Advance Against Export Incentives

 

Advance Against Export Incentives

 

Advance Against Export IncentivesAdvances against export incentives are sanctioned by bank both at pre-shipment and post-shipment stage. Advance under this category is sanctioned when the exporter has to receive the duty drawback incentive from Government, refund of customs and excise duty and differential between the indigenous and international prices of raw materials. Normally, in such case, bank gets power of attorney executed by the exporter in favor of bank and registers with the concerned authority such as Director General of Foreign Trade, Commissioner of Customs etc. Bank sanctions this type of advance only when the bank grants other facilities to the same exporter.

 

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