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Facilities for exporters and importers
What is a Pre-Shipment Credit (Packing Credit) in the context of export finance?
Pre-Shipment Credit is short-term finance extended by banks to exporters before shipment of goods, enabling them to procure raw materials, process, pack, and ship the export order. It is governed by RBI guidelines and is typically provided at concessional interest rates.
What is the Export Credit Guarantee Corporation (ECGC) policy for pre-shipment finance?
Covers banks against losses on packing credit advances to exporters.
What is the maximum period for which Packing Credit can be extended under RBI norms?
Packing Credit is generally allowed for a maximum period of 360 days from the date of first disbursement, though banks may extend it further with RBI permission in exceptional cases. The normal running period is up to 180 days.
What is the purpose of the FEMA declaration form PP for exports?
Declares export proceeds will be repatriated within prescribed time limits.
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