Pre-Shipment Export Credit Program

What is the Pre-Shipment Export Credit?

In the scope of the pre-shipment export credit (PSEC) we are providing credits to intermediating banks with the purpose to finance in the scope of the following issues and export transactions:

• Exporters and manufacturers of export goods (final manufacturers only), expect goods, which export is legally prohibited, in return to an outright export undertaking of goods with Turkish origin, foreign trade stock corporations (FTSC) and sectorial foreign trade companies (SFTC) are excluded,
• Exporters and manufacturers of export goods (final manufacturers only) with residence in the North-Cyprus Turkish Republic (KKTC), expect goods, which export is legally prohibited, in return to an outright export undertaking of goods with North-Cyprus Turkish Republic (KKTC) origin,
• Natural or legal persons, who possess the production and purchase-sale license for free trade zone within the bounds of the Turkish Republic, expect goods, which export is legally prohibited, in return to an outright export undertaking of goods with Turkish origin to other countries outside of Türkiye,
• in return to the export undertaking of the following foreign exchange earning services by companies resident in Türkiye in the scope of the Export Law Number 2017/4, transit trade, sales and delivery transactions, which counts as export and foreign exchange earning services and the official statement regarding to the tax, duties and charges exemption,
  1. Service sales of touristic ventures and travel agencies in the scope of their touristic transactions in return to foreign exchanges,
  2. Over land, navigation or air transport services and activities on conditions that the earned freight charges for international transports in foreign currencies have to be brought to the inland,
  3. Sales of health services to foreigners (diplomatic representatives and members included), tourists or Turkish citizens living abroad, during their destination in Türkiye, on conditions that the service charge is being paid by foreign health insurances in return to foreign currencies,
  4. Foreign exchange earning service projects like construction services, consulting services, software services and engineering services, which are developed for foreign countries,
  5. On conditions that the charges will be paid in foreign exchange, maintenance and repair services supplied in the name of foreign companies in the scope of warranties, maintenance and repair services supplied to ships, airplanes or trucks under foreign flags and purchases of goods (fuel and mineral oil excluded) and services to them,
  6. Purchases of news with or without images to foreign media organs from domestic news agencies.

Who can benefit?

The following persons can benefit from the pre-shipment export credit (PSEC)_

Exporters and manufacturers of export goods (final manufacturers only), exporters and manufacturers of export goods (final manufacturers only) with residence in the North-Cyprus Turkish Republic (KKTC),

Natural or legal persons, who possess the production and purchase-sale license for free trade zone,

In return to the export undertaking of the following foreign exchange earning services by companies resident in Türkiye in the scope of the Export Law Number 2008/6, transit trade, sales and delivery transactions, which counts as export and foreign exchange earning services and the official statement regarding to the tax, duties and charges exemption

Touristic ventures and travel agencies and tour operators,

Companies, which supply international over land, sea and air transports,

Companies, which sale health services to foreigners (diplomatic representatives and members included), tourists or Turkish citizens living abroad, during their destination in Türkiye, on conditions that the service charge is being paid by foreign health insurances in return to foreign exchanges,

Companies, which supply foreign exchange earning service projects like construction services, consulting services, software services and engineering services, which are developed for foreign countries,

Companies, which sale, on conditions that the charges will be paid in foreign exchange, maintenance and repair services supplied in the name of foreign companies in the scope of warranties, maintenance and repair services supplied to ships, airplanes or trucks under foreign flags and purchases of goods (fuel and mineral oil excluded) and services to them,

Companies, which sale news with or without images to foreign media organs from domestic news agencies.

What is the purpose of the product?

In the scope of the pre-shipment export credit program we are supporting our exporters and manufacturers of export goods (final manufacturers only) to develop their export trades, to diversify their product and service ranges, to find new markets for the export goods, the production and the sale of export investment goods and investments abroad, we are meeting the financial needs of our exporters during the pre-shipment period through intermediating banks.

What is the company limit?

In the scope of our pre-shipment export credit program the total principal remnants limit of the TL and foreign exchange credits for one company amounts maximum USD 25.000.000.

The respective company limit amounts;

Pre-shipment export credit attendance TL/PSEC attendance in the scope of foreign exchange credit USD 15 Million.

In the scope of the North-Cyprus Turkish Republic (KKTC) pre-shipment export credit in TL it is limited to 5 Million TL.

What is the threshold?

There is no threshold in the course of the pre-shipment export credit program.

How long is the term?

The term options are being published on our website.

What does it cost?

The interest/dividend rates to be applied on the credit are being determined in regard to the credit term, the credit amount and the currency.

The interest/dividend rates are being published on our website.

The intermediating banks can add introduction fees on the interest and dividend rates for TL credits maximum for 1 (one) year, for foreign exchange credits maximum per year 0,5 (half) points.