Page 30 - PowerPoint Presentation

INTERNATIONAL TRADE-CHANGING

LANDSCAPE

I would like to touch upon some of the evolving areas of
the international trade from a finance person’s

perspective.
Net back pricing mechanism:
As per business dictionary, net back is defined as “The
total cost that is connected to bringing crude oil to the

marketplace and the revenues from all the products that
are generated from it. This term only applies to companies
who that are oil suppliers”. CA Abdul Nassar

On a practical aspect, net back pricing mechanism can be applied to
improve operational efficiency, reduce cost and affectively utilize
infrastructure by sharing the same by different oil producing companies.

Oil producing companies can form another venture to export their products
at a net back price without competing each other and creating havoc by
building duplicate infrastructure. However, the legal structure of the
venture should be thoroughly studied and formed taking into account

various antitrust and competition law requirements of various jurisdictions.

Antitrust and Competition Law:
US has its own Antitrust law, European Union has its Competition Law

and in addition each country may have its own competition law. The main
objective of all these laws is to promote competition, prevent unlawful
behaviors like the abuse of dominance, price fixing, market sharing etc

Therefore, it is important to have a well-designed policy and arrangements
within the company to prevent or reduce risk of exposure for such hectic

fine and penalties. The employees should be trained periodically to
improve their awareness on these laws.

Bill of Lading Document- Electronic Version:
BL document is issued by the master of ship or his agent to acknowledge
receipt of cargo for shipment. A bill of Lading must be transferable, and

serves three main functions:

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