Page 57 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes Export Services Group offers variety of advisory and value-added information services
aimed at investment promotion.
Fee-based Export Marketing Services: Bank offers assistance to Indian companies, to enable
them establish their products in overseas markets.
Support Services groups, which include Research & Planning, Corporate Finance, Loan
Recovery, Internal Audit, Management Information Services, Information Technology,
Legal, Human Resources Management and Corporate Affairs.
Some of the Agri Business related Schemes run by EXIM Bank:

The Indian agri sector can avail of a comprehensive range of products and services that Exim
Bank offers. Broadly, these can be classified into three categories:
1. Export Credit: Exim Bank provides pre shipment and post shipment credit in Indian
rupees and foreign currency. Finance is extended for short term i.e. up to 6 months as also
for medium/long term i.e. beyond 6 months for eligible products and projects.
Medium/long term export credit is extended by way of supplier’s credits i.e. through the
Indian exporter with recourse to the exporter or buyer’s credits i.e. directly to the overseas
buyer with no recourse to the Indian exporter. Certain RBI guidelines apply for such
medium/long term export credit.
Exim Bank has been recently permitted by RBI to cover inter alia agricultural commodities
and processed foods under the Lines of Credit. Export contracts under Lines of Credits are
financed without recourse to the exporter i.e. off balance sheet finance whilst the importer
gets credit. Exim Bank extends loans for executing deemed export contracts. Exim Bank
also issues guarantees overseas on behalf of Indian exporters.
2. Finance for Export Oriented Companies: Exim Bank also offers loans for financing Export
Oriented Companies which may be categorized as under:
(a) Project Finance
Finance for new projects, expansion, and modernization projects.

Finance for purchase of equipment both imported as well as indigenous.
Working Capital both short term as well as medium term.
(b) Overseas Investment Finance: Overseas investment by Indian companies may be in
the form of Joint Ventures (JVs) or Wholly Owned Subsidiaries (WOS). Exim Bank
extends term loans against equity contribution/loan extended by Indian companies
to their JVs/WOS. Term finance is provided directly to the JVs/WOS with corporate
guarantee of the Indian promoter companies. Exim Bank can also participate in the
equity of the overseas JV/WOS of the Indian company selectively subject to certain
conditions.
(c) Special Programmes
Export Marketing Finance (Finance for developing strategic forward linkages):
Term loans are extended to important strategic marketing plan covering inter
alia, overseas market research, participating in international trade fairs,
promotion of product, brand positioning, international quality certification,
mirror product adaptation, preoperative expenses for overseas offices,
prospective buyers visits to India, etc.

(i) Export Product Development: Term Loan for product adaptation, pilot
plants, product/process development, etc.

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