Page 268 - International Marketing

NPP

270 International Marketing BRILLIANT'S

5. Partnership deed in case of partnership firm, Memorandum and
Article of Association and certificate of incorporation and of com-
mencement of business in case of a company.
6. Copy of board resolution, in case of a company, to open a bank
account.
7. Letter of authority to operate the account.
8. Audited financial statements of the past three to five years.
9. Copy of Registration-cum-membership certificate (RCMC)
10. Appropriate policy or guarantee from ECGC.
11. Any other document required by the bank.
Types of Export Finance
The export finance can be classified into two types, viz,
1. Pre-shipment finance
2. Post-shipment finance
1. Pre-shipment Finance
Pre-shipment finance is also referred as "packing credit". It is work-
ing capital finance provided by commercial banks to the exporter prior to
shipment of goods. The finance required to meet various expenses before
shipment of goods is called pre-shipment finance or packing credit.
"Financial assistance extended to the exporter from the date of re-
ceipt of the export order till the date of shipment is known as pre-shipment
credit". Such finance is extended to an exporter for the purpose of procur-
ing raw materials, processing, packing, transporting, warehousing of goods
meant for exports.
Exporters can get pre-shipment credit from:
 The Indian Commercial Banks
 The Branches of Foreign Commercial Banks in India
Importance
Pre-shipment finance is generally granted for the following purposes:
1. To acquire raw-materials, components, machinery, equipments
and technology required for export production.
2. To improve quality of goods so as to conform to international
standards.
3. To adapt product to the requirements of foreign markets, making
improvements in the existing products, product addition and prod-
uct extension.
4. To conform to international packing and packaging standards,
labeling and marking, etc.