2.  Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament “THE EXPORT-IMPORT BANK OF INDIA ACT, 1981” for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for co- ordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade and for matters connected therewith or incidental thereto.

3.  Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign currency, provides access to finance at the manufacturing stage - enabling exporters to purchase raw materials and other inputs.  Pre-shipment credits are usually extended by exporters’ commercial banks for period upto 180 days.  Exim Bank extends pre-shipment / post-shipment credit either directly or in participation with commercial banks. In order to offer one-stop banking products to export clients, the Bank has also been offering short-term pre / post shipment credit either directly or through exporter’s bankers.  Exim Bank may consider extending pre-shipment credit and post-shipment credit for periods exceeding 180 days, on case-to-case basis and subject to the merits of the case.

4.  This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at the post-shipment stage.  Post-shipment Supplier’s Credit can be extended to Indian exporters upto the extent of the deferred credit portion of the export contract, either in Rupees or in Foreign currency.  The period of deferred credit and moratorium will generally depend on the nature of goods [List A and List B of Memorandum PEM] or nature of projects, as per guidelines contained in the Memorandum PEM of RBI.

5.  Capital Equipment Finance Programme [CEFP] has been conceived to cater to capital expenditure for procurement of capital equipment to be utilized across multiple contracts.  CEFP provides direct access to Exim Bank’s finance for eligible Indian companies for procurement of indigenous and imported capital equipment for executing overseas projects / deemed export projects.

6.  Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services, so that they can, in turn, extend term credit to overseas importers.

7.  Indian companies can avail of guarantee facilities of different types to furnish requisite guarantees to facilitate execution of export contracts (including deemed export contracts) and import transactions.

8.  Advance Payment Guarantee (APG): Issued to project exporters to secure a project mobilization advance as a percentage (10- 20%) of the contract value, which is generally recovered on a pro-rata basis from the progress payment during project execution.  Performance Guarantee (PG): PG for up to 5-10% of contract value is issued valid until completion of maintenance period and/or grant of Final Acceptance Certificate (FAC) by the overseas employer/client.

9.  Retention Money Guarantee (RMG): This enables the exporter to obtain the release of retained payments from the client prior to issuance of Project Acceptance Certificate (PAC)/ Final Acceptance Certificate (FAC).  Other Guarantees: e.g. in lieu of customs duty or security deposit for expatriate labour, equipment etc.  Eligibility: Indian project exporters securing overseas or deemed export contracts.

10.  A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission.  A firm or individual who trades for his own account is called a trader.  Commodity contracts include futures, options, and similar financial derivatives.  Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.

11.  A freight rate (historically and in ship chartering simply freight) is a price at which a certain cargo is delivered from one point to another.  The price depends on the form of the cargo, the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the delivery destination.  Many shipping services, especially air carriers, use dimensional weight for calculating the price, which takes into account both weight and volume of the cargo.

12.  Shipbroking is a financial service, which forms part of the global shipping industry.  Shipbrokers are specialist intermediaries/negotiators (i.e. brokers) between shipowners and charterers who use ships to transport cargo, or between buyers and sellers of vessels.

13.  Tanker brokers specialize in the chartering of Tankers, which requires a different skillset, knowledge and contacts from Dry Cargo broking. Tanker brokers may specialize in crude oil, gas, oil products or chemical tankers.  Tanker brokers similarly negotiate maritime contracts, known as Charter Parties. The main terms of negotiation are freight/hire anddemurrage.

14.  Oil being a fast moving trade, freight rates for crude oil tanker charters are most commonly based on the Worldscale Index; the Worldscale Association publishes flat rates annually.  For some specific voyages, such as named voyages (i.e. from A to B) and for specialist ships, like LNG tankers (a highly specialized sector of the tanker market), freight rates can be agreed on a lumpsum (or dollar per ton) fixed rate between both parties.  But it is very hard nowadays. there is no scope.

15.  Container brokers specialize in the chartering of container ships and provide container shipowners and charterers with market-related information and opportunities.

16.  The term "demurrage" from Old French demeurage, from demeurer - to linger, tarry - originated in vessel chartering and referred to the period when the charterer remained in possession of the vessel after the period normally allowed to load and unload cargo (laytime).  By extension, demurrage refers to the charges that the charterer pays to the shipowner for its extra use of the vessel. Officially, demurrage is a form of liquidated damages for breaching the laytime as it is stated in the governing contract (the charter party).  The demurrage sometimes causes a loss to the seller as it increases cost of the total freight.

17.  The reverse of demurrage is despatch. If the charterer requires the use of the vessel for less time than the laytime allowed, the charter party may require the shipowner to pay despatch for the time saved.  The term demurrage has been incorrectly extended to use in the hire or rental of assets other than ships.  Loss of use resulting in additional hire is not demurrage.

18.  A freight forwarder, forwarder, or forwarding agent, also known as a non- vessel operating common carrier (NVOCC), is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

19.  Forwarders contract with a carrier or often multiple carriers to move the goods. A forwarder does not move the goods but acts as an expert in the logistics network.  These carriers can use a variety of shipping modes, including ships, airplanes,trucks, and railroads, and often multiple modes for a single shipment.  For example, the freight forwarder may arrange to have cargo moved from a plant to an airport by truck, flown to the destination city, then moved from the airport to a customer's building by another truck.

20.  International freight forwarders typically handle international shipments. International freight forwarders have additional expertise in preparing and processing customs and other documentation and performing activities pertaining to international shipments.

21.  Information typically reviewed by a freight forwarder includes the commercial invoice, shipper's export declaration, bill of lading and other documents required by the carrier or country of export, import, and/or transshipment.  Much of this information is now processed in a paperless environment.

22.  The FIATA shorthand description of the freight forwarder as the 'Architect of Transport' illustrates the commercial position of the forwarder relative to its client.  In Europe, some forwarders specialize in 'niche' areas such as rail-freight, and collection and deliveries around a large port.