DGFT issues notice regarding to extend Pre and Post shipment Export Credit and Packing Credit Loan in Foreign Currency for E-Commerce Exports [Read Notice]
The Directorate General of Foreign Trade (DGFT), vide Trade Notice no. 26/2023 issued extension of Pre Shipment and Post Shipment Export Credit and Packing Credit Loan in Foreign Currency (PCFC) for the E-commerce exports.
In accordance with Chapter 9 of the recently introduced Foreign Trade Policy for 2023, which focuses on 'Facilitating Cross-Border Digital Trade,' discussions were conducted involving industry stakeholders, exporters, and relevant government departments to address unresolved concerns related to E-commerce exports. Among the issues raised was the absence of Pre-shipment and Post-shipment export credit options for E-commerce exports, prompting the authorities to consult with the Reserve Bank of India (RBI) on this matter.
Regarding the discussion with the RBI, it was clarified that the "Master Circular Rupee/Foreign Currency Export Credit and Customer Service to Exporters" provides a comprehensive framework that grants access to Pre-shipment and Post-shipment export credit, as well as Packing Credit in Foreign Currency (PCFC), to all eligible exporters, including E-Commerce Exporters.
Banking and financial institutions are urged to follow the existing RBI guidelines and provide Pre-shipment and Post-shipment Export Credit as well as Packing Credit Loan in Foreign Currency (PCFC) to E-Commerce exports.
If there are any difficulties in accessing such Export Credit, E-Commerce Exporters or banks are encouraged to report these issues to the Directorate for resolution.
The DGFT under the Ministry of Commerce and Industry, through Trade Notice No. 25/2023-24 issued on September 1, 2023, has announced the organization of monthly workshops on E-commerce exports, scheduled for the first week of every month.
To Read the full text of the Notice CLICK HERE
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