Post-shipment finance , Marketing Research

Assignment Help:

 

POST-SHIPMENT FINANCE : It may be defined as "any loan or advance granted or any other credit provided by a bank to an exporter of goods from India from the date of extending the credit after shipment of goods to the date of realisation of export proceeds. It includes any loan or advance granted to an exporter on consideration of or on the security of, any Duty Drawback or any cash receivables by way of incentive from the Marketing Development Fund or any other relevant While granting post-shipment finance, banks are governed by the guidelines issued by the RBI, the rules of the Foreign Exchange Dealers Association of India (FEDAI). The Trade Control and Exchange Control Regulations and the International Conventions and Codes of the International chambers of Commerce. The exporters are required to obtain credit limits suitable to their needs. The quantum of credit depends on export sales and receivables.

Post-shipment finance is granted under various methods. The exporter may choose the type of facility as per his requirement. The Banks scrutinise the documents submitted for compliance of exchange control provisions like:

i) the documents are drawn in permitted currencies and payment receivable as permitted method of payment;

ii) the relevant GRPP form duly certified by the customs is submitted and particulars as stated in the GWPP form are consistent with the documents tendered as well as the sale contract firm order etc./letter of credit;

iii) the documents are submitted within the time limit stipulated and in case of delay suitable explanation is made;

iv) the period of usually is in consonance with the time limit prescribed for realisation of export proceeds.

Let us now discuss various types of post-shipment finance.

 

 


Related Discussions:- Post-shipment finance

Customs clearance formalities , CUSTOMS CLEARANCE FORMALITIES : 'Under Sec...

CUSTOMS CLEARANCE FORMALITIES : 'Under Section 40 of the Indian Customs Act, an overseas carrier cannot permit loading of goods without permission from the customs authorities. Th

Institutional framework , INSTITUTIONAL FRAMEWORK : Institutional framewor...

INSTITUTIONAL FRAMEWORK : Institutional framework for providing finance comprises Reserve Bank of India, Commercial Banks, Export Import Bank of India and Export Credit and Guaran

Duty entitlement pass book, Duty Entitlement Pass Book : Under the Duty En...

Duty Entitlement Pass Book : Under the Duty Entitlement Pass Book scheme, an exporter shall be eligible to claim credit as a specified percentage of FOB value made in freely conve

Name five types of general insurance, ? OVERSEAS INSURANCE ? LIVE STOCK ...

? OVERSEAS INSURANCE ? LIVE STOCK INSURANCE ? GLASS INSURANCE ? FIDELITY INSURANCE ? KEY MAN INSURANCE

Small exporter''s policy, SMALL EXPORTER'S POLICY : The small exporter's...

SMALL EXPORTER'S POLICY : The small exporter's policy is basically the standard policy. It incorporates certain improvement in terms of cover, in order to encourage small export

Business law, what are the duties and rights or obligations of the leasor a...

what are the duties and rights or obligations of the leasor and lessee and case studies to conflicts on either of the two and how they have been resolved

Need for cargo insurance , NEED FOR CARGO INSURANCE : Why should the goods...

NEED FOR CARGO INSURANCE : Why should the goods be insured? There are two reasons for securing the insurance cover. The first reason concerns the legal dimension of limited liabil

Central excise formalities, CENTRAL EXCISE FORMALITIES : It is a common pr...

CENTRAL EXCISE FORMALITIES : It is a common practice all over the world that the exports are not to bear the burden of indirect taxes. Export goods are either exempted from such t

Market Segments and Sizes, Is it possible to share some insight on various ...

Is it possible to share some insight on various market segments in Indian mobile phone industry and their respective sizes

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd