RBI Export Credit Timelines: Latest Position on Pre-Shipment and Post-Shipment Credit

1. Background

Exporters often face delays in shipment execution and realisation of export proceeds due to global supply chain disruptions, geopolitical uncertainties, and extended overseas payment cycles.
To ease liquidity pressure on exporters and ensure uninterrupted credit flow, the Reserve Bank of India has periodically reviewed and rationalised timelines for export credit.

Under the latest trade relief measures, RBI has provided significant relaxation in the maximum tenor of export credit, covering both pre-shipment (packing credit) and post-shipment credit.

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2. Latest RBI Position – Export Credit Timelines

2.1 Pre-Shipment Credit (Packing Credit) – Maximum Period

• Up to 450 days
• Applicable to:
  • INR Packing Credit
  • Foreign Currency Packing Credit
• Period counted from:
  • Date of advance
• Purpose:
  • Procurement, processing, manufacture, and packing of export goods
• Export credit benefits available within this period

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2.2 Post-Shipment Credit – Maximum Period

• Up to 450 days
• Applicable to:
  • Export bills purchased / discounted / negotiated
• Period counted from:
  • Date of shipment, or
  • Date of negotiation / purchase of export documents
• Eligible for export credit treatment within 450 days

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2.3 Extension – Key Clarification

• Pre-shipment and post-shipment credit:
  • Have independent timelines
  • Not clubbed together
• Each can separately run up to 450 days
• Export credit status continues only within the prescribed limit

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3. Earlier RBI Position (Before 450-Day Relaxation)

3.1 Pre-Shipment Credit (Packing Credit)

• Maximum period: 360 days
• Initially sanctioned for:
  • Normally 180 days
• Extensions permitted:
  • Within 360 days only
• Beyond 360 days:
  • Credit ceased to qualify as export credit
  • Normal domestic interest rates applied

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3.2 Post-Shipment Credit

• Maximum period: 180 days
• Counted from:
  • Date of shipment / negotiation
• Independent of pre-shipment credit
• Beyond 180 days:
  • Generally treated as non-export / domestic credit
  • Subject to normal prudential norms

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4. Capital Goods vs Non-Capital Goods – Export Credit Perspective

4.1 Non-Capital Goods (Regular Merchandise Exports)

• Pre-shipment credit:
  • Earlier: Up to 360 days
  • Latest: Up to 450 days
• Post-shipment credit:
  • Earlier: Up to 180 days
  • Latest: Up to 450 days

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4.2 Capital Goods Exports

• Usually involve:
  • Long manufacturing cycles
  • Deferred payment terms
• RBI permits:
  • Longer post-shipment credit periods
  • Based on:
    • Export contract terms
    • Usance / deferred payment structure
• Still subject to:
  • Export proceeds realisation rules
  • Bank’s internal credit policy

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5. Deemed Exports – Credit Treatment

• Deemed exports are eligible for export credit
• Characteristics:
  • No physical shipment outside India
• Pre-shipment credit:
  • Allowed based on confirmed supply contracts
• Post-supply credit:
  • Linked to:
    • Payment cycle
    • Refund / subsidy receivable
• Timelines governed by:
  • RBI instructions
  • DGFT provisions
  • Bank-specific policies

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6. Other Export Categories

6.1 Service Exports

• Export credit permitted
• Tenor aligned with:
  • Contractual payment terms
  • Realisation timeline

6.2 Project Exports

• Credit period linked to:
  • Project milestones
  • Deferred payment schedules
• Longer tenors allowed on a case-to-case basis

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7. Key Takeaways

• Latest RBI relaxation allows both pre-shipment and post-shipment export credit up to 450 days independently.
• Earlier limits were 360 days for pre-shipment and 180 days for post-shipment credit.
• Capital goods, deemed exports, and project exports may have extended timelines, subject to conditions.
• Export credit status is available only within RBI-prescribed periods.

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