Whereas the finance provided after shipment of goods is called post-shipment finance. DEFINITION: Credit facility extended to an exporter from. Post-shipment Export credit facility in banks means finance made to an exporter bank after the shipment of goods or service. The Authorised. Post shipment credit is a loan or advance granted or any other credit provided by the Bank for export of goods/services from India. For demand bills, the period of advance will be the Normal Transit period (as specified by FEDAI).


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Advance against Retention Money: Banks advance against retention money, which is payable within one year post shipment credit date of shipment. Advance against Deferred payments: In case of capital goods exports, the exporter receives the amount from the importer in installments spread over a period of time.

The commercial bank together with EXIM bank do offer advances at concessional rate of interest for days.


Consumer goods are normally sold on short term credit, normally for a period upto days. However, there are cases, especially, in the case of export of capital goods and post shipment credit services; the credit period may extend beyond days.

How the payment is received? Period of financial credit support: The credit extended for financing post shipment credit deferred payment exports is known as Medium Term and Long Term Credit. The medium credit facilities are provided by the commercial banks together with EXIM Bank for a period upto 5 years.

Post-shipment - BNDES

Amount of credit support: Any loan upto Rs. In post shipment credit of contracts above Rs. This facility will be available in all convertible currencies. What is the purpose of this Credit?

Export Post-Shipment Credit

Indian project exporters who are to execute project export contracts overseas secure on cash payment terms or those funded by multilateral agencies will be eligible. The purpose of the new lending program is to give boost to project export efforts of companies with good track record and sound financials.

Exporter bank then extends a without recourse post-shipment finance facility to the exporter and dispatches the export bill to the post shipment credit bank. Pre-acceptance can be obtained for non-LC post shipment credit as well.

What is post shipment credit to exporters?

It must be noted that the scrutiny and validity of an accepted time draft is of prime importance in this type of export finance. Time draft can be presented in the court of law for handling the disputed cases. Advance against export bill sent on collection If the bill or the documents presented under the LC has discrepancies which the exporter does not wish to rectify, the exporter may post shipment credit to dispatch the documents outside the scope of LC, i.

Exporters ho enjoy sanctioned limits or credit line with the banks can request the bank to provide post shipment finance against these limits.

This type of finance is similar to non-LC finance and is granted by the banks with recourse.

Trade Samaritan

Advance against export on consignment basis Consignment in international trade is a variation of the open account method of payment in which payment is sent post shipment credit the exporter only after the goods have been sold by the foreign distributor to the end customer.

One of the government supports to exporters is Duty Draw back. Duty draw back is disbursed by customs department after submission of necessary export documents with customs.