Pre Shipment and Post Shipment Credit

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n\paperw11900\paperh16840\pard\sb0\sl-240{\bkmkstart Pg1}{\bkmkend Pg1}\par\pard
\li1463\sb0\sl-299\slmult0\par\pard\li1463\sb0\sl-299\slmult0\par\pard\li1463\sb
0\sl-299\slmult0\par\pard\li1463\sb0\sl-299\slmult0\par\pard\li1463\sb291\sl-299
\slmult0\fi0\tx2194 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf2\f3\fs26 1.
\tab \up0 \expndtw-3\charscalex100 PRE-SHIPMENT EXPORT CREDIT\par\pard\li1463\sb
206\sl-299\slmult0\fi731\tx2925 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf
3\f4\fs26 1.1\tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf5\f6\fs26 Preshipment Credit in Foreign Currency (PCFC)\par\pard\li1463\sb187\sl-276\slmult0\
fi1462\tx3803 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 1.1.1\ta
b \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Definition\par\pard\
qj \li3803\ri928\sb135\sl-280\slmult0 \up0 \expndtw-4\charscalex100 \ul0\nosuper
sub\cf8\f9\fs24 'Pre-shipment'\ul0\nosupersub\cf1\f2\fs24 means any loan or adv
ance granted or any other credit \up0 \expndtw0\charscalex100 provided by a b
ank to an exporter for financing the \ul0\nosupersub\cf8\f9\fs24 purchase
, \up0 \expndtw-5\charscalex100 processing, manufacturing\ul0\nosupersub\cf1\f2\
fs24 or \ul0\nosupersub\cf8\f9\fs24 packing of goods\ul0\nosupersub\cf1\f2\fs24
prior to shipment, on \up0 \expndtw0\charscalex100 the basis of letter of cred
it opened in his favour or in favour of some \up0 \expndtw0\charscalex103 other
person, by an overseas buyer or a confirmed and irrevocable \up0 \expndtw0\chars
calex100 order for the export of goods from India or any other evidence of an \u
p0 \expndtw-5\charscalex100 order for export from India having been placed on th

e exporter or some \up0 \expndtw-3\charscalex100 other person, \ul0\nosupersub\c
f8\f9\fs24 unless lodgement\ul0\nosupersub\cf1\f2\fs24 of export orders or lett
er of credit with \up0 \expndtw-4\charscalex100 the bank \ul0\nosupersub\cf8\f9\
fs24 has been waived\ul0\nosupersub\cf1\f2\fs24 . \par\pard\li2925\sb199\sl-276\
slmult0\fi0\tx3803 \up0 \expndtw-3\charscalex100 1.1.2\tab \up0 \expndtw-3\chars
calex100 \ul0\nosupersub\cf7\f8\fs24 General\par\pard\qj \li3803\ri929\sb126\sl280\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 With a vie
w to making credit available to exporters at internationally \line \up0 \expndtw
0\charscalex101 competitive rates, authorised dealers have been permitted to ext
end \line \up0 \expndtw-4\charscalex100 Pre-shipment Credit in Foreign Curre
ncy \up0 \expndtw0\charscalex102 (PCFC) to exporters for \par\pard\qj \li3803
\ri928\sb0\sl-300\slmult0 \up0 \expndtw0\charscalex103 domestic and imported inp
uts of exported goods at LIBOR/EURO \up0 \expndtw-5\charscalex100 LIBOR/EURIBOR
related rates of interest as detailed below. \par\pard\li2925\sb166\sl-276\slmul
t0\fi0\tx3803 \up0 \expndtw0\charscalex100 1.1.3\tab \up0 \expndtw0\charscalex10
0 \ul0\nosupersub\cf7\f8\fs24 Scheme\par\pard\li2925\sb147\sl-276\slmult0\fi951\
tx4461 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \ex
pndtw0\charscalex100 The scheme is an additional window for providing pre-shipme
nt\par\pard\li2925\sb4\sl-276\slmult0\fi1536 \up0 \expndtw0\charscalex100 credit
to Indian exporters at internationally competitive rates of\par\pard\li2925\sb5
\sl-276\slmult0\fi1536 \up0 \expndtw0\charscalex100 interest. It will be applica
ble to only cash exports.\par\pard\li2925\sb147\sl-276\slmult0\fi951\tx4461 \up0
\expndtw0\charscalex100 (ii)\tab \up0 \expndtw0\charscalex100 The exporter will
have the following two options to avail of\par\pard\li2925\sb4\sl-276\slmult0\f
i1536 \up0 \expndtw0\charscalex100 export finance:\par\pard\ql \li4535\ri927\sb1
12\sl-280\slmult0\tx4973\tx4973\tx4973 \up0 \expndtw-3\charscalex100 (a)\ul0\nos
upersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 to avail of pre-shipment credi
t in rupees and then the post-\line\tab \up0 \expndtw0\charscalex104 shipment
credit either in rupees or discounting/ \line \tab \up0 \expndtw0\char
scalex101 rediscounting of export bills under EBR Scheme \line \tab
\up0 \expndtw-5\charscalex100 mentioned in paragraph 2.2. \par\pard\ql \li4535\r
i928\sb121\sl-280\slmult0\tx4973\tx4973 \up0 \expndtw0\charscalex105 (b)\ul0\nos
upersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 to avail of pre-shipment credi
t in foreign currency and \line\tab \up0 \expndtw0\charscalex103 discount/redisc
ounting of the export bills in foreign \line \tab \up0 \expndtw-5\charscal
ex100 currency under EBR Scheme. \par\pard\li3876\sb161\sl-276\slmult0\fi0\tx453
5 \up0 \expndtw-3\charscalex100 (iii)\tab \up0 \expndtw-3\charscalex100 Choice o
f currency\par\pard\ql \li4535\ri928\sb124\sl-280\slmult0\tx4973\tx4973 \up0 \ex
pndtw0\charscalex105 (a)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24
The facility may be extended in one of the convertible \line\tab \up0 \expndtw
-2\charscalex100 currencies viz. US Dollars, Pound Sterling, Japanese Yen, \line
\tab \up0 \expndtw-2\charscalex100 Euro, etc. \par\pard\ql \li4535\ri927\sb121\
sl-280\slmult0\tx4973\tx4973\tx4973\tx4973\tx4973\tx4973 \up0 \expndtw0\charscal
ex101 (b)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 To enable the
exporters to have operational flexibility, it \line\tab \up0 \expndtw0\charscal
ex103 will be in order for banks to extend PCFC in one \line \tab \up0
\expndtw-4\charscalex100 convertible currency in respect of an export order inv
oiced \line \tab \up0 \expndtw-2\charscalex100 in another convertible currency.
\ul0\nosupersub\cf9\f10\fs24 For example\ul0\nosupersub\cf1\f2\fs24 , an exporte
r \line \tab \up0 \expndtw0\charscalex103 can avail of PCFC in US Dollar against
an export order \line \tab \up0 \expndtw0\charscalex104 invoiced in Euro.
Th
e risk and cost of cross currency \line \tab \up0 \expndtw-5\charscalex100 trans
action will be that of the exporter. \par\pard\ql \li6060\sb0\sl-276\slmult0 \pa
r\pard\ql\li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb52\sl-276\slmult0 \up0
\expndtw-3\charscalex100 1
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}}\par\pard\sect\sectd\fs24\paperw11900\paperh16840\pard\sb0\sl-240{\bkmkstart P
g2}{\bkmkend Pg2}\par\pard\ql \li3876\sb0\sl-280\slmult0 \par\pard\ql\li3876\sb0
\sl-280\slmult0 \par\pard\ql\li3876\sb0\sl-280\slmult0 \par\pard\ql\li3876\sb0\s
l-280\slmult0 \par\pard\ql\li3876\ri929\sb109\sl-280\slmult0\tx4461 \up0 \expndt
w-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (iv)\ul0\nosupersub\cf6\f7\fs24 \
ul0\nosupersub\cf1\f2\fs24 Banks are permitted to extend PCFC for expor
ts to ACU \line\tab \up0 \expndtw-1\charscalex100 countries. \par\pard\ql \li3
876\ri929\sb141\sl-280\slmult0\tx4461\tx4461 \up0 \expndtw-1\charscalex100 (v)\u
l0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The applicable benefit
to the exporters will accrue only after the \line\tab \up0 \expndtw-1\charscalex
100 realisation of the export bills or when the resultant export bills \line \ta
b \up0 \expndtw-1\charscalex100 are rediscounted \u8216?without recourse\u8217?
basis. \par\pard\li2925\sb200\sl-276\slmult0\fi0\tx3803 \up0 \expndtw0\charscale
x101 1.1.4\tab \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf7\f8\fs24 Source o
f Funds for Banks\par\pard\li2925\sb148\sl-276\slmult0\fi951\tx4461 \up0 \expndt
w0\charscalex101 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndtw0\charscalex10
1 The foreign currency balances available with the bank in\par\pard\li29
25\sb4\sl-276\slmult0\fi1536\tx8799 \up0 \expndtw0\charscalex101 Exchange Earn
ers Foreign Currency\tab \up0 \expndtw0\charscalex101 (EEFC) Accounts,\par
\pard\li2925\sb4\sl-276\slmult0\fi1536\tx8664 \up0 \expndtw0\charscalex101 Resid
ent Foreign Currency Accounts\tab \up0 \expndtw0\charscalex101 (RFC) and Fo
reign\par\pard\qj \li4461\ri928\sb1\sl-280\slmult0 \up0 \expndtw-1\charscalex100
currency (Non-Resident) Accounts (Banks) Scheme could be \up0 \expndtw0\chars
calex104 utilised for financing the pre-shipment credit in foreign \up0 \
expndtw-3\charscalex100 currency. \par\pard\ql \li3876\sb144\sl-276\slmult0\tx44
61 \up0 \expndtw-5\charscalex100 (ii) \tab \up0 \expndtw-4\charscalex100 Banks a
re also permitted to utilise the foreign currency balances \par\pard\qj \li4461\
ri928\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex103 available under Escrow
Accounts and Exporters Foreign \line \up0 \expndtw-3\charscalex100 Currency A
ccounts for the purpose, subject to ensuring that the \line \up0 \expndtw0\chars
calex102 requirements of funds by the account holders for permissible \line \up0
\expndtw0\charscalex102 transactions are met and the limit prescribed for maint
aining \line \up0 \expndtw0\charscalex100 maximum balance in the account under b
road based facility is \line \up0 \expndtw0\charscalex100 not exceeded. \par\par
d\li3876\sb152\sl-276\slmult0\fi0\tx4461 \up0 \expndtw0\charscalex100 (iii)\tab
\up0 \expndtw0\charscalex100 Foreign currency lines of credit\par\pard\li3876\sb
126\sl-276\slmult0\fi658\tx4973 \up0 \expndtw0\charscalex100 (a)\tab \up0 \expnd
tw0\charscalex100 In addition, banks may arrange for \ul0\nosupersub\cf8\f9\fs24
\u8216?lines of credit\u8217?\ul0\nosupersub\cf1\f2\fs24 from\par\pard\qj \li4
973\ri928\sb0\sl-280\slmult0 \up0 \expndtw-2\charscalex100 abroad. Banks may neg
otiate lines of credit with overseas \line \up0 \expndtw-2\charscalex100 banks
for the purpose of grant of PCFC to exporters \line \up0 \expndtw-3\char

scalex100 without the prior approval of the RBI, provided the rate of \line \up0
\expndtw-4\charscalex100 interest on the line of credit does not exceed 1 perce
nt over \line \up0 \expndtw0\charscalex102 six months LIBOR/EURO LIBOR/EURIBO
R. Cases \line \up0 \expndtw0\charscalex103 where the rate of interest exceeds
this ceiling should be \line \up0 \expndtw0\charscalex102 referred to RBI, Excha
nge Control Department, Central \line \up0 \expndtw0\charscalex101 Office, Mumba
i giving full details of the facility such as \line \up0 \expndtw-3\charscalex10
0 names of foreign banks/institutions, amount of foreign \line \up0 \expnd
tw-2\charscalex100 currency, eligibility criteria, period of facility, spread, e
tc. \line \up0 \expndtw-2\charscalex100 for prior approval. \par\pard\ql \li4535
\ri928\sb112\sl-280\slmult0\tx4973\tx4973\tx4973\tx4973 \up0 \expndtw-3\charscal
ex100 (b) \tab \up0 \expndtw-5\charscalex100 As soon as the terms and conditions
of the lines of credit to \line\tab \up0 \expndtw-1\charscalex100 be availed of
by the bank from overseas banks have been \line \tab \up0 \expndtw0\charscalex1
01 finalised, these may be advised to the Exchange Control \line \tab \up0 \expn
dtw-5\charscalex100 Department, RBI, Central Office, Mumbai. \par\pard\ql \li453
5\ri929\sb119\sl-282\slmult0\tx4973\tx4973\tx4973\tx4973\tx4973\tx4973\tx4973\tx
4973\tx4973\tx4973 \up0 \expndtw-3\charscalex100 (c) \tab \up0 \expndtw0\charsca
lex101 Banks should draw on the line of credit arranged only to \line\tab \up0 \
expndtw-2\charscalex100 the extent of loans granted by them to the exporters und
er \line \tab \up0 \expndtw0\charscalex105 the PCFC. However, where the overseas
bank making \line \tab \up0 \expndtw0\charscalex101 available the line of credi
t stipulates a minimum amount \line \tab \up0 \expndtw0\charscalex107 for drawal
s which should not be very large, the small \line \tab \up0 \expndtw-2\charscale
x100 unutilised portion may be managed by the bank within its \line \tab \up0 \e
xpndtw0\charscalex101 foreign exchange position and Aggregate Gap Limit \l
ine \tab \up0 \expndtw0\charscalex100 (AGL) limit. Similarly, any pre-payment by
the exporter \line \tab \up0 \expndtw0\charscalex103 may also be taken within t
he foreign exchange position \line \tab \up0 \expndtw-3\charscalex100 and AGL li
mits. \par\pard\ql \li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb0\sl-276\slm
ult0 \par\pard\ql\li6060\sb51\sl-276\slmult0 \up0 \expndtw-3\charscalex100 2
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l-280\slmult0 \par\pard\ql\li4535\ri930\sb109\sl-280\slmult0\tx4973\tx4973\tx497
3\tx4973\tx4973\tx4973\tx4973 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf1\f
2\fs24 (d)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Banks may av

ail of lines of credit from \ul0\nosupersub\cf8\f9\fs24 other banks in \line\tab
\up0 \expndtw0\charscalex108 India\ul0\nosupersub\cf1\f2\fs24 if they are not
in a position to raise loans from \line \tab \up0 \expndtw-2\charscalex100 abroa
d on their own, subject to the condition that ultimate \line \tab \up0 \expndtw0
\charscalex101 cost to the exporter should not exceed 1.0 percent above \line \t
ab \up0 \expndtw0\charscalex100 LIBOR/EURO LIBOR/EURIBOR, provided the bank
\line \tab \up0 \expndtw0\charscalex103 does not have a branch abroad. The sprea
d between the \line \tab \up0 \expndtw-2\charscalex100 borrowing and lending ban
k is left to the discretion of the \line \tab \up0 \expndtw-2\charscalex100 bank
s concerned. \par\pard\ql \li3876\ri928\sb141\sl-280\slmult0\tx4461\tx4461\tx446
1 \up0 \expndtw-1\charscalex100 (iv)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub
\cf1\f2\fs24 In case, the exporters have arranged for the suppliers\u8217? cre
dit for \line\tab \up0 \expndtw-1\charscalex100 procuring imported inputs, the P
CFC facility may be extended \line \tab \up0 \expndtw-1\charscalex100 by the ban
ks only for the purpose of financing domestic inputs \line \tab \up0 \expndtw-1\
charscalex100 for exports. \par\pard\li2925\sb20\sl-276\slmult0\fi0\tx3803 \up0
\expndtw-1\charscalex100 1.1.5\tab \up0 \expndtw-1\charscalex100 \ul0\nosupersub
\cf7\f8\fs24 Spread\par\pard\li2925\sb127\sl-276\slmult0\fi951\tx4461 \up0 \expn
dtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndtw-1\charscal
ex100 The spread for pre-shipment credit in foreign currency will be\par\pard\li
2925\sb4\sl-276\slmult0\fi1536 \up0 \expndtw-1\charscalex100 related to the inte
rnational reference rate such as LIBOR/EURO\par\pard\li2925\sb4\sl-276\slmult0\f
i1536 \up0 \expndtw-1\charscalex100 LIBOR/EURIBOR (6 months).\par\pard\li2925\sb
127\sl-276\slmult0\fi951\tx4461 \up0 \expndtw-1\charscalex100 (ii)\tab \up0 \exp
ndtw-1\charscalex100 The lending rate to the exporter should not exceed 1.0 perc
ent\par\pard\li2925\sb4\sl-276\slmult0\fi1536 \up0 \expndtw-1\charscalex100 over
LIBOR/EURO LIBOR/EURIBOR, excluding withholding\par\pard\li2925\sb4\sl-276\slmu
lt0\fi1536 \up0 \expndtw-1\charscalex100 tax.\par\pard\ql \li3876\ri928\sb119\sl
-280\slmult0\tx4461\tx4461\tx4461\tx4461\tx4461 \up0 \expndtw-1\charscalex100 (i
ii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 LIBOR/EURO LIBOR/EU
RIBOR rates are normally available \line\tab \up0 \expndtw0\charscalex100 for st
andard period of 1, 2, 3, 6 and 12 months. Banks may \line \tab \up0 \expnd
tw-1\charscalex100 quote rates on the basis of standard period if PCFC is requir
ed \line \tab \up0 \expndtw-4\charscalex100 for periods less than 6 months. Howe
ver, while quoting rates for \line \tab \up0 \expndtw-3\charscalex100 non-standa
rd period, banks should ensure that the rate quoted is \line \tab \up0 \expndtw3\charscalex100 below the next upper standard period rate. \par\pard\ql \li3876\
ri929\sb121\sl-280\slmult0\tx4461\tx4461\tx4461 \up0 \expndtw0\charscalex100 (iv
)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Banks may collect
interest on PCFC at quarterly intervals \line\tab \up0 \expndtw0\charscale
x104 against sale of foreign currency or out of balances in EEFC \line \tab \up0
\expndtw-2\charscalex100 accounts or out of discounted value of the export bill
s if PCFC \line \tab \up0 \expndtw-2\charscalex100 is liquidated within the quar
terly rest for collection of interest. \par\pard\li2925\sb196\sl-276\slmult0\fi0
\tx3803 \up0 \expndtw-2\charscalex100 1.1.6\tab \up0 \expndtw-2\charscalex100 \u
l0\nosupersub\cf7\f8\fs24 Period of Credit\par\pard\li2925\sb127\sl-276\slmult0\
fi951\tx4461 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \
up0 \expndtw-2\charscalex100 The PCFC will be available as in the case
of rupee credit\par\pard\qj \li4461\ri929\sb0\sl-280\slmult0 \up0 \expndtw-5\c
harscalex100 initially for a maximum period of 180 days; any extension of the \l
ine \up0 \expndtw-3\charscalex100 credit will be subject to the same term
s and conditions as \line \up0 \expndtw-2\charscalex100 applicable for extens
ion of rupee packing credit and it will also \line \up0 \expndtw-1\charscalex100
have additional interest cost of 2 percent above the rate for the \line \up0 \e
xpndtw-1\charscalex100 initial period of 180 days prevailing at the time of exte
nsion. \par\pard\ql \li3876\sb130\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscal
ex100 (ii) \tab \up0 \expndtw0\charscalex102 Further extension will be subject t
o the terms and conditions \par\pard\qj \li4461\ri926\sb0\sl-285\slmult0 \up0 \e
xpndtw-3\charscalex100 fixed by the bank concerned and if no export takes place
within \up0 \expndtw-2\charscalex100 360 days, the PCFC will be adjusted at T.T.
selling rate for the \up0 \expndtw0\charscalex100 currency concerned. In such c
ases, banks can arrange to remit \up0 \expndtw-5\charscalex100 foreign exchange
to repay the loan or line of credit raised abroad \up0 \expndtw-5\charscalex100
and interest without prior permission of RBI. \par\pard\ql \li6060\sb0\sl-276\sl
mult0 \par\pard\ql\li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb0\sl-276\slmu
lt0 \par\pard\ql\li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb0\sl-276\slmult
0 \par\pard\ql\li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb104\sl-276\slmult
0 \up0 \expndtw-3\charscalex100 3
7;32768}}
l-280\slmult0 \par\pard\ql\li3876\ri929\sb249\sl-280\slmult0\tx4461\tx4461\tx446
1\tx4461 \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf1\f2\fs24 (iii)\ul0\nosu
persub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 For extension of PCFC within 18
0 days, banks are permitted to \line\tab \up0 \expndtw0\charscalex101 extend on
a fixed roll over basis of the principal amount at the \line \tab \up0 \expndtw0
\charscalex100 applicable LIBOR/EURO LIBOR/EURIBOR rate for extended \line \tab
\up0 \expndtw0\charscalex101 period plus permitted margin (1.0 percent over LIBO
R/EURO \line \tab \up0 \expndtw0\charscalex102 LIBOR/EURIBOR). \par\pard\li2925\
sb200\sl-276\slmult0\fi0\tx3803 \up0 \expndtw-2\charscalex100 1.1.7\tab \up0 \ex
pndtw-2\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Disbursement of PCFC\par\pard\
li2925\sb148\sl-276\slmult0\fi951\tx4461 \up0 \expndtw-2\charscalex100 \ul0\nosu
persub\cf1\f2\fs24 (i)\tab \up0 \expndtw-2\charscalex100 In case, full amount
of PCFC or part thereof is utilised to\par\pard\qj \li4461\ri929\sb1\sl
-280\slmult0 \up0 \expndtw-1\charscalex100 finance domestic input, banks may app
ly appropriate spot rate \up0 \expndtw-1\charscalex100 for the transaction. \par
\pard\ql \li3876\sb144\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (ii)
\tab \up0 \expndtw0\charscalex104 As regards the minimum lots of transactions, i
t is left to the \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \expndtw-3\c
harscalex100 operational convenience of banks to stipulate the minimum lots \up0
\expndtw-2\charscalex100 taking into account the availability of their o
wn resources. \up0 \expndtw0\charscalex101 However, while fixing the minimum lo
t, banks may take into \up0 \expndtw-5\charscalex100 account the needs of their
small customers also. \par\pard\ql \li3876\ri926\sb141\sl-280\slmult0\tx4461\tx4
461\tx4461 \up0 \expndtw-2\charscalex100 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\
nosupersub\cf1\f2\fs24 Banks should take steps to streamline their procedures s
o that no \line\tab \up0 \expndtw0\charscalex101 separate sanction is needed for
PCFC once the packing credit \line \tab \up0 \expndtw-3\charscalex100 limit has
been authorised and the disbursement is not delayed at \line \tab \up0 \expndtw
-3\charscalex100 the branches. \par\pard\li2925\sb194\sl-276\slmult0\fi0\tx3803
\up0 \expndtw-3\charscalex100 1.1.8\tab \up0 \expndtw-3\charscalex100 \ul0\nosup
ersub\cf7\f8\fs24 Liquidation of PCFC Account\par\pard\li2925\sb147\sl-276\slmul
t0\fi951\tx4461 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\ta
b \up0 \expndtw-3\charscalex100 General\par\pard\ql \li4535\ri928\sb108\sl-280\s
lmult0\tx4973\tx4973\tx4973\tx4973 \up0 \expndtw0\charscalex104 (a)\ul0\nosupers
ub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The facility of PCFC will be self-l
iquidating in nature. \line\tab \up0 \expndtw0\charscalex103 Accordingly, the
PCFC should be liquidated out of \line \tab \up0 \expndtw-3\charscalex100 p
roceeds of export documents on their submission for \line \tab \up0 \expn
dtw-3\charscalex100 discounting/rediscounting under the EBR Scheme detailed \lin
e \tab \up0 \expndtw-3\charscalex100 in paragraph 2.2. \par\pard\ql \li4535\ri92
7\sb116\sl-286\slmult0\tx4973\tx4973\tx4973 \up0 \expndtw0\charscalex100 (b)\ul0
\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The export bills will have
to be discounted or covered by \line\tab \up0 \expndtw0\charscalex100 grant of
foreign currency loans (DP bills) to liquidate the \line \tab \up0 \expndtw-4\ch
arscalex100 outstanding PCFC. The question of sending export bills for \line \ta
b \up0 \expndtw-4\charscalex100 collection does not arise. \par\pard\ql \li4535\
ri927\sb119\sl-280\slmult0\tx4973 \up0 \expndtw-2\charscalex100 (c)\ul0\nosupers
ub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The PCFC should not be liquidated w
ith foreign exchange \line\tab \up0 \expndtw-2\charscalex100 acquired from other
sources. \par\pard\ql \li4535\ri928\sb121\sl-280\slmult0\tx4973 \up0 \expndtw0\
charscalex100 (d)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 PCFC
cannot be treated as a loan to be repaid in order to \line\tab \up0 \expndtw-5\c
harscalex100 avail of post-shipment credit separately. \par\pard\ql \li3876\sb14
4\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (ii) \tab \up0 \expndtw-5\
charscalex100 Packing credit in excess of F.O.B. value \par\pard\qj \li4461\ri92
8\sb121\sl-280\slmult0 \up0 \expndtw-3\charscalex100 In certain cases, (viz. agr
o based products like HPS Groundnut, \line \up0 \expndtw-1\charscalex100 defatte
d & deoiled cakes, tobacco, pepper, cardamom, cashew \line \up0 \expndtw0\charsc
alex102 nuts, etc.) where packing credit required is in excess of FOB \line \up0
\expndtw-1\charscalex100 value, PCFC would be available only for exportable por
tion of \line \up0 \expndtw-1\charscalex100 the produce. \par\pard\ql \li3876\sb
144\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (iii) \tab \up0 \expndtw
-3\charscalex100 Substitution of order/commodity \par\pard\qj \li4461\ri928\sb12
1\sl-280\slmult0 \up0 \expndtw0\charscalex106 Repayment/liquidation of PCFC \u
l0\nosupersub\cf8\f9\fs24 could be with export \line \up0 \expndtw-3\charsca
lex100 documents relating to any other order covering the same or \line \up0 \ex
pndtw-3\charscalex100 any other commodity exported by the exporter\ul0\nos
upersub\cf1\f2\fs24 . While \par\pard\ql \li6060\sb0\sl-276\slmult0 \par\pard\q
l\li6060\sb208\sl-276\slmult0 \up0 \expndtw-3\charscalex100 4
7;32768}}
}}
}
}}

}
}}
}
g5}{\bkmkend Pg5}\par\pard\qj \li4461\sb0\sl-280\slmult0 \par\pard\qj\li4461\sb0
\sl-280\slmult0 \par\pard\qj\li4461\sb0\sl-280\slmult0 \par\pard\qj\li4461\sb0\s
l-280\slmult0 \par\pard\qj\li4461\ri929\sb109\sl-280\slmult0 \up0 \expndtw-1\cha
rscalex100 \ul0\nosupersub\cf1\f2\fs24 allowing substitution of contract in
this way, banks should \up0 \expndtw-2\charscalex100 ensure that it is comme
rcially necessary and unavoidable. Banks \up0 \expndtw0\charscalex107 should als
o satisfy about the valid reasons as to why PCFC \up0 \expndtw0\charscalex106 ex
tended for shipment of a particular commodity cannot be \up0 \expndtw0\charscale
x103 liquidated in the normal method. As far as possible, the \up0 \exp
ndtw0\charscalex102 substitution of contract should be allowed if the ex
porter \up0 \expndtw0\charscalex101 maintains account with the same bank or it h
as the approval of \up0 \expndtw0\charscalex102 the members of the consortium, i
f any. \par\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb106\sl-276\slmult0\
fi0\tx3803 \up0 \expndtw-1\charscalex100 1.1.9\tab \up0 \expndtw-1\charscalex100
\ul0\nosupersub\cf7\f8\fs24 Cancellation/Non-execution of Export Order\par\pard
\li2925\sb147\sl-276\slmult0\fi951\tx4461 \up0 \expndtw-1\charscalex100 \ul0\nos
upersub\cf1\f2\fs24 (i)\tab \up0 \expndtw-1\charscalex100 In case of cancellatio
n of the export order for which the PCFC\par\pard\qj \li4461\ri928\sb0\sl-280\sl
mult0 \up0 \expndtw-2\charscalex100 was availed of by the exporter from the bank
, or if the exporter \line \up0 \expndtw-4\charscalex100 is unable to execute th
e export order for any reason, it will be in \line \up0 \expndtw0\charscalex101
order for the exporter to repay the loan together with accrued \line \up0 \expnd
tw-1\charscalex100 interest thereon, by purchasing foreign exchange (principal
+ \line \up0 \expndtw-5\charscalex100 interest) from domestic market through th
e bank. In such cases, \line \up0 \expndtw0\charscalex104 interest will be pay
able on the rupee equivalent of principal \line \up0 \expndtw-4\charscalex100 am
ount at the rate applicable to \ul0\nosupersub\cf8\f9\fs24 'Export Credit Not Ot
herwise \line \up0 \expndtw-2\charscalex100 Specified'\ul0\nosupersub\cf1\f2\fs2
4 \ul0\nosupersub\cf8\f9\fs24 (ECNOS)\ul0\nosupersub\cf1\f2\fs24 at pre-shipme
nt stage plus a penal rate of \line \up0 \expndtw-4\charscalex100 interest to be
decided by the bank from the date of advance after \line \up0 \expndtw0\charsca
lex102 adjustment of interest of PCFC already recovered. Banks are \line \up0 \e
xpndtw0\charscalex101 free to decide the rate of interest for ECNOS at pre-shipm
ent \line \up0 \expndtw-5\charscalex100 stage, subject to PLR and spread guideli
nes. \par\pard\ql \li3876\sb144\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex
100 (ii) \tab \up0 \expndtw-1\charscalex100 It will also be in order for the ban
ks to remit the amount to the \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0
\expndtw-1\charscalex100 overseas bank, provided the PCFC was made avail
able to \up0 \expndtw-1\charscalex100 exporter from the line of credit obtained
from that bank. \par\pard\ql \li3876\ri928\sb141\sl-280\slmult0\tx4461\tx4461 \
up0 \expndtw0\charscalex100 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf

1\f2\fs24 Banks may extend PCFC to such exporters subsequently, after \line\tab
\up0 \expndtw-2\charscalex100 ensuring that the earlier cancellation of P
CFC was due to \line \tab \up0 \expndtw-2\charscalex100 genuine reasons. \par
\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb105\sl-276\slmult0\fi0\tx3803
\up0 \expndtw0\charscalex100 1.1.10\tab \up0 \expndtw0\charscalex100 \ul0\nosupe
rsub\cf7\f8\fs24 Running Account Facility for All Commodities\par\pard\li2925\sb
147\sl-276\slmult0\fi951\tx4461 \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf1
\f2\fs24 (i)\tab \up0 \expndtw0\charscalex100 Banks are permitted to extend the
\u8216?Running Account\u8217? facility\par\pard\qj \li4461\ri927\sb1\sl-280\slmu
lt0 \up0 \expndtw-5\charscalex100 under the PCFC Scheme to exporters for all com
modities, on the \up0 \expndtw0\charscalex100 lines of the facility available un
der rupee credit, subject to the \up0 \expndtw0\charscalex100 following conditio
ns: \par\pard\ql \li4535\ri928\sb121\sl-280\slmult0\tx4973\tx4973 \up0 \expndtw0
\charscalex101 (a)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The
facility may be extended provided the need for \line\tab \up0 \expndtw0\
charscalex104 \u8216?Running Account\u8217? facility has been established by the
\line \tab \up0 \expndtw-5\charscalex100 exporters to the satisfaction of the b
ank. \par\pard\ql \li4535\ri929\sb121\sl-280\slmult0\tx4973 \up0 \expndtw-3\char
scalex100 (b)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Banks ma
y extend the facility only to those exporters \line\tab \up0 \expndtw-3\c
harscalex100 whose track record has been good. \par\pard\ql \li4535\ri829\sb121\
sl-280\slmult0\tx4973\tx4973 \up0 \expndtw-4\charscalex100 (c)\ul0\nosupersub\cf
6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 In all cases, where Pre-shipment Credit
\u8216?Running Account\u8217? \line\tab \up0 \expndtw-5\charscalex100 facility h
as been extended, the L/Cs or firm orders should be \line \tab \up0 \expndtw-5\c
harscalex100 produced within a reasonable period of time. \par\pard\ql \li4535\s
b124\sl-276\slmult0\tx8790 \up0 \expndtw0\charscalex101 (d)\ul0\nosupersub\cf6\f
7\fs24 \ul0\nosupersub\cf1\f2\fs24
The drawals made under Rupee \tab \up
0 \expndtw-3\charscalex100 \u8216?Running Account\u8217? \par\pard\ql \li4973\s
b4\sl-276\slmult0 \up0 \expndtw-5\charscalex100 facility should not be converted
into PCFC advances. \par\pard\ql \li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060
\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb232\sl-276\slmult0 \up0 \expndtw-3\cha
rscalex100 5
7;32768}}
l-280\slmult0 \par\pard\ql\li4535\ri927\sb109\sl-280\slmult0\tx4973 \up0 \expndt
w0\charscalex101 \ul0\nosupersub\cf1\f2\fs24 (e)\ul0\nosupersub\cf6\f7\fs24 \ul
0\nosupersub\cf1\f2\fs24 The PCFC will be marked-off on the \u8216?First-in-Fi
rst-out\u8217? \line\tab \up0 \expndtw-5\charscalex100 basis. \par\pard\ql \li45
35\ri928\sb241\sl-280\slmult0\tx4973\tx4973 \up0 \expndtw0\charscalex106 (f)\ul0
\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 PCFC can also be marked-of
f with proceeds of export \line\tab \up0 \expndtw-2\charscalex100 documents agai
nst which no PCFC has been drawn by the \line \tab \up0 \expndtw-2\charscalex100
exporter. \par\pard\ql \li3876\sb244\sl-276\slmult0\tx4461 \up0 \expndtw-5\char
scalex100 (ii) \tab \up0 \expndtw0\charscalex101 Banks should closely monitor th
e production of firm order or \par\pard\qj \li4461\ri929\sb0\sl-284\slmult0 \up0
\expndtw-2\charscalex100 L/C subsequently by exporters and also the end-use of
funds. It \up0 \expndtw-1\charscalex100 has to be ensured that no diversio

n of funds is made for \up0 \expndtw0\charscalex102 domestic use. In case o
f non-utilisation of PCFC drawals for \up0 \expndtw0\charscalex102 export purpos
es, the penal provisions stated above should be \up0 \expndtw-1\charscalex100 ma
de applicable and the \u8216?Running Account\u8217? facility should be \up0 \exp
ndtw-1\charscalex100 withdrawn for the concerned exporter. \par\pard\ql \li3876\
sb241\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (iii) \tab \up0 \expnd
tw0\charscalex106 Banks are required to take any prepayment by the exporter \par
\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \expndtw-3\charscalex100 under PC
FC scheme within their foreign exchange position and \line \up0 \expndtw-3\chars
calex100 Aggregate Gap Limit (AGL) as indicated in paragraph 1.1.4 (iii) \par\pa
rd\qj \li4461\ri928\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex102 (c) above Wi
th the extension of \u8216?Running Account\u8217? facility, \up0 \expndtw-5\cha
rscalex100 mismatches are likely to occur for a longer period involving cost \up
0 \expndtw-2\charscalex100 to the banks. Banks may charge the exporters the fund
ing cost, \up0 \expndtw-3\charscalex100 if any, involved in absorbing misma
tches in respect of the \up0 \expndtw-3\charscalex100 prepayment beyond one
month period. \par\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb0\sl-276\slm
ult0\par\pard\li2925\sb70\sl-276\slmult0\fi0\tx3803 \up0 \expndtw0\charscalex100
1.1.11\tab \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Forward Con
tracts\par\pard\li2925\sb146\sl-276\slmult0\fi951\tx4461 \up0 \expndtw0\charscal
ex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndtw0\charscalex100 In terms
of paragraph 1.1.3 (iii) above, PCFC can be extended\par\pard\qj \li4461\ri929\s
b1\sl-280\slmult0 \up0 \expndtw-4\charscalex100 in any of the convertible curren
cies in respect of an export order \line \up0 \expndtw0\charscalex102 invoiced
in another convertible currency. Banks are also \line \up0 \expndtw-1\char
scalex100 permitted to allow an exporter to book forward contract on the \line \
up0 \expndtw0\charscalex100 basis of confirmed export order prior to availing of
PCFC and \line \up0 \expndtw0\charscalex103 cancel the contract (for portion o
f drawal used for imported \line \up0 \expndtw-5\charscalex100 inputs) at prevai
ling market rates on availing of PCFC. \par\pard\ql \li3876\sb144\sl-276\slmult0
\tx4461 \up0 \expndtw-5\charscalex100 (ii) \tab \up0 \expndtw0\charscalex103 Ban
ks are permitted to allow customers to seek cover in any \par\pard\qj \li4461\ri
928\sb1\sl-280\slmult0 \up0 \expndtw-5\charscalex100 permitted currency of their
choice which is actively traded in the \up0 \expndtw0\charscalex106 market, sub
ject to ensuring that the customer is exposed to \up0 \expndtw0\charscalex102 ex
change risk in a permitted currency in the underlying \up0 \expndtw-5\ch
arscalex100 transaction. \par\pard\ql \li3876\sb0\sl-280\slmult0 \par\pard\ql\li
3876\ri929\sb81\sl-280\slmult0\tx4461\tx4461\tx4461 \up0 \expndtw-2\charscalex10
0 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 While allowing
forward contracts under the scheme, banks may \line\tab \up0 \expndtw-1\charscal
ex100 ensure compliance of the basic Exchange Control requirement \line \tab \up
0 \expndtw0\charscalex102 that the customer is exposed to an exchange ri
sk in the \line \tab \up0 \expndtw-5\charscalex100 underlying transaction at d
ifferent stages of the export finance. \par\pard\li2925\sb0\sl-276\slmult0\par\p
ard\li2925\sb107\sl-276\slmult0\fi0\tx3803 \up0 \expndtw-3\charscalex100 1.1.12\
tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Sharing of EPC und
er PCFC\par\pard\li2925\sb147\sl-276\slmult0\fi951\tx4461 \up0 \expndtw-3\charsc
alex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndtw-3\charscalex100 The ru
pee export packing credit is allowed to be shared between\par\pard\qj \li4461\ri
930\sb0\sl-280\slmult0 \up0 \expndtw-2\charscalex100 an export order holder and
the manufacturer of the goods to be \up0 \expndtw-2\charscalex100 exported. \par
\pard\ql \li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb0\sl-276\slmult0 \par\
pard\ql\li6060\sb71\sl-276\slmult0 \up0 \expndtw-3\charscalex100 6

7;32768}}
g7}{\bkmkend Pg7}\par\pard\li3876\sb0\sl-276\slmult0\par\pard\li3876\sb0\sl-276\
slmult0\par\pard\li3876\sb0\sl-276\slmult0\par\pard\li3876\sb0\sl-276\slmult0\pa
r\pard\li3876\sb138\sl-276\slmult0\fi0\tx4461 \up0 \expndtw-1\charscalex100 \ul0
\nosupersub\cf1\f2\fs24 (ii)\tab \up0 \expndtw-1\charscalex100 Similarly, banks
may extend PCFC also to the manufacturer on\par\pard\qj \li4461\ri929\sb0\sl-280
\slmult0 \up0 \expndtw-1\charscalex100 the basis of the disclaimer from the expo
rt order holder through \up0 \expndtw0\charscalex103 his bank. PCFC granted to t
he manufacturer can be repaid by \up0 \expndtw0\charscalex105 transfer of foreig
n currency from the export order holder by \up0 \expndtw-1\charscalex100 availin
g of PCFC or by discounting of bills. Banks should \up0 \expndtw0\chars
calex103 ensure that no double financing is involved in the transaction \up0 \ex
pndtw0\charscalex105 and the total period of packing credit is limited to the ac
tual \up0 \expndtw-3\charscalex100 cycle of production of the exported goods. \p
ar\pard\ql \li3876\ri929\sb232\sl-280\slmult0\tx4461\tx4461\tx4461\tx4461\tx4461
\tx4461 \up0 \expndtw0\charscalex101 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosu
persub\cf1\f2\fs24 The facility may be extended where the banker or the leader
of \line\tab \up0 \expndtw-2\charscalex100 consortium of banks is the same for b
oth the export order holder \line \tab \up0 \expndtw0\charscalex101 and the manu
facturer or, the banks concerned agree to such an \line \tab \up0 \expndtw0\char
scalex104 arrangement where the bankers are different for export order \line \ta
b \up0 \expndtw-1\charscalex100 holder and manufacturer. The sharing of export b
enefits will be \line \tab \up0 \expndtw0\charscalex104 left to the mutual agree
ment between the export order holder \line \tab \up0 \expndtw-3\charscalex100 an
d the manufacturer. \par\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb234\sl
-276\slmult0\fi0\tx3803 \up0 \expndtw0\charscalex101 1.1.13\tab \up0 \expndtw0\c
harscalex101 \ul0\nosupersub\cf7\f8\fs24 Supplies from One EOU/EPZ/\ul0\nosupers
ub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf7\f8\fs24 Unit to Another EOU/EPZ/\ul0\nos
upersub\cf9\f10\fs24 SEZ\par\pard\li2925\sb5\sl-276\slmult0\fi877 \up0 \expndtw0
\charscalex101 \ul0\nosupersub\cf7\f8\fs24 Unit\par\pard\ql \li3876\sb117\sl-276
\slmult0\tx4461 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i) \t
ab \up0 \expndtw0\charscalex101 PCFC may be made available to both the supplier
EOU/EPZ/ \par\pard\ql \li4461\sb4\sl-276\slmult0 \up0 \expndtw-5\charscalex100 \
ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf7\f8\fs24 \ul0\nosupersub\cf1\
f2\fs24 unit and the receiver EOU/EPZ/\ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosup
ersub\cf1\f2\fs24 unit. \par\pard\ql \li3876\sb244\sl-276\slmult0\tx4461 \up0 \
expndtw-5\charscalex100 (ii) \tab \up0 \expndtw-4\charscalex100 The PCFC for sup
plier EOU/EPZ/\ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit
will be for supply of \par\pard\qj \li4461\ri928\sb1\sl-280\slmult0 \up0 \expndt
w0\charscalex100 raw materials/components of goods which will be further
\line \up0 \expndtw-3\charscalex100 processed and finally exported by receiver E
OU/EPZ/\ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit. \line
\up0 \expndtw0\charscalex103 The PCFC extended to the supplier EOU/EPZ/\ul0\nosu
persub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit will \line \up0 \expndt
w0\charscalex101 have to be liquidated by receipt of foreign exchange from the \
line \up0 \expndtw0\charscalex102 receiver EOU/EPZ/\ul0\nosupersub\cf9\f10\fs24
SEZ\ul0\nosupersub\cf1\f2\fs24 unit, for which purpose, the receiver \line \up0
\expndtw0\charscalex103 EOU/EPZ/\ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosupersub
\cf1\f2\fs24 unit may avail of PCFC. The stipulation \line \up0 \expndtw
-3\charscalex100 regarding liquidation of PCFC by payment in foreign exchange \l
ine \up0 \expndtw0\charscalex104 will be met in such cases not by negoti
ation of export \line \up0 \expndtw-2\charscalex100 documents but by transfer
of foreign exchange from the banker \line \up0 \expndtw0\charscalex103 of the re
ceiver EOU/EPZ/\ul0\nosupersub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit
to the banker of supplier \line \up0 \expndtw-2\charscalex100 EOU/EPZ/\ul0\nosu
persub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit. Thus, there will not n

ormally be any post-\line \up0 \expndtw-2\charscalex100 shipment credit in the t
ransaction from the supplier EOU/EPZ/ \line \up0 \expndtw-2\charscalex100 \ul0\n
osupersub\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit\u8217?s point of vie
w. \par\pard\ql \li3876\sb264\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex10
0 (iii) \tab \up0 \expndtw0\charscalex100 In all such cases, it has to be ensure
d by banks that there is no \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \
expndtw-2\charscalex100 double financing for the same transaction. Needless to a
dd, the \up0 \expndtw-3\charscalex100 PCFC to receiver EOU/EPZ/\ul0\nosupersu
b\cf9\f10\fs24 SEZ\ul0\nosupersub\cf1\f2\fs24 unit will be liquidated by \
up0 \expndtw-3\charscalex100 discounting of export bills. \par\pard\li2925\sb0\s
l-276\slmult0\par\pard\li2925\sb97\sl-276\slmult0\fi0\tx3803 \up0 \expndtw-3\cha
rscalex100 1.1.14\tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf7\f8\fs24
Deemed Exports\par\pard\qj \li3876\ri928\sb112\sl-280\slmult0\fi0 \up0 \expndtw0
\charscalex104 \ul0\nosupersub\cf1\f2\fs24 PCFC may be allowed only for \u8216?
deemed exports\u8217? for supplies to \line \up0 \expndtw0\charscalex100 project
s financed by multilateral/bilateral agencies/funds. PCFC \line \up0 \expnd
tw-4\charscalex100 released for \u8216?deemed exports\u8217? should be liquidate
d by grant of foreign \line \up0 \expndtw-2\charscalex100 currency loan at postsupply stage, for a maximum period of 30 days \line \up0 \expndtw0\charscalex100
or up to the date of payment by the project authorities, whichever is \line \up
0 \expndtw0\charscalex100 earlier. \par\pard\ql \li6060\sb0\sl-276\slmult0 \par\
pard\ql\li6060\sb188\sl-276\slmult0 \up0 \expndtw-3\charscalex100 7
7;32768}}
l-276\slmult0 \par\pard\ql\li2925\sb128\sl-276\slmult0 \up0 \expndtw0\charscalex
101 \ul0\nosupersub\cf1\f2\fs24 1.1.15\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupers
ub\cf7\f8\fs24 Refinance \par\pard\qj \li3876\ri929\sb141\sl-280\slmult0 \up0
\expndtw0\charscalex101 \ul0\nosupersub\cf1\f2\fs24 Banks will not be eligible f
or any refinance from RBI against export \up0 \expndtw0\charscalex104 credit und
er the PCFC scheme and, as such, the quantum of PCFC \up0 \expndtw-2\charscalex1
00 should be shown separately from the export credit figures reported for \up0 \
expndtw-2\charscalex100 the purpose of drawing export credit refinance. \par\par
d\ql \li2925\sb0\sl-276\slmult0 \par\pard\ql\li2925\sb0\sl-276\slmult0 \par\pard
\ql\li2925\sb72\sl-276\slmult0 \up0 \expndtw0\charscalex101 1.1.16\ul0\nosupersu
b\cf6\f7\fs24 \ul0\nosupersub\cf7\f8\fs24 Other Aspects \par\pard\ql \li3876\
sb244\sl-276\slmult0\tx4461 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2
\fs24 (i) \tab \up0 \expndtw0\charscalex107 The applicable benefits such as cred
it of eligible percent of \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \ex
pndtw0\charscalex105 export proceeds to EEFC Account etc. to the exporters will
\up0 \expndtw0\charscalex102 accrue only after realisation of the export bills a
nd not at the \up0 \expndtw-4\charscalex100 stage of conversion of pre-shipm
ent credit to post-shipment \up0 \expndtw-1\charscalex100 credit (except when
bills are discounted/ rediscounted 'without \up0 \expndtw-1\charscalex100 recou
rse'). Surplus of export proceeds available after adjusting \up0 \expndtw0\chars
calex100 relative export finance and credit to EEFC account should not \up0 \exp
ndtw0\charscalex100 be allowed for setting-off of import bills. \par\pard\li3876
\sb0\sl-276\slmult0\par\pard\li3876\sb103\sl-276\slmult0\fi0\tx4461 \up0 \expndt
w-2\charscalex100 (ii)\tab \up0 \expndtw-2\charscalex100 ECGC cover will be avai

lable in rupees only, whereas, PCFC is\par\pard\li3876\sb6\sl-276\slmult0\fi585
\up0 \expndtw-2\charscalex100 in foreign currency.\par\pard\ql \li3876\sb0\sl-28
0\slmult0 \par\pard\ql\li3876\ri929\sb84\sl-280\slmult0\tx4461\tx4461 \up0 \expn
dtw0\charscalex100 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24
For the purpose of reckoning banks' performance in extending \line\tab \up0 \e
xpndtw0\charscalex101 export credit, the rupee equivalent of the PCFC may be tak
en \line \tab \up0 \expndtw-5\charscalex100 into account. \par\pard\ql \li2194\s
b0\sl-299\slmult0 \par\pard\ql\li2194\sb0\sl-299\slmult0 \par\pard\ql\li2194\sb1
27\sl-299\slmult0\tx2925 \up0 \expndtw-5\charscalex100 \ul0\nosupersub\cf3\f4\fs
26 1.2 \tab \up0 \expndtw-5\charscalex100 \ul0\nosupersub\cf5\f6\fs26 Diamond Do
llar Account (DDA) Scheme \par\pard\ql \li3657\sb200\sl-276\slmult0\tx6524 \up0
\expndtw0\charscalex105 \ul0\nosupersub\cf1\f2\fs24 Under the Exim Policy \ta
b \up0 \expndtw0\charscalex101 1997-2002, firms/companies dealing in \par\par
d\qj \li3657\ri927\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex100 purchase/sale
of rough or cut and polished diamonds, with good track \up0 \expndtw0\charscale
x101 record of at least three years in import or export of diamonds with an \up0
\expndtw0\charscalex101 annual average turnover of Rs. 5 crore or above during
the preceding \up0 \expndtw0\charscalex102 three licensing years are permitted t
o carry out their business through \up0 \expndtw-5\charscalex100 designated Diam
ond Dollar Accounts (DDAs). Under the DDA Scheme, \up0 \expndtw0\charscalex104 i
t would be in order for banks to liquidate PCFC granted to a DDA \up0 \expndtw0\
charscalex101 holder by dollar proceeds from sale of cut and polished diamonds b
y \up0 \expndtw-5\charscalex100 him to another DDA holder. \par\pard\li1463\sb0\
sl-299\slmult0\par\pard\li1463\sb0\sl-299\slmult0\par\pard\li1463\sb21\sl-299\sl
mult0\fi0\tx2194 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf2\f3\fs26 2.\ta
b \up0 \expndtw-3\charscalex100 POST-SHIPMENT EXPORT CREDIT\par\pard\li1463\sb0\
sl-276\slmult0\par\pard\li1463\sb93\sl-276\slmult0\fi731\tx2925 \up0 \expndtw-3\
charscalex100 \ul0\nosupersub\cf1\f2\fs24 2.1\tab \up0 \expndtw-3\charscalex100
\ul0\nosupersub\cf8\f9\fs24 Definition\par\pard\qj \li2925\ri929\sb158\sl-280\sl
mult0 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf1\f2\fs24 'Post-shipment Cr
edit' means any loan or advance granted or any other credit \line \up0 \expndtw0
\charscalex102 provided by an institution to an exporter of goods from India fro
m the date of \line \up0 \expndtw0\charscalex105 extending credit after shipment
of goods to the date of realisation of export \line \up0 \expndtw-3\charscalex1
00 proceeds. \par\pard\ql \li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb0\sl276\slmult0 \par\pard\ql\li6060\sb0\sl-276\slmult0 \par\pard\ql\li6060\sb156\sl276\slmult0 \up0 \expndtw-3\charscalex100 8
7;32768}}
g9}{\bkmkend Pg9}\par\pard\li2194\sb0\sl-299\slmult0\par\pard\li2194\sb0\sl-299\
slmult0\par\pard\li2194\sb0\sl-299\slmult0\par\pard\li2194\sb0\sl-299\slmult0\pa
r\pard\li2194\sb66\sl-299\slmult0\fi0\tx2926 \up0 \expndtw-3\charscalex100 \ul0\
nosupersub\cf1\f2\fs24 2.2.\tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf
5\f6\fs26 Rediscounting of Export Bills Abroad Scheme (EBR)\par\pard\li2194\sb16
7\sl-276\slmult0\fi731\tx3779 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf9\
f10\fs24 2.2.1\tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Gen
eral\par\pard\qj \li3876\ri925\sb109\sl-300\slmult0 \up0 \expndtw-4\charscalex10
0 \ul0\nosupersub\cf1\f2\fs24 Banks are also allowed to rediscount export bills
abroad at rates linked \up0 \expndtw-5\charscalex100 to international interest r
ates at post-shipment stage. \par\pard\ql \li2925\sb180\sl-276\slmult0 \up0 \exp

ndtw-3\charscalex100 \ul0\nosupersub\cf9\f10\fs24 2.2.2.\ul0\nosupersub\cf6\f7\f
s24 \ul0\nosupersub\cf9\f10\fs24 \ul0\nosupersub\cf7\f8\fs24 Exporters' Choi
ce \par\pard\qj \li3876\ri929\sb141\sl-280\slmult0 \up0 \expndtw-4\charscalex100
\ul0\nosupersub\cf1\f2\fs24 The exporters have the option to avail of pre-shipm
ent credit and post-\line \up0 \expndtw-3\charscalex100 shipment credit either i
n rupee or in foreign currency. However, if the \line \up0 \expndtw0\charscalex1
02 pre-shipment credit has been availed in foreign currency, the post-\line \up0
\expndtw0\charscalex101 shipment credit has \ul0\nosupersub\cf8\f9\fs24 necessa
rily\ul0\nosupersub\cf1\f2\fs24 to be under the EBR scheme since \line \up0 \ex
pndtw0\charscalex100 foreign currency pre-shipment credit has to be liquidated i
n foreign \line \up0 \expndtw0\charscalex100 currency. \par\pard\li2925\sb193\sl
-276\slmult0\fi0\tx3840 \up0 \expndtw0\charscalex103 2.2.3\tab \up0 \expndtw0\ch
arscalex103 \ul0\nosupersub\cf8\f9\fs24 Scheme\par\pard\li2925\sb147\sl-276\slmu
lt0\fi951\tx4461 \up0 \expndtw0\charscalex103 \ul0\nosupersub\cf1\f2\fs24 (i)\ta
b \up0 \expndtw0\charscalex103 It will be comparatively easier to have a facilit
y against bills\par\pard\qj \li4461\ri928\sb0\sl-280\slmult0 \up0 \expndtw-2\cha
rscalex100 portfolio (covering all eligible bills) than to have rediscounting \u
p0 \expndtw-1\charscalex100 facility abroad on bill by bill basis. There will, h
owever, be no \up0 \expndtw-4\charscalex100 bar if rediscounting facility on bil
l to bill basis is arranged by an \up0 \expndtw0\charscalex105 bank in case of a
ny particular exporter, especially for large \up0 \expndtw-5\charscalex100 value
transactions. \par\pard\ql \li3876\sb133\sl-276\slmult0\tx4461 \up0 \expndtw-5\
charscalex100 (ii) \tab \up0 \expndtw-1\charscalex100 Banks may arrange a \ul0\n
osupersub\cf8\f9\fs24 "Bankers Acceptance Facility" (BAF) \par\pard\qj \li4461\r
i929\sb1\sl-280\slmult0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs2
4 for rediscounting the export bills without any margin and duly \up0 \expndtw-1
\charscalex100 covered by collateralised documents. \par\pard\ql \li3876\sb164\s
l-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (iii) \tab \up0 \expndtw-4\ch
arscalex100 Each bank can have its own BAF limit(s) fixed with an overseas \par\
pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex104 bank or a
rediscounting agency or an arrangement with any \line \up0 \expndtw0\charscalex1
04 other agency such as factoring agency (in case of factoring \line \up0 \expn
dtw-5\charscalex100 arrangement, it should be on "without recourse" basis only).
\par\pard\ql \li3876\sb144\sl-276\slmult0\tx4461 \up0 \expndtw-3\charscalex100
(iv) \tab \up0 \expndtw-5\charscalex100 The exporters, on their own, can arrange
for themselves a line of \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \ex
pndtw0\charscalex100 credit with an overseas bank or any other agency (including
a \up0 \expndtw-5\charscalex100 factoring agency) for discounting their export
bills direct subject \up0 \expndtw-5\charscalex100 to the following conditions:
\par\pard\ql \li4535\ri927\sb121\sl-280\slmult0\tx4973\tx4973\tx4973 \up0 \expnd
tw0\charscalex102 (a)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 D
irect discounting of export bills by exporters with \line\tab \up0 \expnd
tw-2\charscalex100 overseas bank and/or any other agency will be done only \li
ne \tab \up0 \expndtw0\charscalex102 through the branch of a bank designated by
him for this \line \tab \up0 \expndtw-3\charscalex100 purpose. \par\pard\ql \li4
535\ri927\sb121\sl-280\slmult0\tx4973\tx4973\tx4973\tx4973\tx4973 \up0 \expndtw0
\charscalex105 (b)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Disc
ounting of export bills will be routed through \line\tab \up0 \expndtw-4\
charscalex100 designated bank from whom the packing credit facility has \line \t
ab \up0 \expndtw-4\charscalex100 been availed of. In case, these are routed thro
ugh any other \line \tab \up0 \expndtw-4\charscalex100 bank, the latter will
first arrange to adjust the amount \line \tab \up0 \expndtw-2\charscalex10
0 outstanding under packing credit with the concerned bank \line \tab \up0 \expn
dtw-2\charscalex100 out of the proceeds of the rediscounted bills. \par\pard\ql
\li3876\sb144\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (v) \tab \up0
\expndtw-4\charscalex100 As soon as terms and conditions of BAF/lines of credit
or similar \par\pard\qj \li4461\ri812\sb1\sl-280\slmult0 \up0 \expndtw-4\charsca
lex100 facility with overseas bank/discounting agency or any other \line
\up0 \expndtw-5\charscalex100 agency have been finalised, these may be advised b
y the bank or \line \up0 \expndtw-4\charscalex100 by the designated branch in th

e case of lines of credit negotiated \line \up0 \expndtw-4\charscalex100 directl
y by the exporter to the ECD, RBI, Central Office, Mumbai \par\pard\ql \li6060\s
b0\sl-276\slmult0 \par\pard\ql\li6060\sb208\sl-276\slmult0 \up0 \expndtw-3\chars
calex100 9
7;32768}}
g10}{\bkmkend Pg10}\par\pard\qj \li4461\sb0\sl-280\slmult0 \par\pard\qj\li4461\s
b0\sl-280\slmult0 \par\pard\qj\li4461\sb0\sl-280\slmult0 \par\pard\qj\li4461\sb0
\sl-280\slmult0 \par\pard\qj\li4461\ri876\sb109\sl-280\slmult0 \up0 \expndtw-1\c
harscalex100 \ul0\nosupersub\cf1\f2\fs24 together with a copy of the agree
ment entered into by the \up0 \expndtw-1\charscalex100 bank/exporter with ov
erseas bank/discounting agency/any other \up0 \expndtw-1\charscalex100 agency, a
s the case may be. \par\pard\ql \li3876\ri928\sb141\sl-280\slmult0\tx4461\tx4461
\up0 \expndtw0\charscalex100 (vi)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\c
f1\f2\fs24 The limits granted to banks by overseas banks/discounting \l
ine\tab \up0 \expndtw0\charscalex105 agencies under BAF will not be reckoned for
the purpose of \line \tab \up0 \expndtw-3\charscalex100 borrowing limits fixed
by RBI (ECD) for them. \par\pard\li2925\sb200\sl-276\slmult0\fi0\tx3840 \up0 \ex
pndtw0\charscalex100 2.2.4\tab \up0 \expndtw0\charscalex100 \ul0\nosupersub\cf8\
f9\fs24 Eligibility Criteria\par\pard\li2925\sb148\sl-276\slmult0\fi951\tx4461 \
up0 \expndtw0\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndtw0\c
harscalex100 The Scheme will cover mainly export bills with usance period\par\pa
rd\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex103 upto 180 day
s from the date of shipment (inclusive of normal \up0 \expndtw0\charscalex103 tr
ansit period and grace period, if any). There is, however, no \up0 \expndtw0\cha
rscalex101 bar to include demand bills if overseas institution has no \
up0 \expndtw0\charscalex102 objection to it. \par\pard\ql \li3876\sb144\sl-276\s
lmult0\tx4461 \up0 \expndtw-3\charscalex100 (ii) \tab \up0 \expndtw0\charscalex1
04 For rediscounting export bills having payment terms beyond \par\pard\qj \li44
61\ri928\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex108 180 days from date of
shipment, proposals will have to be \up0 \expndtw0\charscalex103 submitted to th
e RBI (ECD), Mumbai, furnishing all relevant \up0 \expndtw-3\charscalex100 detai
ls, for prior approval. \par\pard\ql \li3876\ri929\sb141\sl-280\slmult0\tx4461 \
up0 \expndtw0\charscalex100 (iii)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf
1\f2\fs24 The facility under the Scheme of Rediscounting may be offered \line\t
ab \up0 \expndtw0\charscalex100 in any convertible currency. \par\pard\ql \li387
6\ri930\sb141\sl-280\slmult0\tx4461 \up0 \expndtw0\charscalex104 (iv)\ul0\nosupe
rsub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Banks are permitted to extend th
e EBR facility for exports to \line\tab \up0 \expndtw-3\charscalex100 ACU countr
ies. \par\pard\ql \li3876\ri928\sb141\sl-280\slmult0\tx4461\tx4461\tx4461 \up0 \
expndtw0\charscalex108 (v)\ul0\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs
24 For operational convenience, the BAF Scheme may be \line\tab \up0 \e
xpndtw-1\charscalex100 centralised at a branch designated by the bank. T
here will, \line \tab \up0 \expndtw-2\charscalex100 however, be no bar for othe
r branches of the bank to operate the \line \tab \up0 \expndtw-2\charscalex100 s
cheme as per their internal guidelines/instructions. \par\pard\li2925\sb0\sl-276
\slmult0\par\pard\li2925\sb108\sl-276\slmult0\fi0\tx3657 \up0 \expndtw0\charscal
ex101 \ul0\nosupersub\cf9\f10\fs24 2.2.5\tab \up0 \expndtw0\charscalex101 \ul0\n
osupersub\cf7\f8\fs24 Source of On-shore Funds\par\pard\li2925\sb147\sl-276\slmu
lt0\fi951\tx4461 \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf1\f2\fs24 (i)\ta

b \up0 \expndtw0\charscalex101 There will be no bar on banks to utilise the fore
ign exchange\par\pard\qj \li4461\ri929\sb0\sl-280\slmult0 \up0 \expndtw-3\charsc
alex100 resources available with them in Exchange Earners Foreign \line \
up0 \expndtw-3\charscalex100 Currency Accounts \up0 \expndtw-3\charscalex100 (
EEFC), Resident Foreign Currency \par\pard\qj \li4461\ri929\sb0\sl-280\slm
ult0 \up0 \expndtw-2\charscalex100 Accounts (RFC), Foreign Currency (Non-Resid
ent) Accounts \line \up0 \expndtw0\charscalex103 (Banks) Scheme, to discount usa
nce bills and retain them in \line \up0 \expndtw-2\charscalex100 their portfolio
without resorting to rediscounting. In the case of \line \up0 \expndtw-2\charsc
alex100 demand bills [subject to what has been stated in paragraph 2.2.4 \par\pa
rd\qj \li4461\ri928\sb0\sl-280\slmult0 \up0 \expndtw0\charscalex104 (i) above],
these may have to be routed through the existing \up0 \expndtw0\charscalex104 po
st-shipment credit facility or by way of foreign exchange \up0 \expndtw-3\charsc
alex100 loans to the exporters out of the foreign currency balances \up
0 \expndtw-3\charscalex100 available with banks in the Schemes ibid. \par\pard\q
l \li3876\sb244\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (ii) \tab \u
p0 \expndtw-4\charscalex100 To facilitate the growth of local market for redisco
unting export \par\pard\qj \li4461\ri928\sb1\sl-280\slmult0 \up0 \expndtw0\chars
calex103 bills, establishment and development of an active inter-bank \line \up0
\expndtw0\charscalex101 market is desirable. It is possible that banks hold bil
ls in their \line \up0 \expndtw-3\charscalex100 own portfolio without rediscount
ing. However, in case of need, \line \up0 \expndtw0\charscalex102 the banks shou
ld also have access to the local market, which \line \up0 \expndtw-4\charscalex1
00 will enable the country to save foreign exchange to the extent of \line \up0
\expndtw0\charscalex103 the cost of rediscounting. Further, as different banks m
ay be \line \up0 \expndtw0\charscalex104 having BAF for varying amounts, it will
be possible for a bank \par\pard\ql \li6000\sb0\sl-276\slmult0 \par\pard\ql\li6
000\sb228\sl-276\slmult0 \up0 \expndtw-3\charscalex100 10
7;32768}}
\sl-280\slmult0 \par\pard\qj\li4461\ri929\sb109\sl-280\slmult0 \up0 \expndtw0\ch
arscalex103 \ul0\nosupersub\cf1\f2\fs24 which has balance available in its limit
to offer rediscounting \up0 \expndtw0\charscalex102 facility to another bank wh
ich may have exhausted its limit or \up0 \expndtw0\charscalex103 could not arran
ge for such a facility. \par\pard\ql \li3876\ri927\sb241\sl-280\slmult0\tx4461\t
x4461\tx4461\tx4461\tx4461\tx4461 \up0 \expndtw0\charscalex103 (iii)\ul0\nosuper
sub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Banks may avail of lines of credit
from other banks in India if \line\tab \up0 \expndtw-3\charscalex100 they are n
ot in a position to raise loans from abroad on their own \line \tab \up0 \expndt
w0\charscalex104 or they do not have branches abroad, subject to the condition \
line \tab \up0 \expndtw0\charscalex100 that ultimate cost to the exporter should
not exceed 1.0 percent \line \tab \up0 \expndtw-3\charscalex100 above LIBOR/EUR
O LIBOR/EURIBOR excluding withholding \line \tab \up0 \expndtw0\charscalex100 ta
x. The spread between the borrowing and lending bank is left \line \tab \up0 \ex
pndtw0\charscalex100 to the discretion of the banks concerned. \par\pard\ql \li2
925\sb204\sl-276\slmult0\tx3657 \up0 \expndtw-5\charscalex100 \ul0\nosupersub\cf
9\f10\fs24 2.2.6 \tab \up0 \expndtw-5\charscalex100 \ul0\nosupersub\cf7\f8\fs24
Facility of Rediscounting 'with recourse' and 'without recourse' \par\pard\ql \l

i3876\sb144\sl-276\slmult0\tx8993 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\
cf1\f2\fs24 It is recognised that it will be difficult to get \tab \up0
\expndtw-4\charscalex100 \u8216?without recourse \par\pard\qj \li3876\ri928\sb
1\sl-280\slmult0\fi0 \up0 \expndtw-2\charscalex100 "facility from abroad under B
AF or any other facility. Therefore, the \up0 \expndtw-1\charscalex100 bills may
be rediscounted \u8216?with recourse\u8217?. However, if an AD is in a \up0 \ex
pndtw-3\charscalex100 position to arrange \u8216?without recourse\u8217? facilit
y on competitive terms, it \up0 \expndtw-4\charscalex100 is permitted to avail i
tself of such a facility. \par\pard\li2925\sb191\sl-276\slmult0\fi0\tx3657 \up0
\expndtw-2\charscalex100 2.2.7\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub
\cf8\f9\fs24 Accounting Aspects\par\pard\li2925\sb106\sl-276\slmult0\fi951\tx446
1 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (i)\tab \up0 \expndt
w-2\charscalex100 The Rupee equivalent of the discounted value of the export bil
ls\par\pard\qj \li4461\ri929\sb0\sl-280\slmult0 \up0 \expndtw-1\charscalex100 wi
ll be payable to the exporter and the same should be utilised \up0 \expndtw-1\ch
arscalex100 to liquidate the outstanding export packing credit. \par\pard\ql \li
3876\sb96\sl-276\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (ii) \tab \up0 \ex
pndtw-2\charscalex100 As the discounting of bills/extension of foreign exchange
loans \par\pard\qj \li4461\ri928\sb1\sl-280\slmult0 \up0 \expndtw-1\charscalex10
0 (DP bills) will be in actual foreign exchange, banks may apply \up0 \expndtw-1
\charscalex100 appropriate spot rate for the transactions. \par\pard\ql \li3876\
ri929\sb101\sl-280\slmult0\tx4461\tx4461 \up0 \expndtw-3\charscalex100 (iii)\ul0
\nosupersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 The Rupee equivalents of d
iscounted amounts/foreign exchange \line\tab \up0 \expndtw-2\charscalex100 loan
may be held in the bank\u8217?s books distinct from the existing \line \tab \up0
\expndtw-2\charscalex100 post-shipment credit accounts. \par\pard\ql \li3876\ri
929\sb101\sl-280\slmult0\tx4461\tx4461 \up0 \expndtw0\charscalex100 (iv)\ul0\nos
upersub\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 In case of overdue bills bank
s may charge 2 percent above the \line\tab \up0 \expndtw-4\charscalex100 rate of
rediscounting of foreign exchange loan from the due date \line \tab \up0 \expnd
tw-4\charscalex100 to the date of crystallisation. \par\pard\ql \li3876\ri929\sb
92\sl-290\slmult0\tx4461\tx4461 \up0 \expndtw0\charscalex100 (v)\ul0\nosupersub\
cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 Interest rate as per RBI interest rat
e directive for post-shipment \line\tab \up0 \expndtw0\charscalex109 credit in
Rupees will be applicable from the date of \line \tab \up0 \expndtw-5\ch
arscalex100 crystallisation. \par\pard\ql \li3876\ri929\sb99\sl-280\slmult0\tx44
61\tx4461\tx4461 \up0 \expndtw0\charscalex100 (vi)\ul0\nosupersub\cf6\f7\fs24 \
ul0\nosupersub\cf1\f2\fs24 In the event of export bill not being paid, it will
be in order for \line\tab \up0 \expndtw-1\charscalex100 the bank to remit the a
mount equivalent to the value of the bill \line \tab \up0 \expndtw-1\charscalex1
00 earlier discounted, to the overseas bank/agency which had \line \tab \
up0 \expndtw-1\charscalex100 discounted the bill, without the prior approval of
the RBI. \par\pard\li2925\sb189\sl-276\slmult0\fi0\tx3657 \up0 \expndtw-2\charsc
alex100 \ul0\nosupersub\cf9\f10\fs24 2.2.8\tab \up0 \expndtw-1\charscalex100 \ul
0\nosupersub\cf7\f8\fs24 Restoration of Limits and Availability of Export
Benefits such as\par\pard\li2925\sb6\sl-276\slmult0\fi731 \up0 \expndtw-2\cha
rscalex100 EEFC Account\par\pard\qj \li3803\ri768\sb94\sl-280\slmult0 \up0 \expn
dtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 As stated in paragraph 2.2.6 abo
ve, "Without Recourse" facility may \line \up0 \expndtw0\charscalex101 not gener
ally be available. Thus, the restoration of exporter\u8217?s limits \line \up0 \
expndtw0\charscalex102 and the availability of export benefits, such as
credit to EEFC \line \up0 \expndtw-5\charscalex100 accounts, in case of "with
recourse" facility, will be effected only on \line \up0 \expndtw0\charsc
alex105 realisation of export proceeds and not on the date of discounting/ \line
\up0 \expndtw-1\charscalex100 rediscounting of the bills, However, if the
bills are rediscounted \par\pard\ql \li6000\sb0\sl-276\slmult0 \par\pard\ql\
li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb92\sl-276\slmult0 \up0 \expndtw3\charscalex100 11
7;32768}}
\sl-280\slmult0 \par\pard\qj\li3803\ri928\sb109\sl-280\slmult0 \up0 \expndtw-2\c
harscalex100 \ul0\nosupersub\cf1\f2\fs24 "without recourse", the restoration of
exporter\u8217?s limits and availability \line \up0 \expndtw-3\charscalex100 of
export benefits may be given effect immediately on rediscounting. \par\pard\li29
25\sb0\sl-276\slmult0\par\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb88\sl
-276\slmult0\fi0\tx3803 \up0 \expndtw-3\charscalex100 2.2.9\tab \up0 \expndtw-3\
charscalex100 \ul0\nosupersub\cf7\f8\fs24 ECGC Cover\par\pard\qj \li3876\ri928\s
b82\sl-284\slmult0 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 In
the case of export bills rediscounted \u8216?with recourse\u8217?, there will no
t \up0 \expndtw-2\charscalex100 be any change in the existing system of coverage
provided by Export \up0 \expndtw-2\charscalex100 Credit Guarantee Corporation (
ECGC) as the liability of the exporter \up0 \expndtw-2\charscalex100 continues t
ill the relative bill is retired/paid. In other cases, where the \up0 \expndtw-3
\charscalex100 bills are rediscounted \u8216?without recourse\u8217?, the liabil
ity of ECGC ceases \up0 \expndtw-4\charscalex100 as soon as the relative bills a
re rediscounted. \par\pard\li2925\sb0\sl-276\slmult0\par\pard\li2925\sb0\sl-276\
slmult0\par\pard\li2925\sb77\sl-276\slmult0\fi0\tx3840 \up0 \expndtw-3\charscale
x100 \ul0\nosupersub\cf9\f10\fs24 2.2.10\tab \up0 \expndtw-3\charscalex100 \ul0\
nosupersub\cf7\f8\fs24 Refinance\par\pard\qj \li3876\ri928\sb155\sl-280\slmult0\
fi0 \up0 \expndtw-1\charscalex100 \ul0\nosupersub\cf1\f2\fs24 Banks \ul0\nosuper
sub\cf8\f9\fs24 will not be eligible\ul0\nosupersub\cf1\f2\fs24 for refinance f
rom the RBI against export \up0 \expndtw-3\charscalex100 bills discounted/redisc
ounted under the Scheme and as such, the bills \up0 \expndtw0\charscalex104 disc
ounted/rediscounted in foreign currency should be shown \up0 \expndtw0\cha
rscalex104 separately from the export credit figures reported for purposes of \u
p0 \expndtw-5\charscalex100 drawing export credit refinance. \par\pard\li2925\sb
0\sl-276\slmult0\par\pard\li2925\sb103\sl-276\slmult0\fi0\tx3840 \up0 \expndtw0\
charscalex101 \ul0\nosupersub\cf9\f10\fs24 2.2.11\tab \up0 \expndtw0\charscalex1
01 \ul0\nosupersub\cf7\f8\fs24 Export Credit Performance\par\pard\li2925\sb168\s
l-276\slmult0\fi950\tx4461 \up0 \expndtw0\charscalex101 \ul0\nosupersub\cf1\f2\f
s24 (i)\tab \up0 \expndtw0\charscalex101 Only the bills rediscounted abroad \u8
216?with recourse\u8217? basis and\par\pard\qj \li4461\ri928\sb2\sl-280\slmult0
\up0 \expndtw-3\charscalex100 outstanding will be taken into account for the pur
pose of export \line \up0 \expndtw-3\charscalex100 credit performance. The bi
lls rediscounted abroad \up0 \expndtw-3\charscalex100 \u8216?without \par\pard
\ql \li4461\sb4\sl-276\slmult0 \up0 \expndtw-5\charscalex100 recourse\u8217? wil
l not count for the export credit performance. \par\pard\ql \li3876\sb244\sl-276
\slmult0\tx4461 \up0 \expndtw-5\charscalex100 (ii) \tab \up0 \expndtw-3\charscal
ex100 Bills rediscounted \u8216?with recourse\u8217? in the domestic market coul
d \par\pard\qj \li4461\ri929\sb1\sl-280\slmult0 \up0 \expndtw0\charscalex101 get
reflected only in the case of the first bank discounting the \line \up0 \expndt
w0\charscalex101 bills as that bank alone will have recourse to the exporter and
\line \up0 \expndtw0\charscalex103 the bank rediscounting will not reckon the a
mount as export \line \up0 \expndtw-3\charscalex100 credit. \par\pard\li1463\sb0
\sl-299\slmult0\par\pard\li1463\sb0\sl-299\slmult0\par\pard\li1463\sb145\sl-299\
slmult0\fi0\tx2194 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf2\f3\fs26 3\t
ab \up0 \expndtw-3\charscalex100 INTEREST ON EXPORT CREDIT\par\pard\li1463\sb0\s
l-299\slmult0\par\pard\li1463\sb70\sl-299\slmult0\fi731\tx2925 \up0 \expndtw-3\c

harscalex100 \ul0\nosupersub\cf3\f4\fs26 3.1\tab \up0 \expndtw-3\charscalex100 \
ul0\nosupersub\cf5\f6\fs26 Interest Rate Structure on Export Credit in Foreign C
urrency\par\pard\ql \li2925\ri928\sb171\sl-280\slmult0\tx3657\tx3657\tx3657\tx36
57 \up0 \expndtw0\charscalex105 \ul0\nosupersub\cf1\f2\fs24 3.1.1\ul0\nosupersub
\cf6\f7\fs24 \ul0\nosupersub\cf1\f2\fs24 In respect of export credit to expor
ters at internationally competitive \line\tab \up0 \expndtw0\charscalex103 rates
under the schemes of 'Pre-shipment Credit in Foreign Currency' \line \tab \up0
\expndtw0\charscalex102 (PCFC) and 'Rediscounting of Export Bills Abroad' (EBR),
banks are \line \tab \up0 \expndtw0\charscalex104 permitted to fix the rates of
interest with reference to ruling LIBOR, \line \tab \up0 \expndtw-3\charscalex1
00 EURO LIBOR or EURIBOR, wherever applicable, as under: \par\pard\ql \li6000\sb
0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\
sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl
-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-2
76\slmult0 \par\pard\ql\li6000\sb112\sl-276\slmult0 \up0 \expndtw-3\charscalex10
0 12
7;32768}}
g13}{\bkmkend Pg13}\par\pard\li5065\sb0\sl-230\slmult0\par\pard\li5065\sb0\sl-23
0\slmult0\par\pard\li5065\sb0\sl-230\slmult0\par\pard\li5065\sb0\sl-230\slmult0\
par\pard\li5065\sb0\sl-230\slmult0\par\pard\li5065\sb184\sl-230\slmult0\fi0\tx89
65 \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf10\f11\fs20 Type of Credit\ta
b \up0 \expndtw-3\charscalex100 Interest Rate\par\pard\li3950\sb4\sl-230\slmult0
\fi4993 \up0 \expndtw-2\charscalex100 (percent p.a.)\par\pard\li3950\sb176\sl-27
6\slmult0\fi0\tx4535 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (
i)\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Pre-shipment Cr
edit\par\pard\li3950\sb177\sl-276\slmult0\fi585\tx8434 \up0 \expndtw-2\charscale
x100 \ul0\nosupersub\cf1\f2\fs24 (a) Upto 180 days\tab \up0 \expndtw-2\charsca
lex100 Not exceeding 1% over\par\pard\li4535\sb4\sl-276\slmult0\fi3885 \up0 \exp
ndtw-3\charscalex100 LIBOR/EURO LIBOR/\par\pard\li4535\sb4\sl-276\slmult0\fi4512
\up0 \expndtw-3\charscalex100 EURIBOR\par\pard\sect\sectd\sbknone\cols2\colno1\
colw8203\colsr160\colno2\colw3397\colsr160\ql \li4535\sb177\sl-276\slmult0 \up0
\expndtw-1\charscalex100 (b) Beyond 180 days and upto 360\par\pard\ql \li5061\
sb5\sl-276\slmult0 \up0 \expndtw-3\charscalex100 days\par\pard\column \ql \li54\
sb177\sl-276\slmult0 \up0 \expndtw-3\charscalex100 Rate for initial period of\pa
r\pard\ql \li20\ri861\sb1\sl-280\slmult0\fi139\tx124\tx364 \up0 \expndtw-3\chars
calex100 180 days prevailing at \line\tab \up0 \expndtw-3\charscalex100 the time
of extension + \line \up0 \expndtw-3\charscalex100 2.0 percentage points i.e. \
line\tab \up0 \expndtw-3\charscalex100 (i) (a) above + 2.0 \par\pard\sect\sectd\
sbknone \li3950\sb177\sl-276\slmult0\fi0\tx4535 \up0 \expndtw-2\charscalex100 (i
i)\tab \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf7\f8\fs24 Post-shipment C
redit\par\pard\sect\sectd\sbknone \li3950\sb177\sl-276\slmult0\fi585\tx8434 \up0
\expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (a) On demand bills for
transit\tab \up0 \expndtw-2\charscalex100 Not exceeding 1% over\par\pard\sect\se
ctd\sbknone \li3950\sb4\sl-276\slmult0\fi1115\tx8420 \up0 \expndtw-2\charscalex1
00 period (as specified by FEDAI)\tab \up0 \expndtw-2\charscalex100 LIBOR/EURO L
IBOR/\par\pard\ql \li9046\sb1\sl-261\slmult0 \up0 \expndtw-3\charscalex100 EURIB
OR \par\pard\ql \li4535\ri3516\sb184\sl-280\slmult0\tx5065\tx5065\tx5065\tx5065\
tx5065 \up0 \expndtw0\charscalex100 (b) Against usance bills (credit for \line
\tab \up0 \expndtw-1\charscalex100 total period comprising usance \line \tab \up
0 \expndtw-2\charscalex100 period of export bills, transit \line \tab \up0 \
expndtw0\charscalex100 period as specified by FEDAI, \line \tab \up0 \expndtw0\c
harscalex105 and grace period, wherever \line \tab \up0 \expndtw-5\charscalex
100 applicable) \par\pard\li5046\sb188\sl-276\slmult0\fi0\tx8434 \up0 \expndtw-3
\charscalex100 Upto 6 months \ul0\nosupersub\cf8\f9\fs24 from the date\tab \up0
\expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 Not exceeding 1% over\par\p
ard\li5046\sb4\sl-276\slmult0\fi0\tx8420 \up0 \expndtw-3\charscalex100 \ul0\nosu
persub\cf8\f9\fs24 of\ul0\nosupersub\cf1\f2\fs24 \ul0\nosupersub\cf8\f9\fs24 sh
ipment\tab \up0 \expndtw-3\charscalex100 \ul0\nosupersub\cf1\f2\fs24 LIBOR/EURO
LIBOR/\par\pard\li3950\sb5\sl-276\slmult0\fi5097 \up0 \expndtw-2\charscalex100 E
URIBOR\par\pard\li3950\sb177\sl-276\slmult0\fi585\tx8413 \up0 \expndtw-2\charsca
lex100 (c) Export bills (demand or\tab \up0 \expndtw-2\charscalex100 Rate for
(ii) (b) above +\par\pard\li3950\sb4\sl-276\slmult0\fi1115\tx8542 \up0 \expndtw2\charscalex100 usance) realised after due date\tab \up0 \expndtw-2\charscalex10
0 2.0 percentage points\par\pard\li3950\sb5\sl-276\slmult0\fi1115 \up0 \expndtw2\charscalex100 but upto date of crystillisation\par\pard\li3950\sb177\sl-276\sl
mult0\fi0\tx4535 \up0 \expndtw-2\charscalex100 (iii)\tab \up0 \expndtw-2\charsca
lex100 \ul0\nosupersub\cf7\f8\fs24 Export Credit Not Otherwise\par\pard\li3950\s
b4\sl-276\slmult0\fi585 \up0 \expndtw-2\charscalex100 Specified (ECNOS)\par\pard
\li3950\sb177\sl-276\slmult0\fi585\tx9303 \up0 \expndtw-2\charscalex100 \ul0\nos
upersub\cf1\f2\fs24 (a) Pre-shipment credit\tab \up0 \expndtw-2\charscalex100
Free\ul0\nosupersub\cf8\f9\fs24 *\par\pard\li3950\sb177\sl-276\slmult0\fi585\tx9
304 \up0 \expndtw-2\charscalex100 \ul0\nosupersub\cf1\f2\fs24 (b) Post-shipmen
t credit\tab \up0 \expndtw-2\charscalex100 Free\ul0\nosupersub\cf8\f9\fs24 *\par
\pard\ql \li3950\ri884\sb163\sl-280\slmult0\tx4242 \up0 \expndtw-2\charscalex100
\ul0\nosupersub\cf1\f2\fs24 * Banks are free to decide the rate of interest be
ing rupee credit rate, \line\tab \up0 \expndtw-3\charscalex100 keeping in view t
he PLR and spread guidelines. \par\pard\ql \li6000\sb0\sl-276\slmult0 \par\pard\
ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql
\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\l
i6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6
000\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li600
0\sb0\sl-276\slmult0 \par\pard\ql\li6000\sb0\sl-276\slmult0 \par\pard\ql\li6000\
sb268\sl-276\slmult0 \up0 \expndtw-3\charscalex100 13
7;32768}}
}}
}
}}
}
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}}
{\sp{\sn pVerticies}{\sv 8;3;(0,0);(9,0);(0,1)}}
{\sp{\sn pSegmentInfo}{\sv 2;8;16384;45824;1;45824;1;45824;24577;32768}}
}}
}
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pbxpage\shpbypage\shpwr3\shpwrk0\shpfblwtxt1\shpz41\shplid9
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charscalex100 Date\tab \up0 \expndtw-2\charscalex100 Subject\par\pard\li1404\sb9
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ex100 Interest Rates on Export Credit in Foreign Currency\par\pard\li1404\sb94\s
l-230\slmult0\fi0\tx1915\tx5042\tx6158\tx9923 \up0 \expndtw-2\charscalex100 2.\t
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-2\charscalex100 17.05.2000\tab \up0 \expndtw-2\charscalex100 Pre-shipment Cred
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li1404\sb4\sl-230\slmult0\fi4753 \up0 \expndtw-1\charscalex100 Exporters Operat
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b \up0 \expndtw-1\charscalex100 Export Credit in foreign currency\par\pard\li140
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f Pre-shipment Credit in Foreign\par\pard\li1404\sb4\sl-230\slmult0\fi4753 \up0
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\tx1915\tx5144\tx6158 \up0 \expndtw-2\charscalex100 5.\tab \up0 \expndtw-2\chars
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\slmult0\fi0\tx1915\tx5144\tx6158 \up0 \expndtw-2\charscalex100 6.\tab \up0 \exp
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rscalex101 Export Credit in Foreign Currency under Pre-shipment\par\pard\li1404\
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scalex101 18.04.95\tab \up0 \expndtw0\charscalex101 Pre-shipment Credit in Fo
reign Currency\tab \up0 \expndtw0\charscalex101 (PCFC)\tab \up0 \expndtw0\chars
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tx6157 \up0 \expndtw-1\charscalex100 8.\tab \up0 \expndtw-1\charscalex100 IECD.N
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-1\charscalex100 Relaxations in the Area of Export Packing Credit\par\pard\li140

4\sb94\sl-230\slmult0\fi0\tx1915\tx5144\tx6158 \up0 \expndtw-1\charscalex100 9.\
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charscalex100 14.11.94\tab \up0 \expndtw-1\charscalex100 Sharing of Packing Cred
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07 \up0 \expndtw-1\charscalex100 10.\tab \up0 \expndtw-1\charscalex100 IECD.No.1
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charscalex100 Pre-shipment Credit in Foreign Currency\tab \up0 \expndtw-1\ch
arscalex100 (PCFC)\par\pard\li1404\sb4\sl-230\slmult0\fi4753 \up0 \expndtw-1\cha
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b \up0 \expndtw-1\charscalex100 Pre-shipment Credit in Foreign Currency\tab
\up0 \expndtw-1\charscalex100 (PCFC)\tab \up0 \expndtw-1\charscalex100 -\par\par
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pndtw-2\charscalex100 14.\tab \up0 \expndtw-2\charscalex100 IECD.No.EFD.32/04.02
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\tx6158\tx9998\tx10771 \up0 \expndtw-1\charscalex100 15.\tab \up0 \expndtw-1\cha
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y\tab \up0 \expndtw-1\charscalex100 (PCFC)\tab \up0 \expndtw-1\charscalex100 -\p
ar\pard\li1404\sb3\sl-230\slmult0\fi4753 \up0 \expndtw0\charscalex100 Extension
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calex100 28.02.94\tab \up0 \expndtw0\charscalex100 Pre-shipment Credit in For
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pndtw-3\charscalex100 Bankers Acceptance Facility (BAF)\tab \up0 \expndtw-3\char
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w-3\charscalex100 2.\tab \up0 \expndtw-3\charscalex100 Deeemed exports\par\pard\
li1463\sb259\sl-299\slmult0\fi0\tx2194\tx6582 \up0 \expndtw-3\charscalex100 3.\t
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}}\par\pard\sect\sectd\fs24}

Pre Shipment and Post Shipment Credit

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