9. Cash against documents - cad

Cash against documents is a type of transaction in which the title for purchased goods is released to the buyer after the total sale price is paid using cash. Often, a commission house or a similar financial institution upon verification of the cash payment handles the actual transfer of title. Usage of the cash against document method is commonly employed with transactions that involve the purchase of exports. After accepting an order from an international customer, the exporter prepares the export documents required by both the country of origin and the destination. Among the documents is a form that is normally referred to as an Export Collection Form. This form, along with other manifests and copies of shipping documents, is forwarded to the bank used by the exporter. While it is not always necessary, many exporters choose to prepare a Bill of Exchange, and include that document with the other forms.

10. Documentary collection

A documentary collection (D/C) is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. D/Cs involve using a draft that requires the importer to pay the face amount either at sight (document against payment) or on a specified date (document against acceptance). The draft gives instructions that specify the documents required for the transfer of title to the goods. Although banks do act as facilitators for their clients, D/Cs offer no verification process and limited recourse in the event of non-payment. Drafts are generally less expensive than LCs.

11. What cases may be subject to the international arbitration procedure?

Any disagreements arising from international commercial agreements and other international relationships. In the large number of cases such agreeements may already contain the arbitration clause specifically designed and agreed upon by the contracting parties.

12. What are the advantages of the international arbitration?

International arbitration procedure is suitable for a relatively quick and often less expensive (than national arbitration procedures) dispute resolution. It also obliges both parties to comply with its decision, thus the decision enforcement encounters less difficulties than that of national courts' judgements.In addition the Parties are engaged in the appointement of judges.

13. Who may apply to inernational commercial arbitration?

Any parties - public or private - may apply to the international arbitration, such as international arbitration court at ICC in case of the dispute arising out of the their contract. The parties should agree to submit the dispute to international commercial arbitration by entering into arbitration agreement or adding arbitration clause to the international commercial contract.

14. What is ICC and what is its role in the regulation of international commerce?

ICC (International Chamber of Commerce) was founded in 1919 with an overriding aim that remains unchanged: to serve world business by promoting trade and investment, open markets for goods and services, and the free flow of capital.

Much of ICC's initial impetus came from its first president, Etienne Clémentel, a former French minister of commerce. Under his influence, the organization's international secretariat was established in Paris and he was instrumental in creating the ICC International Court of Arbitration in 1923.

ICC has evolved beyond recognition since those early post-war days when business leaders from the allied nations met for the first time in Atlantic City. The original nucleus, representing the private sectors of Belgium, Britain, France, Italy and the United States, has expanded to become a world business organization with thousands of member companies and associations in around 120 countries. Members include many of the world's most influential companies and represent every major industrial and service sector.