Presentation Title Trade-Logistics interfaces and related challenges Presented by: Krishnan Subramaniam FICS Head of Projects – Fusion group of companies President – ICS Middle East branch 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Interfaces in International Trade Merchant - Carrier Contract of Carriage Contract of Customs Insurance Clearance Insurer - Assured Contract of Export-Import Sale Seller - Buyer 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Contracts - Considerations Physical nature of the goods Movement of the goods Division of costs Transfer of risk Responsibility for task 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
SELLER CARRIER BUYER CONSIGNEE SHIPPER FORWARDER BANKS INSPECTION AGENTS PACKAGING PORT CUSTOMS CHAMBER WAREHOUSE 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Costs and Risk How do you handle them? TAKE TERMINATE TREAT TRANSFER 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
What? Where? Sales Contracts Responsibility of Carriage Exp-Imp clearance When? from 1936 Costs & Risks Why? Assist trading Title Who? Payment Potential issues ? 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Real incident .. Before After 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
EXW Transport by ? From where ? Loading by ? 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
• Removal – EXW, FAS, DDP • Unfold FCA in two Incoterms – Terrestrial and Maritime • FOB and CIF for container shipping • Creation of a new Incoterm: CNI • Two Incoterms based in DDP – DTP, DPP 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Main Parameters Goods Payment terms Specific / Unascertained goods Price Quantity – Currency Unit/Range/Tolerance Mode of Payment Quality / Specification Credit days Inspections Documentation Time Limits Document of Title Credit validity Transport document Shipment / Delivery Quality / Quantity reports Document submission Financial / Commercial Insurance 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Common modes of transaction • Open Account • Bills for Collection RISKS managed – Documents against Acceptance Buyer Seller – Documents against Payment Country • Letters of Credit Exchange control – Documentary Credits Balanced security for Seller and Buyer. – Standby L/C • Advance Payment 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Is L/C Risk-free? 1999 Metals Trading Company, Sharjah 400 3000 19 2003 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
BLOCK CHAIN IN TRADE FINANCE TRANSPARENCY TRACEABILITY SECURITY EFFICIENCY AUDITABILITY COLLABORATION 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Understand the 3 flows Align the various contracts Assess risks and mitigation measures Quantify residual risks 11 th Global Supply Chain and Logistics Summit 28 Nov 2018 www.sclgsummit.org
Recommend
More recommend
