{"id":696,"date":"2015-12-07T05:33:13","date_gmt":"2015-12-07T05:33:13","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=696"},"modified":"2021-11-15T11:52:51","modified_gmt":"2021-11-15T06:22:51","slug":"specific-policy-for-supply-contracts","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/","title":{"rendered":"SPECIFIC POLICY FOR SUPPLY CONTRACTS"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d09e311159c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d09e311159c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#SPECIFIC_POLICY_FOR_SUPPLY_CONTRACTS\" title=\"SPECIFIC POLICY FOR SUPPLY CONTRACTS\">SPECIFIC POLICY FOR SUPPLY CONTRACTS<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Formalities_to_be_completed_before_applying_for_specific_policies_for_contracts\" title=\"Formalities to be completed before applying for specific policies for contracts\">Formalities to be completed before applying for specific policies for contracts<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Risk_Covered\" title=\"Risk Covered:\">Risk Covered:<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Commercial\" title=\"Commercial\">Commercial<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Political\" title=\"Political\">Political<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#LC_Opening_Bank_Risks\" title=\"L\/C Opening Bank Risks\">L\/C Opening Bank Risks<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Important_Obligations\" title=\"Important Obligations:\">Important Obligations:<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/specific-policy-for-supply-contracts\/#Highlights\" title=\"Highlights:\">Highlights:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<figure id=\"attachment_9040\" aria-describedby=\"caption-attachment-9040\" style=\"width: 587px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/38.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9040\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/38.png\" alt=\"www.carajput.com; Contact us\" width=\"587\" height=\"354\" \/><\/a><figcaption id=\"caption-attachment-9040\" class=\"wp-caption-text\">www.carajput.com; Contact us<\/figcaption><\/figure>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SPECIFIC_POLICY_FOR_SUPPLY_CONTRACTS\"><\/span><span style=\"color: #000080;\"><strong>SPECIFIC POLICY FOR SUPPLY CONTRACTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\">The Standard Policy is a whole turnover policy designed to provide a continuing insurance for the regular flow of an exporter&#8217;s shipments for which credit period does not exceed 180 days.<\/p>\n<p style=\"text-align: justify;\">Contracts for export of <a href=\"https:\/\/carajput.com\/blog\/tag\/capital-gains-chargeable\/\">capital goods<\/a> or turnkey projects or construction works or rendering services abroad are not of a repetitive nature and they involve medium\/long-term credits.<\/p>\n<p style=\"text-align: justify;\">Such transactions are, therefore, insured by ECGC on a case-to-case basis under Specific Contract Policies.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Formalities_to_be_completed_before_applying_for_specific_policies_for_contracts\"><\/span><span style=\"color: #800080;\"><strong>Formalities to be completed before applying for specific policies for contracts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">All contracts for export on deferred payment terms and contracts for turnkey projects and construction works abroad require prior clearance of Authorized Dealers, EXIM Bank or the Working Group in terms of powers delegated to them as per exchange control regulations.<\/p>\n<p style=\"text-align: justify;\">Applications for the purpose are to be submitted to the Authorized Dealer (the financing bank), which will forward applications beyond its delegated powers to the EXIM Bank.<\/p>\n<p style=\"text-align: justify;\">Proposals for Specific Policy are to be made to ECGC after the contract has been cleared by the Authorized Dealer, EXIM Bank or the Working Group, as the case may be.<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Risk_Covered\"><\/span><span style=\"color: #800080;\"><strong>Risk Covered:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Commercial\"><\/span><span style=\"color: #800080;\"><strong>Commercial<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Insolvency of buyer<\/p>\n<p style=\"text-align: justify;\">Protracted default of buyer<\/p>\n<p style=\"text-align: justify;\">Buyer\u2019s failure to accept goods<\/p>\n<ul style=\"text-align: justify;\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Political\"><\/span><span style=\"color: #800080;\"><strong>Political<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">War, Civil War, Revolutions in buyer\u2019s country<\/p>\n<p style=\"text-align: justify;\">New Import restrictions<\/p>\n<p style=\"text-align: justify;\">Transfer delays<\/p>\n<ul style=\"text-align: justify;\">\n<li>\n<h4><span class=\"ez-toc-section\" id=\"LC_Opening_Bank_Risks\"><\/span><span style=\"color: #800080;\"><strong>L\/C Opening Bank Risks<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Insolvency<\/p>\n<p style=\"text-align: justify;\">Default<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800080;\"><strong>Loss Coverage:\u00a0<\/strong><\/span>90%<\/p>\n<h1 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Important_Obligations\"><\/span><span style=\"color: #800080;\"><strong>Important Obligations:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<ul style=\"text-align: justify;\">\n<li>Obtain indicative premium rate at bid stage<\/li>\n<li>Seek post awarded approval from AD\/WG on award of contract<\/li>\n<li>Obtain in-principle approval<\/li>\n<li>Seek cover after payment of premium<\/li>\n<li>Advise progress of project in accordance with PEM guidelines<\/li>\n<li>Declaration of overdue payments<\/li>\n<li>Filing of claim within 12 months from due date<\/li>\n<li>Sharing of recovery<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">Also read-Basic details of IRP on GST<\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Highlights\"><\/span><span style=\"color: #800080;\"><strong>Highlights:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li>Cover can be either for political or comprehensive risks<\/li>\n<li>Add on pre-shipment risk cover can also be obtained<\/li>\n<li>Cover for full insurable value including retention portion<\/li>\n<li>Cover for third country exports as well<\/li>\n<li>Premium can be paid in installments<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Reduced premium for projects funded by Multi-lateral agencies.<\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.<\/p>\n<p style=\"text-align: justify;\">Hope the information will assist you in your Professional endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SPECIFIC POLICY FOR SUPPLY CONTRACTS &nbsp; The Standard Policy is a whole turnover policy designed to provide a continuing insurance for the regular flow of an exporter&#8217;s shipments for which credit period does not exceed 180 days. Contracts for export of capital goods or turnkey projects or construction works or rendering services abroad are not &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150,9,4,1],"tags":[3978,3975,3976,3979,3977,3974],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/696"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=696"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/696\/revisions"}],"predecessor-version":[{"id":18829,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/696\/revisions\/18829"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}