Discuss the process involved in securing payment for exports.
The process involved in securing payment for exports are:
a. The exporter informs the importer about the shipment of the goods.
b. Exporters send the documents such as a bill of lading, certified copy of the invoice and the packing list. These are required by the important to claim the title of the good on the arrival at his country and to get the customs clearance.
c. These documents are sent through exporters banker along with an instruction that these may be delivered to the importer only after acceptance of the bill of exchange.
d. The exporters Bank receive the payment through the imported bank and is credited to the exporter's account.
e. The exporter gets immediate payment from his bank if he submits the document by signing a letter of indemnity.
f. After receiving the payment for Exports, the exporter has to obtain a certificate of payment from the bank. This certificate states that all the necessary documentation relating to the export consignment has been presented to the import of payment and the payment has been received according to the exchange control regulations.