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Rate of Interest: The interest payable on pre-shipment finance is usually lower than the normal rate, provided the credit is extinguished by lodging the export bills on remittances from abroad. If the exporter fails to do so they would not be able to avail concessional rate of interest.
In order to avail the packing credit, exporters are expected to make a formal application to the bank giving details of credit requirements along with the required documents.
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Prescribed Manner : The manners in which the export proceeds are to be realised include: i) Payment should be received through an authorised dealer except in cases where genera
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Negotiation of Export Documents under Letters of Credit : Where the exports are under letter of credit arrangements, the banks will negotiate the export bills provided it is drawn
OBJECTIVES OF EXCHANGE CONTROL : Most of the developing countries including India, found it necessary to continue exchange control introduced during the Second World War on a syst
Advance against Incentives : When the value of the materials to be procured for export is more than FOB value of the contract, the exporters may get packing credit advance more th
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