Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



Published on

Import Export Procedure

Published in: Business, Economy & Finance
  • Be the first to comment


  1. 1. IMPORT- EXPORT PROCEDURE(601) TY BBM(IB) Harjot Wasu(39) Ishan Akshat(36) Sadiya Shaikh(11) Sagar Chawla(10)
  2. 2. What is ECGC? • Export Credit Guarantee Corporation of India Limited. • Established in the year 1957 by the Government of India. • An export promotion organization which functions under Ministry of Commerce & Industry, Department of Commerce, Government of India.
  3. 3. ABOUT ECGC • Seventh largest credit insurer of the world in terms of coverage of national exports. • The present paid-up capital of the company is Rs.1000 crores. • Authorized capital Rs.1000 crores.
  4. 4. Functions of ECGC • Provides a range of credit risk insurance covers to exporters against loss in export of goods and services. • Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them. • Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.
  5. 5. Foreign buyer unable to pay Protracted Default of Buyers Political & Economic changes Outbreak of war or civil war Risk Associated With Exports Risk Of Insolvency Balance of payment problems Coup or insurrection
  6. 6. ECGC Policies Special Schemes Standard Policy Specific Policy For short term shipments (180 Days) For exports under Deferred Payments, Project Exports, Service exports Financial Guarantees to Banks For Giving credit to exporters (Transfer Guarantee ) To protect Banks Issuing L/C, Confirming L/C, Insurance Cover, Line of Credit, Overseas Investment Insurance & Exchange Fluctuation Risk Insurance
  7. 7. Standard Policy-Products • Small Exporters Policy Period of Policy: Twelve months as against 24 months in the case of Standard Policy. Minimum Premium: Premium payable will be determined on the basis of projected exports on an annual basis subject to a minimum premium of Rs. 2000/- for the policy period
  8. 8. • Export Turnover Policy : Turnover policy is a variation of the standard policy for the benefit of large exporters who contribute not less than Rs.10 lacs per annum towards premium. Thus all the exporters who will pay a premium of Rs.10 lacs in a year are entitled to avail of it.
  9. 9. Specific Shipment Policy Products • Short Term (SSP-ST) • Export (Specific Buyers) Policy • Specific Shipment (Comprehensive Risks) Policy • Specific Shipments (Political Risks) Policy
  10. 10. Service Policy – Products • Specific Services Contract (Comprehensive Risks) Policy • Specific Services Contract (Political Risks) Policy • Software Project Policy • IT-enabled Services (Specific Customer) Policy • Construction Works Policy
  11. 11. Guarantees to Banks Packing Credit Guarantee • It helps the exporter to obtain better facilities from their bankers. • The Guarantees assure the banks that, in the event of an exporter failing to discharge his liabilities to the bank, ECGC would make good a major portion of the bank's loss. • The bank is required to be co-insurer to the extent of the remaining loss
  12. 12. Export Finance Guarantee • This guarantee covers post-shipment advances granted by banks to exporters against export incentives receivable in the form of cash assistance, duty drawback, etc. • The premium rate for this guarantee is 7 paisa per Rs.100 per month and the cover is 75 percent.
  13. 13. Special schemes • Transfer Guarantee • Overseas Investment Guarantee • Exchange Fluctuation Risk Cover
  14. 14. Application Process: ECGC Application to the ECGC along With Rs. 10,000 as initial premium A statement to be submitted to the ECGC Every month along with last month’s Statements & the monthly insurance Premium cheque (mandatory) The list of exports also includes the value of export Shipments & insurance premium to be paid This is the general process to avail the services of ECGC
  15. 15. Contd… • Application is to be made to ECGC in case of nonreceipt of payment within 4 months from the due date • Documents required as proof – E-mails – Faxes – Reminders sent through banking channel In case of suspicion or fraud, ECGC can blacklist the importer or exporter
  16. 16. THANK YOU