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5 A BFM Facilities for experters and importers
What is a Letter of Credit (LC) in the context of international trade finance?
A Letter of Credit is a written undertaking by an importer's bank (issuing bank) to pay the exporter a specified amount, provided the exporter presents documents that strictly comply with the terms and conditions of the LC.
What is an Export Packing Credit (EPC) and its purpose?
Short-term pre-shipment loan to finance export order production.
What is the difference between a Sight LC and a Usance LC?
Under a Sight LC, payment is made immediately upon presentation of compliant documents, whereas under a Usance (deferred payment) LC, payment is made at a future date — typically 30, 60, 90, or 180 days after the date of shipment or bill of lading.
What is the maximum period for Post-shipment Credit in India?
Generally up to 180 days from the date of shipment.
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