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INTRODUCTION : Export business has become very complex and highly risky. Insolvency rate is on the increase. Balance of payment difficulties have severely affected the capacity of many countries to pay the import price. In such a high risk situation, export credit insurance is very much helpful for the exporters and the banks who finance the export transactions. In this unit, you will learn various types of covers issued by ECGC and basic principles of its operation. You will also be acquainted with the procedure for making a claim and financial guarantees provided to banks.
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FINANCIAL GUARANTEES: Exporters require adequate financial support from banks to carry out their export contracts; ECGC's guarantees protect the banks from losses on account of th
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ECGC SCHEMES FOR COVERING EXCHANGE RISKS: The ECGC has evolved two schemes to provide greater protection to exporters of capital goods and turnkey project against the risk of fluc
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Sales Tax Exemption : Purchase of goods meant for exports are exempted from sales tax including Central Sales Tax. However, the purchaser of goods has to be a registered dealer fo
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OBJECTIVES After studying this unit, you should be able to : 1. describe the need of cargo insurance in international business; 2. explain various kind of perils covered
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