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Bank of Baroda Introduction :

The Bank of Baroda was established in the year 1908 in Baroda. Ever since its inception, the bank has been growing and expanding its branches successfully. At the turn of a century, the bank has its presence in 25 countries across the world. Bank of Baroda has progressively taken a step towards commitment and values by providing uncompromising standards of service to its customers, stakeholders, employees and the like.

Import Finance: Bank of Baroda provides various types of funding/ services to the importers for facilitating the imports in the country. The vast network of Bank's overseas branches/ subsidiaries and Correspondent Banks worldwide facilitate prompt & efficient services to the importers. All the facilities are subject to the prevalent rules of the Bank/ RBI guidelines.

The various facilities provided are:


Collection of import bill. Opening of Import L/Cs (Sight/ DA) Financing of import by way of Foreign Currency Loans Issuing Guarantees etc. on behalf of importers.

COLLECTION OF IMPORT BILLS: The import bills are collected through the 131 authorised branches at very competitive rates. The Bank has correspondent relationship with reputed International Banks throughout the world and can provide the services to importers who may be importing from any part of the globe. LETTER OF CREDIT:

Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known international Bank of repute, the L/Cs of the Bank of Baroda are well accepted in the International market. With the Letter of Credit of Bank of Baroda, importers can build up better trust/ confidence in their suppliers and develop other business relationship at a much faster pace. The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/ financial strength and other parameters being to the satisfaction of the Bank.

Pre-Shipment/Post-Shipment Credit in Foreign Currency to Exporters : Bank of Baroda provides PCFC in foreign currency to the exporters enabling them to fund their procurement, manufacturing/ processing and packing requirements. These loans are available at very competitive international interest rates covering the cost of both domestic as well as import content of the exports. The PCFC can be availed in US$, Euro, GBP and Japanese Yen. The corporations/ exporters with a good track record can avail of a running account facility with the Bank for PCFC. To qualify for this purpose, the exporters overdue bill should not exceed 5% of the average annual export realisation during the preceding -3- years. Key Benefits

In case of cancellation of export order, the PCFC can be closed by selling equivalent amount of foreign exchange at TT selling rate prevalent on the date of liquidation.

The forward covers can be booked in respect of future PCFC drawings. The PCFC drawings are also permitted in cross currency subject to exporter bearing the risk in currency fluctuations.

Terms & Conditions

The corporations/exporters having firm export orders or confirmed L/C are eligible for PCFC, provided they satisfy other credit norms of the Bank.

PCFC in foreign currency is available for a maximum period of 180 days from the date of first disbursement, similar to the case of Rupee facility.

PCFC is to be repaid with the proceeds of the export bill submitted after shipment. The PCFC in foreign currency are granted through the Integrated Treasury Branch at Mumbai.

Multi-currency drawings against the same orders are not permitted due to operational inconvenience.

Cross-country drawings are restricted to US dollars. In case, the export order is in a non-designated currency like Swiss Franc etc. PCFC will be given only in US$. For orders in Euro, Pound Sterling and JPY, PCFC can be availed in the respective currencies or US$ at the choice of exporter.

Export Finance

Bank of Baroda, being Indias International bank is very active in Export promotion. With the operating network of our own branches/offices in 25 countries and worldwide correspondent relationships, our clients enjoy comforts in transacting international business. Besides the world-class services, we also provide Export Finance to Exporters at concessive terms to facilitate their competing in the global market.

Our Export Finance is made available at pre shipment and post shipment stage to exporters in various types of credit.

Introduction An exporter without any commercial contract is completely exposed of foreign exchange risks that arises due to the probability of an adverse change in exchange rates. Therefore, it becomes important for the exporter to gain some knowledge about the foreign exchange rates, quoting of exchange rates and various factors determining the exchange rates. In this section, we have discussed various topics related to foreign exchange rates in detail. Export from India required special document depending upon the type of product and destination to be exported. Export Documents not only gives detail about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification.

Shipping Bill / Bill of Export Shipping Bill/ Bill of Export is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, included ship's owner, seller, buyer and some other parties. For each one represents a kind of certificate document. Documents Required for Post Parcel Customs Clearance

In case of Post Parcel, no Shipping Bill is required. The relevant documents are mentioned below:

Customs Declaration Form - It is prescribed by the Universal Postal Union (UPU) and international apex body coordinating activities of national postal administration. It is known by the code number CP2/ CP3 and to be prepared in quadruplicate, signed by the sender.

Despatch Note- It is filled by the exporter to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted.

Commercial Invoice - Issued by the exporter for the full realisable amount of goods as per trade term.

Consular Invoice - Mainly needed for the countries like Kenya, Uganda, Tanzania, Mauritius, New Zealand, Burma, Iraq, Ausatralia, Fiji, Cyprus, Nigeria, Ghana, Zanzibar etc. It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export.

Customs Invoice - Mainly needed for the countries like USA, Canada, etc. It is prepared on a special form being presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate.

Legalised / Visaed Invoice - This shows the seller's genuineness before the appropriate consulate or chamber or commerce/ embassy.

Certified Invoice - It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with specific contract. Sight Draft and Usance Draft are available for this. Sight Draft is required when the exporter expects immediate payment and Usance Draft is required for credit delivery.

Packing List - It shows the details of goods contained in each parcel / shipment. Certificate of Inspection It is a type of document describing the condition of goods and confirming that they have been inspected.

Black List Certificate - It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s).

Manufacturer's Certificate - It is required in addition to the Certificate of Origin for few countries to show that the goods shipped have actually been manufactured and is available.

Certificate of Chemical Analysis - It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc.

Certificate of Shipment - It signifies that a certain lot of goods have been shipped. Health/ Veterinary/ Sanitary Certification - Required for export of foodstuffs, marine products, hides, livestock etc.

Certificate of Conditioning - It is issued by the competent office to certify compliance of humidity factor, dry weight, etc. Antiquity Measurement It is issued by Archaeological Survey of India in case of antiques.

Shipping Order - Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.

Cart/ Lorry Ticket - It is prepared for admittance of the cargo through the port gate and includes the shipper's name, cart/ lorry No., marks on packages, quantity, etc.

Shut Out Advice - It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter.

Short Shipment Form - It is an application to the customs authorities at port which advises short shipment of goods and required for claiming th

NEGOTIATION / DISCOUNTING OF BILLS UNDER LETTER OF CREDIT Bank provides an advance against Bills of Exchange negotiated under Letter of Credit in favour of exporter.By negotiating document, the bank will pay exporter using its funds and will collect payment from buyer back at later date. This facility is provided without recourse to exporter, provided he fulfills all the terms and conditions Pre-Shipment/Post-Shipment Credit in Foreign Currency to Exporters

Bank of Baroda provides PCFC in foreign currency to the exporters enabling them to fund their procurement, manufacturing/ processing and packing requirements. These loans are available at very competitive international interest rates covering the cost of both domestic as well as import content of the exports. The PCFC can be availed in US$, Euro, GBP and Japanese Yen.

The corporations/ exporters with a good track record can avail of a running account facility with the Bank for PCFC. To qualify for this purpose, the exporters overdue bill should not exceed 5% of the average annual export realisation during the preceding -3- years. EXPORT BILL REDISCOUNTING: Bank of Baroda offers financing of export by way of bill discounting of export bills to provide post shipment finance to the exporters at competitive international rate of interest. This facility is available in -4 currencies i.e. US$, Pound Sterling, Euro and JPY. Terms and conditions:

Export bills (both Sight and Usance) can be purchased/ discounted provided they comply with the norms of the Bank/ RBI.

All exporters are eligible to cover the bills drawn under L/C, non-credit bills under sanctioned limits under the Bill discounting Scheme.

Bank provides various types of funding/ services to the importers for facilitating the imports in the country. All the facilities are subject to the prevalent rules of the Bank/ RBI guidelines. The various facilities provided are: 1. Collection of import bill. 2. Opening of Import L/Cs (Sight/ DA). 3. Financing of import by way of Foreign Currency Loans. 4. Issuing Guarantees etc. on behalf of importers. COLLECTION OF IMPORT BILLS: The import bills are collected through the 95 authorised branches at very competitive rates. The Bank has correspondent relationship with reputed International Banks throughout the world and can provide the services to importers who may be importing from any part of the globe.

LETTER OF CREDIT: Bank of Baroda offers L/C facility for the purchase of goods in the international market. Being a well-known international Bank of repute, the L/Cs of the Bank of Baroda are well accepted in the International market. With the Letter of Credit of Bank of Baroda, importers can build up better trust/ confidence in their suppliers and develop other business relationship at a much faster pace. The vast network of Bank's overseas branches/ subsidiaries and Correspondent Banks worldwide facilitate prompt & efficient services to the importers. The L/C facility can be granted to the importers after assessing their requirement/ credit worthiness/ financial strength and other parameters being to the satisfaction of the Bank. BANK GUARANTEES: Bank of Baroda on behalf of importers/ other customers issues guarantees in favour of beneficiaries abroad. The guarantees can be both Performance and Financial. The extensive world wide network of branches of the Bank offer correspondent banking services to the Indian Banks as well as Banks from other countries. The branches are capable of providing the services that an international correspondent Bank can offer. All the branches of the Bank are well equipped to handle the business of Correspondent Banking. The New York, Brussels and London Branches of the Bank are equipped with latest technology and are having trained and experienced staff for handling the maintenance of Nostro accounts in US$, Euro and GBP respectively. The overseas presence of the Bank is further supported by a large number of correspondent Banks (more than 500) which gives Bank of Baroda access to every corner of the Globe. The main services provided are:

1. Collection of bills both Documentary and Clean. 2. Advising / confirming of L/Cs opened by Indian Banks. 3. Discounting of Bills drawn under L/Cs as well as outside L/Cs. 4. Maintenance of foreign currency accounts (Nostro in US$, Euro, GBP at New York, Brussels and London respectively) for settlement of transactions (Link). 5. Making foreign currency payments/ remittance on behalf of customers of Indian Banks. Bank of Baroda offers an excellent service with competitive charges to other Banks for providing Correspondent Banking Services. Bank of Baroda through its overseas branches and subsidiaries, is very active in financing of Usance post sales international trade bills by way of discounting of the same. With its large foreign currency resources, Bank of Baroda is in a position to offer the most competitive rates for discounting of these bills. The bills under the L/Cs of the most of the Indian Banks as well as International Banks can be discounted at competitive rates. The Banks/ Corporations desirous of discounting the bills under/ outside L/Cs can contact the respective overseas money center branches / overseas subsidiaries. They may also contact the International Division, Central Office at the following address: Bank of Baroda has a strong presence in the Treasury Market in India as well as abroad. Abroad, Money Centre Branches undertake the foreign exchange treasury operations on behalf of the customers. All the foreign exchange treasuries at the overseas money center branches are equipped with state of art technology, highly experienced and motivated staff with professional skills. These branches deal in all the major international currencies i.e. US$, GBP, Euro, Yen as well as other currencies. These branches undertake the following treasury related activities:

1. Forex Inter Bank Placements/ Borrowings. 2. Sale & Purchase of currency on behalf of customers. 3. Forward Cover Bookings. 4. Cross Currency Swaps. 5. Interest Rate Swaps (IRS). 6. Forward Rate Arrangements (FRAs). 7. Forex Money Market Operations. .