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TYPES OF COVER ISSUED BY ECGC : The covers issued by ECGC can be broadly divided into four groups:
i) Standard Policies issued to exporters to protect them against payment risks involved In exports on short-term credit;
ii) Specific Policies designed to protect Indian firm against payment risk involved in (a) exports on deferred terms of payment (b) services rendered to foreign parties and (c) construction works and turnkey projects undertaken abroad;
iii) Financial Guarantees issued to banks in India to protect from the risks of loss involved in their extending financial support to exporters at the pre-shipment as well as post-shipment stages; and
iv) Special Schemes, viz., Transfer Guarantee meant to protect banks which add confirmation to Letters of Credit opened by foreign banks, Insurance cover for Buyer's Credit, Line of Credit, Overseas Investment Insurance and Exchange Fluctuation Risk Insurance.
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PROCEDURE FOR TAMING A POLICY : An intending exporter should fill in a proposal form (no. 12 1) available with all ECGC offices and submit it to the nearest office. After examinin
Permitted Currencies : The payment in foreign trade may be receptor made in a foreign currency which is freely convertible. A freely convertible currency; IS permitted by the rule
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Legal Perspective : Besides commercial necessity, documents for exports have a legal perspective. All over the world, laws regulating export-import trade as we11 as movement of fo
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