TMI BlogExport of Goods - Long Term Export AdvancesX X X X Extracts X X X X X X X X Extracts X X X X ..... des for shipment of goods extending beyond the period of one year from the date of receipt of advance payment. Further, in terms of A.P. (DIR Series) Circular No.81 dated February 21, 2012 AD Category- I banks have been permitted to allow exporters to receive advance payment for export of goods which would take more than one year to manufacture and ship and where the 'export agreement' provides for the same. 2. In view of requests received from exporters, it has been decided to permit AD Category- I banks to allow exporters having a minimum of three years satisfactory track record to receive long term export advance up to a maximum tenor of 10 years to be utilized for execution of long term supply contracts for export of good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e immediately reported to the Trade Division, Foreign Exchange Department, Reserve Bank of India, Central Office, 5th Floor, Amar Building, Mumbai under copy to the concerned Regional Office of the Reserve Bank of India as per the format given in Annex I. 3. In case Authorized Dealer banks are required to issue bank guarantee (BG) / Stand by Letter of Credit (SBLC) for export performance, the following guidelines may also be adhered to: a) Issuance of BG / SBLC, being a non-funded exposure, should be rigorously evaluated as any other credit proposal keeping in view, among others, prudential requirements based on board approved policy. Such facility will be extended only for guaranteeing export performance. b) BG / SBLC may be iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plier from whom long term advance has been availed of: Company review: Nature of business Number of years the party has been dealing with the bank Details of existing facilities with the Bank Export to total domestic sales ratio (last three years average) Details of long term advance: Total amount of contract/orders placed period Total advance to be received Date of receipt of Advance Tenor Rate of Interest, if any Details of BG/SBLC issued, if any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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