Question
L & T Ltd has ordered one scientific equipment from Switzerland for one of their projects in Bangladesh. USD/CHF is quoted at 0.9230/0.9235 (0.9230/35). L
L & T Ltd has ordered one scientific equipment from Switzerland for one of their projects in Bangladesh. USD/CHF is quoted at 0.9230/0.9235 (0.9230/35). L & T will be paying the Swiss seller from its USD account with Citi Bank, Delhi. At which rate this import payment will be taken up?
In the above transaction, the consignment will not land in India. It will directly reach the Bangladesh worksite. This transaction will be treated as:
a. High sea sales
b. Merchanting trade
Explain with reasons the choice you make.
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
