GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

documents Pre shipment and post Shipment

Customs - Started By: - Nilesh Kalsariya - Dated:- 15-2-2016 Last Replied Date:- 14-4-2016 - Dear Sir,Have a nice day,Please specify Documents List of Pre-shipment and post-shipment for Expot - Import,What is the meaning of Pre Export and Post Export?Best Regards,Kalsariya Nilesh - Reply By KASTURI SETHI - The Reply = Sh.Nilesh Kalsariya Ji, Keeping in view of your higher qualification and designation in the company, these are very basic and simple terms for you. However, answer to all your quer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

without the element of harshness in the expression/language. - Reply By CS SANJAY MALHOTRA - The Reply = Respected Sh. Kasturi ji,Well presented. You have placed the facts similar to what I have planned to share.This is the platform for enriching / enhancing knowledge level to the core issues.Kind of participation which prevails at this platform and the legal opinion, I have seen the law makers to re-think what they meant while writing law and what actually the same is????? and above all at ZERO .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al manner. These expressions have emboldened me.Thus, in other words my stand stands ratified. - Reply By Nilesh Kalsariya - The Reply = SH.KASTURI SETHI JI,Thanks for your Valuable reply,I know that we will get information from various website,but I don't get proper specification about Pre Export and Post Export,if possible then please solve my query about Pre export and Post Export,ThanksKalsariya Nilesh - Reply By YAGAY AND SUN - The Reply = Dear Nilesh,Pre Shipment Finance is issued by a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts.Preshipment finance is extended in the following forms : Packing Credit in Indian Rupee Packing Credit in Foreign Currency (PCFC)Requirment for Getting Packing CreditThis facility is provided to an exporter who satisfies the following criteria A ten digit importerexporter code number allotted by DGFT. Exporter should not be in the caution list of RBI. If the goods to be exported are not under OGL (Open General Licence), the exporter should have the required license /quota permit to export the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds to be exported fall under the restricted or canalized category. If the item falls under quota system, proper quota allotment proof needs to be submitted.The confirmed order received from the overseas buyer should reveal the information about the full name and address of the overseas buyer, description quantity and value of goods (FOB or CIF), destination port and the last date of payment.EligibilityPre shipment credit is only issued to that exporter who has the export order in his own name. H .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ainst the LC or an expected order. The only guideline principle is the concept of NeedBased Finance. Banks determine the percentage of margin, depending on factors such as: The nature of Order. The nature of the commodity. The capability of exporter to bring in the requisite contribution.Different Stages of Pre Shipment FinanceAppraisal and Sanction of Limits1. Before making any an allowance for Credit facilities banks need to check the different aspects like product profile, political and econo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er the exporter has the necessary license and quota permit (as mentioned earlier) or not. Whether the country with which the exporter wants to deal is under the list of Restricted Cover Countries(RCC) or not.Disbursement of Packing Credit Advance2. Once the proper sanctioning of the documents is done, bank ensures whether exporter has executed the list of documents mentioned earlier or not. Disbursement is normally allowed when all the documents are properly executed.Sometimes an exporter is not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

/LC or the domestic values of goods, whichever is found to be lower. Normally insurance and freight charged are considered at a later stage, when the goods are ready to be shipped.In this case disbursals are made only in stages and if possible not in cash. The payments are made directly to the supplier by drafts/bankers/cheques.The bank decides the duration of packing credit depending upon the time required by the exporter for processing of goods.The maximum duration of packing credit period is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

= box-sizing: border-box; >Liquidation of Packing Credit Advance4. Packing Credit Advanceneeds be liquidated out of as the export proceeds of the relevant shipment, thereby converting preshipment credit into postshipment credit.This liquidation can also be done by the payment receivable from the Government of India and includes the duty drawback, payment from the Market Development Fund (MDF) of the Central Government or from any other relevant source.In case if the export does not take pl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ers a packing credit as an overdue, if the borrower fails to liquidate the packing credit on the due date. And, if the condition persists then the bank takes the necessary step to recover its dues as per normal recovery procedure.Special CasesPacking Credit to Sub Supplier1. Packing Credit can only be shared on the basis of disclaimer between the Export Order Holder (EOH) and the manufacturer of the goods. This disclaimer is normally issued by the EOH in order to indicate that he is not availing .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r's bank against the inland documents received on the basis of the inland L/C opened by them.The final responsibility of EOH is to export the goods as per guidelines. Any delay in export order can bring EOH to penal provisions that can be issued anytime.The main objective of this method is to cover only the first stage of production cycles, and is not to be extended to cover supplies of raw material etc. Running account facility is not granted to subsuppliers.In case the EOH is a trading hou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ack record of the exporter. In return the exporter needs to produce the letter of credit / firms export order within a given period of time. Preshipment Credit in Foreign Currency (PCFC)3. Authorised dealers are permitted to extend Preshipment Credit in Foreign Currency (PCFC) with an objective of making the credit available to the exporters at internationally competitive price.This is considered as an added advantage under which credit is provided in foreign currency in order to facilitate the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng PCFC facility include the Foreign Currency balances available with the Bank in Exchange, Earner Foreign Currency Account (EEFC), Resident Foreign Currency Accounts RFC(D) and Foreign Currency(NonResident) Accounts.Banks are also permitted to utilize the foreign currency balances available under Escrow account and Exporters Foreign Currency accounts. It ensures that the requirement of funds by the account holders for permissible transactions is met. But the limit prescribed for maintaining max .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

yments will be made in free foreign exchange, are eligible for concessional rate of interest facility both at pre and post supply stages.Packing Credit facilities for Consulting Services5. In case of consultancy services, exports do not involve physical movement of goods out of Indian Customs Territory. In such cases, Preshipment finance can be provided by the bank to allow the exporter to mobilize resources like technical personnel and training them. Advance against Cheque/Drafts received as ad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ready been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds. Exporters don t wait for the importer to deposit the funds.Basic FeaturesThe features of postshipment finance are: Purpose of Finance Postshipment finance is meant to finance export sales receivable after the date of shipment of goods to the date of realization of exports proceeds. In cases of deemed exports, it is extended to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

awn balance, and is usually unsecured in nature. Further, the finance is mostly a funded advance. In few cases, such as financing of project exports, the issue of guarantee (retention money guarantees) is involved and the financing is not funded in nature. Quantum of Finance As a quantum of finance, postshipment finance can be extended up to 100% of the invoice value of goods. In special cases, where the domestic value of the goods increases the value of the exporter order, finance for a price d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

realization of exports proceeds is six months from the date of shipment. Concessive rate of interest is available for a highest period of 180 days, opening from the date of surrender of documents. Usually, the documents need to be submitted within 21days from the date of shipment.Financing For Various Types of Export Buyer's CreditPostshipment finance can be provided for three types of export : Physical exports: Finance is provided to the actual exporter or to the exporter in whose name the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ler shoulders all or part of the interests incurred. Types of Post Shipment FinanceThe post shipment finance can be classified as : Export Bills purchased/discounted. Export Bills negotiated Advance against export bills sent on collection basis. Advance against export on consignment basis Advance against undrawn balance on exports Advance against claims of Duty Drawback.1. Export Bills Purchased/ Discounted.(DP & DA Bills)Export bills (Non L/C Bills) is used in terms of sale contract/ order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xtend the finance against bills under LC. However, this arises two major risk factors for the banks: The risk of nonperformance by the exporter, when he is unable to meet his terms and conditions. In this case, the issuing banks do not honor the letter of credit. The bank also faces the documentary risk where the issuing bank refuses to honour its commitment. So, it is important for the for the negotiating bank, and the lending bank to properly check all the necessary documents before submission .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l.The transit period is from the date of acceptance of the export documents at the banks branch for collection and not from the date of advance.4. Advance Against Export on Consignments BasisBank may choose to finance when the goods are exported on consignment basis at the risk of the exporter for sale and eventual payment of sale proceeds to him by the consignee.However, in this case bank instructs the overseas bank to deliver the document only against trust receipt /undertaking to deliver the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ks do finance against the undrawn balance, if undrawn balance is in conformity with the normal level of balance left undrawn in the particular line of export, subject to a maximum of 10 percent of the export value. An undertaking is also obtained from the exporter that he will, within 6 months from due date of payment or the date of shipment of the goods, whichever is earlier surrender balance proceeds of the shipment. 6. Advance Against Claims of Duty DrawbackDuty Drawback is a type of discount .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xporters lodge their claims, supported by the relevant documents to the relevant government authorities. These claims are processed and eligible amount is disbursed after making sure that the bank is authorized to receive the claim amount directly from the concerned government authorities.Crystallization of Overdue Export BillsExporter foreign exchange is converted into Rupee liability, if the export bill purchase / negotiated /discounted is not realize on due date. This conversion occurs on the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version