Post shipment advance (Rupees)
Post shipment advance (Rupees) can mainly be Export bills Purchased / Discounted / Negotiated, Advances against bills for Collection & Advances against Duty Drawback Receivable from Govt. It is to be liquidated by proceeds of export bills received from abroad or out of balances in EEFC a/c.
The borrower must have held an IEC Code.
The Shipping documents along with GR form (in which value of export duly certified by custom authority) must be submitted to Authorised Dealer within 21 days from date of shipment.
If it is Rupee finance, bill is to be Purchased/discounted/negotiated at Bill Buying Rate. Concessional rate of Interest is available for first 90 days and maximum 180 days.
In case of Demand bill (Bills drawn on Sight) , the period of advance shall be Normal Transit Period (NTP) as specified by FEDAI (25 Days from days of handling). Here, documents against payment are Purchased.
In case of Usance Bills (bills drawn on Usance), credit can be granted for a maximum duration of 365 days from date of shipment inclusive of NTP and Grace period. Concessional rate of Intt should not exceed 180 days from date of shipment. Here, documents against Acceptance are Discounted.
Bills drawn on LC is Negotiated.