Analysis of discrepancies 2

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“ANALYSIS OF DISCREPANCIES”
(in Trade Transactions)
In
KOTAK MAHINDRA BANK LTD.
Submitted to
Area manager
TRADE FINANCE
Submitted By
XYZ
ROLL Number : xxxxxx
Program : BBA
COLLEGE : JAGAN INSTITUTE OF MANAGEMENT STUDIES
SECTOR -5, ROHINI

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Certificate by guide
To whom it may concern
This is to certify that the summer training project entitled “ANALYSIS OF
DISCREPANCIES (in trade transaction)” for the award of the degree of BBA from
JIMS INSTITUTE OF MANAGEMENT STUDIES, SECTOR-5, ROHINI is a record
of project carried out by XYZ, Roll Number xxx under my supervision and guidance, no
part of this project has been submitted to any other Degree/Diploma and this report may
be taken for evaluation.
Area Manager
Trade finance

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Declaration
I hereby declare that the project report “ANALYSIS OF DISCREPANCIES (in trade
transaction)” submitted in partial fulfilment of the award for the degree of BBA from
JAGAN INSTITUTE OF MANAGEMENT STUDIES, SECTOR-5, ROHINI is one of
my original work and not submitted to any other Degree/Diploma, fellowship or other
similar title.
XYZ
Roll Number : xxxxx
Program : BBA

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Acknowledgement
This project is an outcome of the genuine support of many well wishers, friends and it is
because of the cooperation that I received from various ends, that this report has
attained the shape that it deserves.
With my sincere regards, I wish to acknowledge and gratitude to the TRADE
FINANCE department of KOTAK MAHINDRA BANK LTD, NEHRU PLACE for
granting permission and cooperation to conduct and study on “Analysis of
Discrepancies(in trade transaction) in KOTAK”.
I am thankful to the project guide, and trade cell for their guidance and their counselling
due which I was able to accomplish this project.
I would specially like to show my gratitude
My project has been influenced by number of standards and popular text books. I
express my gratitude to the respective author.
XYZ
Roll Number : xxxxxx
Program : BBA

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Table of contents
CONTENTS PAGE NO.
 Introduction............................................................................06
 Company Profile.....................................................................06
 Incorporation and history,
vision.....................................................................................07
 Description of
business..................................................................................08
 Introduction............................................................................09
 Organisation chart .................................................................10
 Objective of study and How is Kotak Mahindra
organised ...............................................................................11
 Research methodology...........................................................xx
 Data analysis and interpretation.............................................xx
 Findings..................................................................................xx
 Recommendations..................................................................xx
 Conclusion..............................................................................xx
 Limitations..............................................................................xx
 Bibliography...........................................................................xx
 Annexure................................................................................xx

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What is the discrepancythat arise in banking
A discrepancy arises when documents presented under governing laws ( RBI,
DGFT,FTP,IT) do notconfirm to the terms ; generally, an error, contradiction or
omission related to the documents constitutes the discrepancy. Thebank refuses
to pay againstthe documents unless the applicant agrees to amend the
documents or otherwisewaiveobjections to payment under the documents
submitted.
Company profile:
Kotak Mahindra Bank is an Indian private sector bank headquartered
in Mumbai, Maharashtra, India. In February 2003, Reserve Bank of India (RBI)
gave the license to Kotak Mahindra Finance Ltd., the group's flagship company, to
carry on banking business.
Itoffers a wide rangeof banking products and financial services for corporate and
retail customers through a variety of delivery channels and specialized
subsidiaries in the areas of personal finance, investment banking, life insurance,
and wealth management.
Kotak Mahindra Bank has a network of 1,369 branches across 689 locations and
2,163 ATMs in the country (as of 31 March, 2017).In 2016, it was the fourth
largest private bank in India by market capitalization.
Incorporation and History:
In 1985 by Uday Kotak established what an Indian financial services conglomerate
became. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's
flagship company, received a banking license from the Reserve Bank of India (RBI).
With this, KMFL became the first non-banking finance company in India to be
converted into a bank – Kotak Mahindra Bank Limited (KMBL).
In a study by Brand Finance Banking 500, published in February 2014 by the
Banker magazine (from The Financial Times Stable), KMBL was ranked 245th

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among the world's top 500 banks with brand valuation of around half a billion
dollars ($481 million) and brand rating of AA+ and ING Vysya bank merged with
Kotak in year 2015.
In 2014, Kotak Bank acquired ING Vysya Bank in a deal valued at ₹15,000
crore (US$2.3 billion). With the merger, total employment will jump to almost
40,000, and the count of branches reached 1261.Post the merger, ING Group,
which controlled ING Vysya Bank, will own a 7% share in Kotak Mahindra Bank.
KMBL became 4th
largest Private Bank in India after acquiring ING
Vysaya Bank
Vision:
To be the most trusted Global Indian Financial Services brand and the most
preferred financial services employer with focus on creating value.

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Description of business
Working Capital is the life-blood of any business. All businesses require optimal
cash flows to surviveon a regular basis. Working Capital is also required to further
sustain a firm’s growth, improve business operations and stay ahead of
competition. At Kotak Working Capital division, we assist businesses financially
with different types of working capital finance in the form of various fund and
non-fund based products. Fund based working capital is where funds are made
available to the business to address their immediate liquidity needs. Non Fund
Based Working Capital involves no outlay of funds (i.e. transaction of funds is not
involved). Assurance is given by the bank; wherein if the principal party defaults,
the bank is liable to pay to the beneficiary. Banks earn Commission through this
and it is a Contingent Liability for the bank.
Products offered by Kotak Mahindra Bank:
 Banking
 Life insurance
 Mutual fund
 Car finance
 Securities
 Institutional equities
 Investment banking
 Kotak Mahindra international
 Kotak private equity
 Kotak realty

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INTRODUCTION
Trade finance signifies financing for trade; it concerns both domestic and
international trade transactions. A trade transaction requires a seller of goods and
services as well as a buyer. Various intermediaries such as banks and financial
institutions can facilitate these transactions by financing the trade.
While a seller (or exporter) can require the purchaser (an importer) to prepay for
goods shipped, the purchaser (importer) may wish to reduce risk by requiring the
seller to document the goods that have been shipped. Banks may assist by
providing various forms of different solution.
For example, the importer's bank may provide a letter of credit to the exporter
(or the exporter's bank) providing for payment upon presentation of certain
documents, such as a bill of lading. The exporter's bank may make a loan (by
advancing funds) to the exporter on the basis of the export contract.
Other forms of trade finance can include Documentary Collection, Trade Credit
Insurance, Fine trading, Factoring or forfaiting. Some Forms are specifically
designed to supplement traditional financing.
Secure trade finance depends on verifiable and secure tracking of physical risks
and events in the chain between exporter and importer. The advent of new
information and communication technologies allows the development of risk
mitigation models which have developed into advance finance models. This
allows very low risk of advance payment given to the Exporter, while preserving
the Importer's normal payment credit terms and without burdening the
importer's balance sheet. As trade transactions become more flexible and
increase in volume, demand for these technologies has grown

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Organistion chart:
Executive ViceChairman,ManagingDirector
Group Head,SupportServices- (COOHead)
Senior Executive, Vice President
Team Leader
Associate vice president
Executive Vice President, WBG operation- Trade and finance
operations
Vice President, WBG
Operations –customer
service desk (CSD)
(trade finance)
Vice president, WBG
Operations –customer service
desk (CSD)
Chief Manager
NORTH EAST
Team Leader
Team Leader
Delhi
region

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OBJECTIVE OF STUDY
1) The main aim is to analyzethe discrepancies that occur in trade
finance/services documentation.
2) To understand the working of trade finance
3) To find out the discrepancies that arisein trade transactions
4) How to resolve the discrepancies
5) To know the competitors of kotak Mahindra bank ltd.
6) The findings and conclusions fromthe project work

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HOW IS KOTAK MAHINDRA BANK(KMBL) ORGANIZED?
KMBL offers a very wide range of products and services targeted at retail
customers, delivered through a state of the art technology platform. In addition
to branch banking, convenience banking facilities offered by the Bank include
telephone banking, internet banking, mobile banking, direct pay services,
payment gateway for online shopping, a global debit card, a prepaid spending
card and facility to transfer of funds to all Visa debit and credit cards in India.
KMB has 5 broad business segments:

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1) VENTURE FUND MANAGEMENT
The bank has co- sponsored Kotak SEAF India fund which has been set up as
a trust registered with SEBI as a Trust registered with SEBI as a venture
capital fund . india growth fund (the fund) was set up a unit scheme of
kotak SEAF India fund. India growth fund has commitments of Rs.707 crore,
from domestic as well As international investors. The fund continues to be
in an active investment mode and as at march 31,2007, had made
investments in 10 companies. These investments are in 10 companies.
These investments are in high growth sectors of home retail, logistics,
home textiles, airline and light engineering, life sciences and software and
information technology.
2) CORPORATE BANKING (including SME’S)
Corporate banking provides a broad range of financial services to domestic
and international corporations, financial institutions and government
entities. The bank’s services include working capital, trade services ,
transaction banking, money market and foreign exchange services offered
to corporates and small and medium enterprises(SMEs). KMB offers a
variety of products from plain vanilla debt issuance to asset backed
securities (ABS), mortgage backed securities (MBS), structured products
and loan syndication
3) TREASURY AND INVESTMENTS
Treasury operations refer to the use of surplus capital in form of call-
money, RBI auctions, G-sec yields and so on. The bank treasury focuses on
garnering client flows from derivatives and foreign exchange remittances.
Bullion desk and custodial services are another two areas of revenue.
4) LENDING
This includes all the advances and lending operations for commercial
vehicles and construction equipmements,personal loans, home loans,
corporate banking and other lending. As of March 31,2017 the total
advances were Rs. 10,924.07 crore
5) RETAIL LIABILITIES
This refers to the wide range of products and services targeted at retail
customers and offered through branch operations (105 branches as of

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March 31,2007) and other direct banking channels such as telephone
banking, internet banking, mobile banking , direct pay services, payment
gateway for online shopping . The product range also includes Global Debit
Card and Visa Money transfer.
DIFFERENTPRODUCTSOFFEREDBY BANK
ADVANCEPAYMENT LC ADVISING
DIRECTPAYMENT EXPORT BILL INTHE LC
COLLECTION EXPORT BILL COLLECTION
LETTER OF CREDIT GR RELEASE
GR WAIVER
PACKAGING CREDIT
EXPORT BILL DISCOUNTING
IMPORTS EXPORTS

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TRADE TRANSACTION
Any trade transaction can be broadly broken down into three categories :
1) Movement of good
2) Movement of document
3) Movement of fund
Risks involved in international transactions:
In any business transition, there are risks. However, theserisks areenlarged when
dealing internationally. Added to the commercial risk presentin a domestic
transaction are foreign exchange risks as well as company risks.
Country risk
• Political stability
• Economic environment
• Legal infrastructure
• Foreign exchange restriction
Foreign exchange risk
• Foreign currency volatility
Commercial risks
• Reliability of information
• Trade dispute
Keeping these risks in mind, elaborate mechanisms and international trade
instruments havebeen developed over a period of time. These instruments are
designed to minimize risk for each of parties involved. Depending upon the level

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of trustbetween various parties involved. Depending upon the level of trust
between various parties and the international reputation of each of the parties,
different modes of business areadopted.
MODE OF INTERNATIONALTRADE
There are 3 major recognized ways of effecting payment in the international
trade:
1) Payment transaction
a. Advanced payment
b. Open account
2) Bill of collection
3) Documentary credit
WHAT IS IMPORT ?
An import is a good brought into a jurisdiction, especially across a national
border, from an external source. The party bringing in the good is called
an importer. An import in the receiving country is an export from the sending
country. Importation and exportation are the defining financial
transactions of international trade.
In international trade, the importation and exportation of goods are limited
by import quotas and mandates from the customs authority. The importing and
exporting jurisdictions may impose a tariff (tax) on the goods. In addition, the
importation and exportation of goods are subject to trade agreements between
the importing and exporting jurisdictions.

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PAYMENT TRANSACTION
Clean Payments areto characterized by trust, either the exporter sends the goods
and trusts the importer to pay once the goods have been received, or the
exporter sends the goods and trusts the importer to pay once the goods have
been received, or the importer trusts the exporter to send the goods for payment
is effected. In this case of clear payment transaction, all shipping documents,
including title documents are handled directly by the trading parties. The role of
banks is limited to clearing funds as required.
HOW IT WORKS
TherearetwotypesofCleanPayment:
 PAYMENT IN ADVANCE/ADVANCE PAYMENT
The importer sends payment directly to the exporter and waits for the exporter to
send the goods and documents. They are usually adopted when the trading
parties do not yet have a long term relationship. This mode of transaction is
demanded by the exporter/ seller when the selling party is a well- known and
reputed company in its field. Thus the importer has a reasonable amount of trust
on the exporter by the virtue of the exporter’s reputation.

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PROCESS FLOW OF ADVANCE PAYMENT TRANSACTION
TRADEDOCUMENTS REQUIRED UNDER ADVANCEPAYMENT
* Request Letter with Debit Authority.
* FEMA Declaration.
* KYC Report (one time submission)
* Copy of IEC(Importer Exporter Code) Certificate (Onetime submission).
* PurchaseOrder ( accepted by both the parties )/ Performa Invoicewith
Advance paymentterms.
* Paymentinstruction details viz beneficiary Bank, account no. and
intermediary bank Etc.
* FormA1 duly filled and signed by the authorized signatories for
paymentexceeding USD 5000.00
EXPORTER’S BANK IMPORTER’S BANK
TRANSFER OF FUNDS
IMPORTEREXPORTER
DIRECT EXCHANGE
OF DOCUMENTS
INLAND MOVEMENT
OF GOODS
INLAND MOVEMENT
OF GOODS
EXPORTER COUNTRY
CUSTOMER/REGULATORY
CLEARANCE
IMPORTER COUNTRY
CUSTOMER/REGULATORY
CLEARANCE
23
5 1
4

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* Bank Guarantee fromExporter’s bank if advance amount exceeds USD
5.00 mio or equivalent
* Undertaking for submission of Bill of Entry (BOE) within 90 days from
the date of paymentfor non-capitalgoods / 3 years in case of capital
goods; or in case of non-imports arranging for repatriation of money
back into India.
* In casethe goods imported are in negative list of Importin India,Original
valid License for Importof Negative list item. Note: Original'FOR
EXCHANGE CONTROL PURPOSES'of the license be called for and
special conditions, if any, attached to such licenses should be adhered
to.
TYPES OF DISCREPANCIES THAT ARISE UNDER ADVANCE PAYMENT :
The client does not mention fromwhich port the goods is loading or discharged
The amount that is to be remitted does not match with that written in the invoice
The value date might be wrong
The remitter's or beneficiary's name or
address is mentioned wrong
The EEFC No. might not be mentioned in the requestletter
The currentaccount number is wrong

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 OPENACCOUNT
The exporter ships the goods and the documents directly to the importer
and waits for the importer to send the payment. This type of transaction
symbolizes a long – term regular relationship between the two parties. A
mutual level of trustbetween the two parties ensures that an open-
account systemis carried on smoothly. Itis to be noted that as long as the
exporter can trustthe importer to make his payments on time, an open
account transaction is the simplest mode of doing long term business.
PROCESS FLOW OF DIRECT PAYMENT TRANSACTION
EXPORTER’SBANK IMPORTER’S BANK
EXPORTER DIRECT EXCHANGE
OF DOCUMENTS
IMPORTER
TRANSFER OF FUNDS
INLAND MOVEMENT
OF GOODS
INLAND MOVEMENT
OF GOODS
INLAND MOVEMENT
OF GOODS
EXPORTER COUNTRY
CUSTOMER/REGULATORY
CLEARANCE
IMPORTER COUNTRY
CUSTOMER/REGULATORY
CLEARANCE
2
3
1
45

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DOCUMENTS REQUIRED FOR DIRECTPAYMENT
* Request Letter with Debit Authority
* FEMA Declaration
* Copy of IEC(Importer Exporter Code) Certificate (Onetime
Submission)
* KYC Report (Onetime )
* Copy of Invoice
* Copy of TransportDocument(Bill of lading/ Airway Bill/ Courier
receipt )
* Exchange controlcopy of Bill of Entry / CA certificate for
download of softwarethrough internet
* Paymentinstruction details viz beneficiary Bank, account no.
and intermediary bank etc
* FormA1 duly filled and signed by the authorized signatories
along with OGL Declaration.
DOCUMENTARYCOLLECTION
A documentary collection is a process, in which the seller instructs his bank to
forward documents related to the export of goods to the buyer's bank with a
request to present these documents to the buyer for payment, indicating when
and on what conditions these documents can be released to the buyer.
The buyer may obtain possession of goods and clear them through customs, if the
buyer has the shipping documents (original bill of lading, certificate of origin,
etc.). The documents, however, are only released to the buyer after payment has
been made ("Documents against Payment") or payment undertaking has been
given - the buyer has accepted a bill of exchange issued by the seller and payable
at a certain date in the future (maturity date) ("Documents against Acceptance").
Documentary Collections facilitate import/export operations. They do not provide
the samelevel of security as Letters of Credit, but, as a result, the costs are lower.
Unlike the Letters of Credit, for a Documentary Collection the bank acts as a
channel for the documents but does not issue any payment covenants (does not
guarantee payment). The bank that has received a documentary collection
may debit the buyer's accountand make paymentonly if authorized by the buyer.

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Possibilities and advantages:
Make international trade operations more flexible, Use Documentary Collection in
cases when the seller does not want to deliver goods to the buyer on "open
account" basis, but due to a long-term stable business relationship between the
parties there is no need for security provided by a Letter of Credit or payment
guarantee, Documentary collection is suitable to the seller: if the seller has no
doubts about the buyer's ability to meet its payment obligations, if the political
and economic situation in the buyer's country is stable, if there are no foreign
exchange restrictions in the seller's country; Documentary collection is convenient
for the buyer because: there is no need for an advance payment; payment for
goods can be made when shipping documents have been received, in cases of
documents released against acceptance the buyer has the possibility to sell the
goods first and afterwards make payment to the seller. Documentary Collection
assures the seller that the shipping documents will be released to the buyer only
upon payment or acceptance of a Bill of Exchange
FLOW CHARTDEPICTING WHATIS COLLECTION:
DOCUMENTSEXPORTER’S
BANK
IMPORTER’S
BANK

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TYPES OF DISCREPANCIES UNDERCOLLECTION:
Number of invoices mentioned is not present (eg 3 invoices in totalwritten but onlyshipping
bill is not eligible (eg- printing issues ,lettersmight not be visible ,case is being cancelled )
name of the party is mentioned incorrect
tenure is not mentioned
A usance BOE is mentioned as a sight BOE

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INTER BANK COMUNICATION
The inter- bank communication and transaction in documentary credit take place
through SWIFT(society for worldwideinter-bank financialtelecommunication)
network. SWIFTis an industry owned cooperative supplying securemessaging
services and interface softwareto over 7000 financialinstitution in 196 countries.
One cannotwrite SWIFTinstructions thatdo not work with the preset messages
and expect the sending bank to accept them, or the receiving bank to respond
SWIFT CODE/BIC
• A SWIFTcodeis an international bank code that identifies particular banks
worldwide. It’s also known as a Bank Identifier Code (BIC). Banks uses
SWIFTcodes to do all kind of financial telecommunication among each
other along with transfer of funds.
• A SWIFTcodeconsists of 8 or 11 characters.
• Structuralformation of Swift code
KOTAK MAHINDRA BANK
KKBK IN BB xxx

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LETTER OF CREDIT
1) 2)
(Routing of LC)After a contract is (Advice the LC)Seller consigns
concluded between a buyer and a seller, the goods to a carrier in
the buyer's bank supplies a exchange for a bill of lading.
letter of credit to the seller

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3) 4)
The Bill of Lading is provided Buyer provides the bill of
by the seller to the bank and lading to carrier and takes
then further dispatched to delivery of the goods.
the buyer’s bank and
released to the buyer.
FLOWCHARTDEPICTINGWORKINGOFLETTEROFCREDIT

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LETTER OF CREDIT
A letter of credit is a method of payment that is an important part of international
trade. They are particularly useful where the buyer and seller may not know each
other personally and areseparated by distance, differing laws in each country and
different trading customs. It is generally considered that Letters of Credit offer a
good balance of security between the buyer and the seller, because both the
buyer and seller rely upon the security of banks and the banking system to ensure
that payment is received and goods are provided. In a Letter of Credit transaction
the goods are consigned to the order of the issuing bank, meaning that the bank
will not release control of the goods until the buyer has either paid or undertaken
to pay the bank for the documents.
 Import/export—the same credit can be termed an import or export
LC.
depending on whoseperspectiveis considered. For the importer it is
termed an ImportLC and for the exporter of goods, an Export LC.
 Revocable — The buyer and the issuing bank are able to manipulate the LC or
make corrections withoutinforming or getting permissions fromthe seller.
According to UCP 600, all LCs are irrevocable, hence this type of LC is obsolete.
 Irrevocable—Any changes (amendment) or cancellation of the LC (except it is
expired) is done by the applicant through the issuing bank. Itmustbe
authenticated and approved by the beneficiary.
 Confirmed — An LC is said to be confirmed when a second bank adds its
confirmation (or guarantee) to honor a complying presentation at the request
or authorization of the issuing bank.
 Unconfirmed — This type does not acquirethe other bank's confirmation.
 Restricted — Only one advising bank can purchasea bill of exchange from the
seller in the case of a restricted LC.
 Unrestricted — The confirmation bank is not specified, which means that the
exporter can show the bill of exchange to any bank and receive a payment on
an unrestricted LC.
 Transferrable—The exporter has the rightto make the credit available to one
or moresubsequentbeneficiaries. Credits are made transferablewhen the
original beneficiary is a middleman and does not supply the merchandise, but

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procures goods fromsuppliers and arranges them to be sent to the buyer and
does not wantthe buyer and supplier know each other.
DOCUMENTS REQUIRED UNDER LETTER OF CREDIT
 Import Letter of Credit
LC application Form
General Undertaking / Indemnity on Stamp Paper.
Recommended Board Resolution (for Companies) / Partnership Deed (for
Partnership Firms)
OGL cum FEMA declaration
IE code (one time requirement)
Purchase order / Performa invoice
Insurance copy only on C&F/FOB basis
KYC report
Annexure to the LC (Mentioning additional conditions to be incorporated in the LC if
any).
 Export Bill under Collection / Letter of Credit
Request Letter & FEMA declaration
KYC report (One time requirement)
Copy of IEC (Importer Exporter) code
SDF and Shipping Bill ( duplicate original Exchange Control copy)/ Bill of Export/
Softex Form/ Export Declaration Form . ( GR / PP form for export of goods declared
to custom till 30th Sep 2013)
NOC from respective AD if SB/EDF/Softex has been declared in the name of other
Authorised Dealer.
Commercial Invoice
Original transport documents - Bill of Lading or Airway Bill
Bill of Exchange
Original L/C including amendments if any in case of documents under L/C and
Relevant documents as per LC.
Clarification letter for delay in submission of documents beyond 21 days from date
Of shipment.
Any other document as per terms and conditions between importer and exporter or
As may be required as per Bank’s process and RBI guidelines from time to time.
WHATIS EXPORTS?
An export is a function of international trade whereby goods produced in one country are
shipped to another country for future sale or trade. The sale of such goods adds to the
producing nation's gross output. If used for trade, exports are exchanged for other products or

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services in other countries.
Products under exports :
1) LC(Letterof Credit) advising
2) Export Bill in the LC
TYPES OF DISCREPANCIES
3) Export Bill Collection
Export bill collection means sending of export bills to overseas buyer
through his bank to collect the payment under export bills.
An Export Bill forcollection is a process whereby an Exporter can rely on
international banking channels to control document movement and release.
Under export collections, the customer can instruct the "Remitting Bank" to
send commercial documents (such as invoices, Bills of lading or Airway Bills) or
financial documents (such as Bills of Exchange) on a collection basis to a
Collecting Bank / Presenting Bank in the customer’s buyer's country. Upon
The LC endorsement is missing in the bill
shipping bill is not eligible (eg- printing issues ,lettersmight not be visible
,case is being cancelled )
LC is expired( i.e. it is submitted after due date )
Insufficient Balancein the client's account
LC amendment is missing

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receipt of such documents, the Presenting Bank will then release documents
against payment (if the collectioninstruction calls for documents against
payment )or against acceptance (if the collectioninstructions call for
documents against acceptance ) from the customer’s buyer, and strictly in
accordance with instructions fromremitting bank
TYPES OF DISCREPANCIES THAT ARISE UNDER EXPORT BILL COLLECTION :
4) GR release
GR (Guaranteed Remittance ) after the introduction of electronic data
interchange facility, the manual(hard copy) GR procedures have been
discontinued as a copyof GR is directly transmitted from customs
department to reserve bank. However, GR procedures inexport are
The NOC (No Objection Certificate) is not raised
BOE (Bill of Exchange ) does not have the right tenure mentioned or the
terms are different
There is insufficient balance in the client's bank account
Legible copy of Shpping Bill is not given
Remarks in BTS ( Bank Top Sheet) is basically where the bank mentions all the details
of the documents submitted by the cllient

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continued at a customs location where in no electronic filing
arrangements are available
GR release is basically a proof of the exports wherein the documents
required are:
 Requestletter
 Invoice
 Transport documentation
 Shipping bill
TYPES OF DISCREPANCIES INGRRELEASE
5) GR waiver
TYPES OF DISCREPANCIES INGRWAIVER
6) PC ( Packaging Credit )
Itis a loan or advancegranted by a bank to an exporter to assisthim in buying,
packing, and shipping of the goods
The buyer's remittance does not match(i.e. the product is buyed by
someonelse and the amount is paid by the other party
XAR has insufficentbalance
Transportdocument date is not mentioned
Requiredformatof the GR is notsubmitted

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Advances of the packaging credit in the:
 Loan
 Over drafts
 Case credit
Any loan given to an exporter for the manufacturer, processing, purchasing or
packaging of goods meant for export against a firm order or letter of credit
qualifies for packing credit guarantee. Pre- shipmentadvances given by banks to
parties who enter into contracts for export of services or for construction works
abroad to meet preliminary expenses in connection with such contracts are also
eligible for cover under the guarantee. The requirement of lodgement of letter of
credit or export order for granting packaging credit advances is waived if the bank
grants such advances in accordancewith the instructions of the Reserve bank of
India in that respect.
7) Export Bill Discounting
Export Bill discounting is commonly used term in international trade
As you know, financeplays a major role in business. Especially in exports,
the volumeof finance requirement is higher than domestic sales because of
its volume of business.
Let the business contractwith overseas buyer be on credit basis, the
exporter needs finance immediately up on shipment of his exported goods.
Here he approaches his banker to finance againsthis exported goods by
producing documentary proof of export and avail finance. Export bill
discounting is common in InternationalTrade.
TYPES OF DISCREPANCIES THAT ARISE UNDER EXPORT BILL DISCOUNTING

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TENURE IS MENTIONED WRONG
MARGIN MIGHT BE OF 15% BUT CLIENT ONLY GIVES 10%
PRICING
COMISSION IS NOT MODIFIED
LIMIT GIVEN IS EXCEEDED

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