Banks in India offer various credit facilities to exporters both at pre-shipment stage (Packing Credit) and Post-shipment stage viz. Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against the export of Goods for Exhibition and Sale.  The above facilities are available to the exporters both in Foreign Currency (FCY) and Indian Rupees.

The post-shipment credits are called so because the credit facilities extended to an exporter ‘after shipment’ of goods or rendering of services. Normally, proceeds of post shipment finance shall be used for liquidating the related outstanding in packing credit account. However, in the event of the exporter has not availed packing credit but he approaches his bank for post-shipment credit, the bank may consider the request of an exporter for post shipment credit. In such cases, bankers need to ensure that some other bank has not granted packing credit against the bills offered to them for the credit facility. For any reason, if a bank purchases the bills related to packing credit granted by another bank, the proceeds of such purchases shall be remitted to the bank which has granted the packing credit loan/advance to that exporter. Another important point to be remembered is that whenever Packing Credit is outstanding, the related export bill cannot be sent on collection basis.