FAQ
1. What is PRE-SHIPMENT INSPECTION and why is it required?
Worldwide programs that are required by governments of many developing countries to verify whether imports meet quality, price, and customs classification requirements.
Minimizes import of sub-standard goods
Assists in proper duty/tax collections
Assures proper customs declaration of goods
Discourages smuggling
2. What is GENERAL AVERAGE?
A general average loss occurs when cargo and or/vessel equipment are deliberately sacrified in the interest of preventing or mitigating a greater loss to the vessal and cargo. The vessel owner and all the cargo owners indemify, pro-rate according to the value of their respective interests, those owners (cargo and vessel) who sustained losses.
3. What is a STANDBY LETTER OF CREDIT?
A Standby letter of credit serves as assurance that the applicant will fulfill the obligations of the contract of sale. The beneficiary draws under the Standby Letter of Credit only when the applicant fails to meet these terms. The format of a Standby letter of credit is significantly different from a Commercial letter of credit.
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