Pre-shipment and post-shipment credit are accessible for e-commerce exports, as clarified by the DGFT

E-commerce exports are eligible for pre-shipment and post-shipment credit, as well as packing credit loans in foreign currency (PCFC), according to the guidelines set by the Reserve Bank of India (RBI). The Directorate General of Foreign Trade (DGFT) has emphasized that such credit facilities should not be withheld from e-commerce exports. In a trade notice issued on Monday, the DGFT urged banking and financial institutions to adhere to the existing RBI guidelines and extend pre-shipment and post-shipment export credit, as well as PCFC, to e-commerce exports. The notice also encourages e-commerce exporters and banks to bring any issues related to availing export credit to the attention of the Directorate.

Addressing concerns raised during discussions on the promotion of cross-border trade in the digital economy, as outlined in the new Foreign Trade Policy 2023, the DGFT engaged with industry representatives, exporters, and relevant departments. Among the issues raised was the perceived lack of pre-shipment and post-shipment export credit for e-commerce exports. Subsequent consultations with the RBI clarified that the 'Master circular-rupee/foreign currency export credit and customer service to exporters' provides a comprehensive framework. This framework allows all eligible exporters, including e-commerce exporters, access to pre-shipment and post-shipment export credit as well as PCFC.