Britain: An official handbook > 1977

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Export Credit
Insurance
Trade Fairs
CONTROLS ON
TRADE AND
PAYMENTS
Import and
Export Control
Import Controls
BRITAIN 1977: AN OFFICIAL HANDBOOK
The Export Credits Guarantee Department (ECGD) provides credit insurance
for more than a third of the country’s export trade and for much of the external
trade of British merchants.
The main risks covered include insolvency or protracted default of the
buyer, governmental action which stops the British exporter receiving payment,
new import restrictions, war, or civil disturbance in the buyer’s country. Cover
may commence from the date of contract or (at lower premiums) from the date
of shipment.
This insurance may be supplemented by unconditional guarantees of repay¬
ment given direct to banks financing the exporter. Alternatively, for contracts
over £250,000, the ECGD will guarantee loans direct to overseas buyers enab¬
ling them to pay on cash terms, or ‘lines of credit’ similarly covering an agreed
buying programme of an overseas country. The banks provide finance against
these guarantees.
Since 1975 the ECGD has offered a measure of cover against high and
unpredictable cost escalation to exporters with capital goods contracts worth
over £2 million which involve a manufacturing period of over two years. Since
the same date it has also been prepared to support the issue of performance
bonds in the commercial market in respect of cash or near-cash contracts
worth over £2 million.
Investment insurance is also provided for new British investment against
expropriation, war damage and restrictions on remittances.
Britain stages many exhibitions and trade fairs and British products are shown
at most of the large international trade fairs throughout the world.
Participation in trade fairs, ‘British weeks’ and store promotions overseas is
a form of export promotion for which the Government provides information
and financial assistance to exporters. In 1973 a British Export Marketing
Centre was opened in Tokyo to provide exhibitions and other marketing
facilities for individual British firms or organisations.
There are now very few restrictions imposed by Britain on the movement of
goods and services.
Under the Import, Export and Customs Powers (Defence) Act 1939 the
Department of Trade is empowered to prohibit or regulate the import or export
of goods. Several other departments have separate powers to control imports
and exports for specific purposes.
In accordance with its international obligations under the GATT and the IMF,
and its European Community membership, Britain has progressively removed
quantitative restrictions from almost all its imports from the market economies.
There has also been a continuing substantial relaxation of quantitative restric¬
tions on imports from centrally planned economies. In 1975 the importation of
gold coins, gold medals and similar articles, minted or made after 1837, was
made subject to individual licensing; the remaining controls include those
recognised internationally on a few goods such as arms, ammunition and
radioactive materials. Controlled goods require a specific import licence and
some are subject to quota restrictions. Some further restrictions or prohibitions
are applied under separate legislation for the protection of health or public
safety, in the interest of conservation, and for other non-economic reasons (for
example, on animals, drugs and explosives). There is also a general import