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Advance against Bills Sent on Collection : Post-shipment finance is granted against bills sent on collection basis in the following situations:
i) When the accommodation available under the foreign bills purchase limit is exhausted
ii) When some export bills drawn under L/C have discrepancies
iii) Where it is customary practice in the particular line of trade and in the case of exports to Under the above situation, the bank may send the bill on collection basis and finance the exporter to some extent out of the total bill amount. The amount advanced will be liquidated out of the export proceeds of the export bill and the balance paid to the exporter.
Exporters may avail themselves on the forward exchange facility where they do not wish to be subjected to exchange risk on account of the new procedures for overdue export bills.
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Compliance with Laws: Every exporter or importer shall comply with the provisions of the Foreign Trade (Development and Regulation) Act, 1992. They will comply with the provisions
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