1. PRE-SHIPMENT EXPORT CREDIT 1 1.1 Pre-shipment Credit in Foreign Currency (PCFC) 1 1.1.1 Definition 1 1.1.2 General 1 1.1.3 Scheme 1 1.1.4 Source of Funds for Banks 2 1.1.5 Spread 3 1.1.6 Period of Credit 3 1.1.7 Disbursement of PCFC 4 1.1.8 Liquidation of PCFC Account 4 1.1.9 Cancellation/Non-execution of Export Order 5 1.1.10 Running Account Facility for All Commodities 5 1.1.11 Forward Contracts 6 1.1.12 Sharing of EPC under PCFC 6 1.1.13 Supplies from One EOU/EPZ/SEZ Unit to Another EOU/EPZ/ SEZ Unit 7 1.1.14 Deemed Exports 7 1.1.15 Refinance 8 1.1.16 Other Aspects 8 1.2 Diamond Dollar Account (DDA) Scheme 8
2. POST-SHIPMENT EXPORT CREDIT 9 2.1 Definition 9 2.2 Rediscounting of Export Bills Abroad Scheme (EBR) 9 2.2.1 General 9 2.2.2 Scheme 9 2.2.3 Eligibility Criteria 10 2.2.4 Source of On-shore Funds 10 2.2.5 Facility of Rediscounting ‘with recourse’ and ‘without recourse’ 11 2.2.6 Accounting Aspects 11 2.2.7 Restoration of Limits and Availability of Export Benefits such as EEFC Account 12 2.2.8 ECGC Cover 12 2.2.9 Refinance 12 2.2.10 Export Credit Performance 12
3. GOLD CARD SCHEME FOR EXPORTERS 13 4. INTEREST ON EXPORT CREDIT 13 4.1 Interest Rate Structure on Export Credit in Foreign Currency 13 * Appendix 15 * Index to key words 16
1. PRE-SHIPMENT EXPORT CREDIT
1.1 Pre-shipment Credit in Foreign Currency (PCFC)
1.1.1 Definition
'Pre-shipment credit' means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of letter of credit opened in his favour or in favour of some