Export Import

Post Shipment
Finance
Group A4

Index
1.Definition.
2.Importance.
3.Features.
4.Procedure.
5.Documents.
6.Types/Methods.

Definition
Post-shipment finance (short-term) refers to credit
extended to the exporters after the shipment of
goods for meeting working capital requirements.
Post-shipment credit (long term) is given to

exporters on deferred payments terms for the

period of over one year.
Granted by commercial banks after shipment of

goods.

Importance
Pay commission & brokerage.
Pay for port authorities.
Pay insurance charges & ECGC premium.
Pay custom duties, port charges & export duty,
marine freight & other shipping charges.
Undertake promotion activities & market
survey abroad.
Pay for participation in international trade fairs
& exhibitions.
Meet Expenses for after sales service.

Features
Eligibility.
Purpose.
Documentary evidence.
Forms of Finance.
Amount of Finance.
Period of Finance.
Rate of Interest.
Monitoring the use of advance.
Repayment of loan.

Procedure
Submission of Application.
Processing of the Application.
Sanctioning of Loan.
Loan Agreement & Disbursement of the
Loan.
Maintenance of Accounts.
Monitoring the Use of Loan.

Important Documents
required
Letter of credit.
Invoice.
Bill of lading.
Other essential documents.
Certificate of origin.
Packing list.
Dock/Warehouse Receipt
Insurance Certificate

Types of Post shipment

Finance
Export Bills negotiated under L/C.
Purchase/Discounting of Export Bills.
Advance against Bills sent for collection .

Advance against Goods sent on consignmen

basis.

Types (contd.)
Advance against Undrawn Balances.
Advance against Retention Money.
Advance against deemed exports.
Advances against Incentives.
Advance against Deferred Payments.

Done ByMeghna Dangayach

Bhumi Harwani
Ketki Patil
Krutika Rathod
Priyanka Shah
Shweta Vyawahare