7. Packing Credit – A loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing & packing of goods before shipment.
13. Pre shipment credit is issued to that exporter who has the export order in his own name.
14. Repayment of packing credit advance can be only from the proceeds of the bills drawn under the export order or L/C.
15. EXIM Bank has floated a new scheme with the approval of RBI for Indian exporters to enable them to avail of pre shipment in foreign currencies (PCFC)to finance cost of imported inputs for manufacture of export products. PCFC is repaid only with proceeds of the export bill tendered.
16. Finance is available from EXIM Bank for co. executing export contracts involving cycle time exceeding 6 months
17. Export incentives take the form of cash assistance on export of certain items & duty draw-backs i.e. a refund of central excise & custom duties levied on raw materials & components used in the manufacture of exports. Air freight subsidy on the export of certain products.
20. From 270 days to 360 days : subject to the bankFREE ON BOARD (FOB): "Free on board " means that the seller delivers when the goods pass the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. COST, INSURANCE & FREIGHT(CIF):"Cost, insurance and freight " means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer's risk of loss of or damage to the goods during the carriage.
![PRE SHIPMENT FINANCEAcorporate banking product DEFINITION: Funds to cover an exporter’s cost before goods are sent overseas. Pre shipment finance is issued by a financial institution when the seller want the payment of goods before shipment.The main objectives are to enable exporter to: ,[object Object]](https://image.slidesharecdn.com/preshipmentfinanceslidenew-091001091312-phpapp02/85/preshipment-finance-slide-new-1-320.jpg)
