Banking Facilities for Exporters and Importers: Financial and Institutional Support Mechanisms
Exporters and importers are extended a wide array of financial and logistical facilities by banks and other supporting institutions. These services are designed to facilitate smooth international trade operations, enhance liquidity, and promote competitiveness in the global market. Key facilities include export and import financing, letters of credit, guarantees, foreign currency accounts, and a variety…
Read article Packing Credit facility in banks explained
Banks extend export credits to their customers in two stages viz. (i) pre-shipment stage and (ii) post-shipment stage. The first stage of the loan is the pre-shipment stage where the loan is released for procuring, Packing processing (where necessary), manufacturing, and finally for packing of goods. The loans and advances so provided by the banks,…
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Export and Import of Goods and Services under FEMA: Key Provisions of the 2024 Draft Regulations
On July 2, 2024, the Reserve Bank of India (RBI) proposed a set of streamlined regulations governing the export and import of goods and services, with the objective of enhancing the ease of doing business—particularly for small exporters and importers—and enabling authorised banks to provide more efficient foreign exchange services. These proposals were introduced as…
Read article A guide on export procedures in India
Export documentation and procedures upon prevalent statutes/ amendments and country-specific requirements related to exporting from India are explained in this post. Definition of export: Export means selling goods or services by a person or a company of one country to a buyer in another country. The supplies made to IBRD/IDA/ADB aided projects are termed as…
Read article How to liquidate packing credit loan without post-shipment finance
The loans and advances granted to an exporter for procuring materials, processing, manufacturing or packing of goods at the pre-shipment stage are called Packing Credit (PC) facility. These types of facilities are also available for the working capital requirement to an exporter for the rendering of services to the overseas buyer. The packing credit loan…
Post shipment finance to exporters without packing credit facility
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…
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