Reyansh Goswami

IEC Stands for IMPORTER EXPORTER CODE. No export or import shall be made by any person without an Importer-Exporter Code (IEC) number unless specifically exempted.

The term cargo insurance, popularly known as marine insurance, applies to all modes of transportation. The need for export (or import) cargo insurance often differs from exporter to exporter (or importer to importer) and from consignment to consignment. Unless the insurance is mandatory in a trade term, the exporter or the importer may opt not to insure the goods at his/her own risks. Depending on the international commercial terms, either the seller (the exporter) or the buyer (the importer) is responsible for insuring the cargo. The seller is obligated to insure the cargo in the CIF (Cost Insurance and Freight) and CIP (Carriage and Insurance paid) terms. The seller may opt not to insure the cargo at his/her own risks in the DDU (Delivered Duty Unpaid) and DDP (Delivered Duty Paid) terms. The trade terms DDU and DDP are often used in the turnkey projects where the amount at stake is large. In practice, the seller usually insures the cargo in the DDU and DDP terms.

The entity bringing goods for Temporary purpose should have obtained a Customs business code based on their license issued by the concerned mainland entity.

Customs declaration for Temporary admission should be submitted with the reason for temporary admission of the goods. A deposit equivalent to Customs duty will be applicable according to the Customs tariff on the item which will be refunded upon re-exportation of the goods within the timelines allotted for Temporary admission.

In case the goods are covered under ATA carnet, then no deposit is applicable. The timeline of temporary admission for ATA carnet will be 6 months or until the validity of the ATA carnet whichever is lesser.

To limit a distributor from supplying competing products is something that many exporters are afraid to include in the distribution agreements – but they should. A contract that is well drafted stops problems arising in B2B markets.

You have to remember that your distributor is not being bothered while distributing your products. When you limit the distribution of competitors you increase the probability of success for both of you. Distribution of competing products, of course, may ruin a particular market.

If you want to limit the distribution of some competing goods you must negotiate with distributors to make sure they understand and will do their best to ensure the success of your product.

Of course, not necessarily, but very frequent. In most cases trade represents a sales of products, where the buyer and seller are located in two separate countries. But some exceptions exist, for example:

1. When goods are submitted for exhibition purposes, and then sent back to their owner.

2. On personal occasions, when goods are shipped because a person moves from one country to another.

3. When companies shift their stocks between different locations in different countries.