Question

      Packing credit limits are granted

    _________
    A to cover specifically packing charges incurred for goods meant for export Correct Answer Incorrect Answer
    B against LC or firm orders Correct Answer Incorrect Answer
    C against duly packed goods stored in warehouse Correct Answer Incorrect Answer
    D to an importer in a foreign country in respect of goods exported from India Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Pre-shipment / Packing Credit ' means any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment / working capital expenses towards rendering of services on the basis of letter of credit opened in his favour or in favour of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods / services from India or any other evidence of an order for export from India having been placed on the exporter or some other person, unless lodgement of export orders or letter of credit with the bank has been waived.

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