Export of goods

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

SAKSHI

SAKSHI (Querist)
Follow

09 January 2012 is there any limit on trade discount in case of export of goods?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

10 January 2012 After shipment of goods, the exporter may submit the export bill to its bank for discounting/ purchase. This bill discounting facility may be a sub-limit to packing credit or may be a separate limit depends on the banks sanctioning authority.

In bill discounting, bank buys the export bills (i.e. bill of exchange/promissory note) before it becomes due for payment. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill till it is due for payment.

Read the link:

https://www.rbi.org.in/scripts/ECMUserView.aspx?Id=30&CatID=10

https://www.eximguru.com/exim/reserve-bank/fedai-rules/rules-2-export-transactions.aspx

https://business.gov.in/importexport/procedureexport.php

if you have any query regarding the captioned subject ask ...

SAKSHI

SAKSHI (Querist)
Follow

10 January 2012 is there any limit on trade discount to be provided in case of export of goods????

SAKSHI

SAKSHI (Querist)
Follow

10 January 2012 is there any limit on trade discount to be provided in case of export of goods????

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

12 January 2012 it depends on agreement between buyer and seller before the consignment.

regards,

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now