ECGC Export Credit &

Guarantee Corporation
Every

export transaction carry

substantial risks which includes both
commercial and political risk in nature.
So Government of India has established
ECGC, under administrative control of the
Ministry of Commerce.
Suitable polices are adopted with regard
to export operations
It also provides financial guarantees and
exporters for exports against deferred
credit payment terms.
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Types of ECGC
Standard

Policies
Specific policies
Special Schemes
Financial guarantees

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Standard Policies
Four

types

Shipment (Comprehensive risk)Policy

Shipment(Political risk) Policy
Contract(Comprehensive risk)Policy
Contract(Political risk) Policy

Comprehensive risk covers both

political and commercial risk

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Risk covered
Commercial Risk
Insolvency

of the buyer
Buyers protracted default to pay
for goods accepted by him
Buyers failure to protect goods
subject to certain conditions

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Political risks
Restrictions

on remittances by the
government in the buyers country
Govt action which may delay or block
payments to the exporter
War revolution or civil disturbances in the
buyers country
Cancellation of export license or cancellation
of valid import license in buyers country
Payment of additional handling, transport or
insurance charges occasioned by
interruption of voyage and cannot be
recovered from buyer
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Risk not covered

Commercial

disputes raised by

the buyer
Causes inherent in the nature of
the goods
Insolvency or default of any
agent of the exporter or
collecting bank
Loss or damage to goods which
can be covered by commercial
insurers
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Specific Policy
Contracts

for export of capital goods

or turnkey projects or construction
works or rendering services abroad
are insured by ECGC thro specific
policies on case to case basis
All contracts exceeding Rs1 crore get
approval from Working Group
consisting of representatives form RBI,
EXIM Bank and ECGC
It is named as In clearance Principle
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Special policies
Construction

works policy
Policy for consignment exports
Services policy
Manufacturers credit insurance
policies
Exporters credit insurance policy
Market development policies

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Financial guarantees
Packing

credit guarantee
Post shipment export credit
guarantee
Export finance guarantee
Export production finance
guarantee
Export performance guarantee
Transfer guarantee
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Institutional support for export

finance in India
OBJECTIVES:
To

simulate & support export effect in the

country
Help Exporters develop particular product &
commodities for export
Establish incentives to enable self sustenance
in international market
Develop guidelines, principles & policies for
country forex administration
Establish laws for smoothness of international
business
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Ministry

of commerce & Industry

Director General of Foreign trade
Commodity Boards
Export promotion Council
Service Institutes
Export inspection council
ECGC
Directorate general of commercial
intelligence and statistics

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India

Trade Promotion Organizations

Federation of Indian Exporters
Organization
EXIM Bank
State Trading Corporation of India Ltd
Government Trade Representatives
Freight Investigation Bureau
Customs and Central Excise
Department
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RESOURCES
1.Export Management Khurana
2.http://en.wikipedia.org/wiki/Expor
t_Credit_Guarantee_Corporation_
of_India

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