Export documents do not have legal perspective.

 (a) Export documents do not have legal perspective.

Ans. For the validity of terms and conditions, there is a need of legal force for any documents or documentation. Besides commercial necessity, documents for exports have a legal perspective. All over the world, laws regulating export-import trade as well as movement of foreign exchange have been enacted. In some countries, the regulations are few which can be enforced through simple procedural and documentation formalities. In other countries, the regulations are many and the enforcement procedures

are complex. There is perhaps no country in the world where movement of goods and money is absolutely free. ‘The minimum regulations that one can think of are the one to record the movement of goods from and into a country. For this purpose, the exporter has to declare on a document the details of goods being exported by him. Other than these basic minimum requirements, the governments all over the world regulate movement of goods to protect political, economic, cultural and other interests and for implementing trade agreements with other countries.

b) Advance payments is not free from any kind of credit or transfer risks from the exporter’s point of view.

Ans. From the exporter's point of view, it is not only the simplest method but also free from any kind of credit or transfer risks. Payment is received before the shipment, and hence, there is no need for prior post-shipment finance of any kind. And as no interest or commission is charged by Indian banks for payment of clean remittances, it works out to be the cheapest method as well. However, in case, the exporters has quoted.in a foreign currency, an exchange risk exists from the date of contract until payment is received from the buyer.

c) For bulk cargo market, demand frequently changes.

Ans. Bulk Cargo by its very nature, can be carried and stored in large quantities mainly because their market demand does not frequently change since they are free from attacks of product development, changes in design, obsolescence, deterioration and depreciation. These cargoes have low unit-value and hence, they can transported and warehoused at low per unit cost only when transported and warehoused in large quantity. The cargoes which have these characteristics are the primary commodities and industrial raw materials such as iron ore, food grains, coal, fertilizers, oils, petroleum products, chemicals and liquefied gas. Bulk Cargo has been divided into two categories, viz., Dry Bulk (e.g, food grains) and Liquid Bulk (e.g., oil and petroleum products).

d) Export promotion has not assumed critical importance in Indian economy.

Ans. Over the last couple of decades export promotion has assumed critical importance in Indian economy, Export growth has become the main determinant of economic growth in India. With the increasing burden of debt-servicing on the one hand and the situation of aid-fatigue,on the other, exports have now emerged as the only viable source of meeting the foreign exchange needs of Indian economy. Hence, the feasibility of financing almost entirely depends upon the growth in Indian exports. It may, therefore, be stated that the future economic growth in India is inseparably linked with growth in Indian exports. Hence, export promotion is being, an. overriding consideration in policy formulation. Export promotion policy in India has three main segments. They are as follows:

a) Policies for increasing investment and production in export sector.

b) Price-support measures for rendering exports more competitive.

c) Measures for strengthening marketing effort by the export sector.

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