO No… PF 88776 Date…21/10/2010…

L/C No………SBI-917511…….Date…28/12/2010…………..

Ocean freight payable of destination

Freight collected
FOB Excess Value: Refers to Cause 14.3
Declared and Reversed

ITALY…………………….
 Marine Insurance:-
The Marine Insurance Act , 1963, defines marine insurance as follows ; “ A contract of marine
insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and
to the extend thereby agreed, against marine losses, that is to say, losses incidental to marine
adventure.”

Marine insurance falls under commercial insurance. The policy is taken to reduce business risks. It
caters to small scale business organisations to large corporate. Policy does not cover loss or damage
due to wilful misconduct, ordinary leakage, improper packing, delay, war, strike, riot and civil
commotion.

Different types of Marine Insurance are available :

• Marine import transit insurance

• Marine export transit insurance
• Marine inland transit insurance
• Marine insurance claim procedure
• Marine Hull

Calculation of Marine Insurance Amount/Premium :

Amount of premium depends on factors like nature of cargo, scope of cover, packing, mode of
conveyance, distance and past claims experience. Premium can be paid on a monthly/quarterly/half-
yearly/yearly basis.

Marine Insurance Claim Procedure:

• In case of loss/damage in transit, a monetary claim should be lodged with the carrier within
the time limit to protect recovery rights
• Appointment of surveyor or claim representative in agreement with the insurer to determine
the nature, cause and extent of loss/damage
• The surveyor informs the insurer of the approximate value of loss incurred
• The claim procedure takes from one to three weeks

Documents Required for Marine Insurance Claim:

• Original Invoice & packing List - if forming part of Invoice

• Document of declaration of consignment
• Damage Certificate from the carrier

List of Some of Insurance Companies Offering Marine Insurance:

1. ICICI Lombard - Marine Import Transit Insurance Policy

2. United India Insurance Co. - Marine Cargo
3. The New India Assurance Co. - Marine Cargo Policy
Process of letter of credit

A Letter of Credit is a payment term generally used for international sales transactions. It is
basically a mechanism, which allows importers/buyers to offer secure terms of payment to
exporters/sellers in which a bank (or more than one bank) gets involved. The technical term
for Letter of credit is 'Documentary Credit' LC (as it is commonly referred to) is a payment
undertaking given by a bank to the seller and is issued on behalf of the applicant i.e. the
buyer. The Buyer is the Applicantand the Seller is the Beneficiary. The Bank that issues the
LC is referred to as the Issuing Bank which is generally in the country of the Buyer. The
Bank that Advises the LC to the Seller is called the Advising Bank which is generally in the
country of the Seller.

The specified bank makes the payment upon the successful presentation of the required
documents by the seller within the specified time frame. The process works both in favor of
both the buyer and the seller. The Seller gets assured that if documents are presented on time
and in the way that they have been requested on the LC the payment will be made and Buyer
on the other hand is assured that the bank will thoroughly examine these presented documents
and ensure that they meet the terms and conditions stipulated in the LC.

The essential characteristic of the Letter of Credit is that it relies on the doctrine of strict
compliance for release of payment to the exporter against the draft(s) drawn by him. The
banks do not deal in goods; they deal in documents. As such, the importer has to specify to
the bank the documents which it should examine as evidence to the effect that the exporter
has sent the shipment in strict compliance with the terms and conditions of the export
contract.
 Participants in LC Process

• Buyer
• Issuing Bank
• Advising Bank
• Seller (Beneficiary)

Process of Letter Of Credit

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%3Disch:1&um=1&itbs=1&iact=hc&vpx=606&vpy=286&dur=237&hovh=149&hovw=253&tx
=53&ty=125&oei=D7vqTL_PBYT8cJ-N0ZIK&esq=1&page=1&ndsp=15&ved=1t:429,r:7,s:0
 9 Steps in the Letter of Credit Process

Buyer and seller agree to terms including means of transport, period of credit offered (if
any), and latest date of shipment acceptable.

Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit
standing, and may require cash cover and/or reduction of other lending limits.

Issuing bank issues LC, sending it to the Advising bank by airmail or electronic means
such as telex or SWIFT.

Advising bank establishes authenticity of the letter of credit using signature books or test
codes, then informs seller (beneficiary).

Seller should now check that LC matches commercial agreement and that all its terms and
conditions can be satisfied.

Seller ships the goods, then assembles the documents called for in the LC (invoice,
transport document, etc.).

The Advising bank checks the documents against the LC. If the documents are compliant,
the bank pays the seller and forwards the documents to the Issuing bank.

The Issuing bank now checks the documents itself. If they are in order, it reimburses the
seller's bank immediately.

The Issuing bank debits the buyer and releases the documents (including transport
document), so the buyer can claim the goods from the carrier.
3 Most Common Reasons why Letters of Credit Fail
1) Time Lines: The letter of credit should have an expiration date that gives sufficient time to
the seller to get all the tasks specified and the documents required in the LC. If the
letter of credit expires, the seller is left with no protection. Most LC s fail because
Sellers/Exporters/Beneficiaries were unable to perform within the specified time
frame in the LC.
Three dates are of importance in an LC:
a) The date by when shipment should have occurred. The date on the Bill of Lading.
b) The date by when documents have to be presented to the Bank
c) The expiry date of the LC itself.
A good source to give you an idea of the timelines would be your freight forwarding agent.
As a seller check with your freight forwarding agent to see if you would be in a
position to comply.
2) Discrepancy within the Letter of Credit:
Letters of credit could also have discrepancies. Even a discrepancy as small as a missing
period or comma can render the document invalid. Thus, the earlier in the process the
letter of credit is examined, the more time is available to identify and fix the problem.
This is another common reason why LCs fail.
3) Compliance with the Documents and Conditions within the Letter of Credit.

Letters of credit are about documents and not facts; the inability to produce a given document
at the right time will nullify the letter of credit. As a Seller/Exporter/Beneficiary you should
try and run the compliance issues with the various department or individuals involved within
your organization to see if compliance would be a problem. And if so, have the LC amended
before shipping the goods.
Documentation for letter of credit
When making payment for product on behalf of its customer, the issuing bank must verify
that all documents and drafts conform precisely to the terms and conditions of the letter of
credit. Although the credit can require an array of documents, the most common documents
that must accompany the draft include:

Commercial Invoice
The billing for the goods and services. It includes a description of merchandise, price, FOB
origin, and name and address of buyer and seller. The buyer and seller information must
correspond exactly to the description in the letter of credit. Unless the letter of credit
specifically states otherwise, a generic description of the merchandise is usually acceptable in
the other accompanying documents.

Bill of Lading
A document evidencing the receipt of goods for shipment and issued by a freight carrier
engaged in the business of forwarding or transporting goods. The documents evidence control
of goods. They also serve as a receipt for the merchandise shipped and as evidence of the
carrier's obligation to transport the goods to their proper destination.

Warranty of Title
A warranty given by a seller to a buyer of goods that states that the title being conveyed is
good and that the transfer is rightful. This is a method of certifying clear title to product
transfer. It is generally issued to the purchaser and issuing bank expressing an agreement to
indemnify and hold both parties harmless.

Letter of Indemnity
Specifically indemnifies the purchaser against a certain stated circumstance. Indemnification
is generally used to guaranty that shipping documents will be provided in good order when
available.

Common Defects in Documentation

About half of all drawings presented contain discrepancies. A discrepancy is an irregularity in
the documents that causes them to be in non-compliance to the letter of credit. Requirements
set forth in the letter of credit cannot be waived or altered by the issuing bank without the
express consent of the customer. The beneficiary should prepare and examine all documents
carefully before presentation to the paying bank to avoid any delay in receipt of payment.
Commonly found discrepancies between the letter of credit and supporting documents
include:

• Letter of Credit has expired prior to presentation of draft.

• Bill of Lading evidences delivery prior to or after the date range stated in the credit.
• Stale dated documents.
• Changes included in the invoice not authorized in the credit.
• Inconsistent description of goods.
• Insurance document errors.
• Invoice amount not equal to draft amount.
• Ports of loading and destination not as specified in the credit.
• Description of merchandise is not as stated in credit.
 • A document required by the credit is not presented.
• Documents are inconsistent as to general information such as volume, quality, etc.
• Names of documents not exact as described in the credit. Beneficiary information
must be exact.
• Invoice or statement is not signed as stipulated in the letter of credit.

When a discrepancy is detected by the negotiating bank, a correction to the document may be
allowed if it can be done quickly while remaining in the control of the bank. If time is not a
factor, the exporter should request that the negotiating bank return the documents for
corrections.

If there is not enough time to make corrections, the exporter should request that the
negotiating bank send the documents to the issuing bank on an approval basis or notify the
issuing bank by wire, outline the discrepancies, and request authority to pay. Payment cannot
be made until all parties have agreed to jointly waive the discrepancy.
 European union

The European Union (EU) is an economic and political union

of 27 member states[8] which are located primarily in Europe.
Committed to regional integration, the EU was established by
the Treaty of Maastricht in 1993 upon the foundations of
the European Communities. With over 500 million citizens,[10] the EU generated an
[9]

estimated 28% share (US$ 16.5 trillion) of the nominal and about 21% (US$14.8 trillion) of
the PPP gross world product in 2009.[11]

The EU traces its origins from the European Coal and Steel Community formed among six
countries in 1951 and the Treaty of Rome formed in 1957 by the same states. Since then, it
has grown in size through enlargement, and in power through the addition of policy areas to
its remit. The last amendment to the constitutional basis of the EU came into force in 2009
and was the Lisbon Treaty, by virtue of which the Charter of Fundamental Rights of the
European Union was elevated to legally binding status.[nb 3]

The EU has developed a single market through a standardised system of laws which apply in
all member states, and ensures the free movement of people, goods, services, and capital,
[12]
including the abolition of passport controls by the Schengen Agreement between 22 EU
states and 3 other European states.[13] It enacts legislation in justice and home affairs, and
maintains common policies on trade,[14] agriculture,[15] fisheries and regional development.
[16]
Sixteen member states have adopted a common currency, the euro, constituting
the eurozone.
The EURO , the common currency of the European Union, was launched by 11of the 15
members of the union, on Jan1, 1999.
The exchange rates per euro determined at the time of Euro launch were about US $ 1.17.
One Euro is equivalent to about Rs. 65.
The European Council gives direction to the EU, and convenes at least four times a year. It
comprises the President of the European Council, the President of the European
Commission and one representative per member state; either its head of state or head of
government. The European Council has been described by some as the Union's "supreme
political authority.
^http://ec.europa.eu/dgs/health_consumer/about_us/our_vision_en.htm