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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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EXPORTS UNDER DEFERRED PAYMENTS : You have learnt that all export proceeds must be surrendered to an authorised dealer within 180 days from the date of shipment. Exporters are r
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