| Date: |
18-06-2015
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| Notification No: |
RBI/2014-15/644 A.P. (DIR Series) Circular No.111
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/644 |
| Subject: |
Exim Bank's GoI supported Line of Credit of USD 100 million to the Government of Socialist Republic of Vietnam
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RBI/2014-15/644
A.P. (DIR Series) Circular No. 111
June 18, 2015
To
All Category - I Authorised Dealer Banks
Madam/Sir,
Exim Bank's GoI supported Line of Credit of USD 100 million
to the Government of Socialist Republic of Vietnam
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
September 15, 2014 with the Government of Socialist Republic of Vietnam, for
making available to the latter, a Line of Credit (LOC) of USD 100 million (USD
One Hundred million) for financing supply of High Speed Patrol Vessel to the
Socialist Republic of Vietnam. The goods, machinery, equipment and services
including consultancy services from India for exports under this Agreement are
those which are eligible for export under the Foreign Trade Policy of the
Government of India and whose purchase may be agreed to be financed by the Exim
Bank under this Agreement. Out of the total credit by Exim Bank under this
Agreement, the goods and services including consultancy services of the value of
at least 75% of the contract price shall be supplied by the seller from India
and the remaining 25% goods and services (other than consultancy services) may
be procured by the seller for the purpose of the eligible contract from outside
India.
- The Credit Agreement under the LOC is effective from May 22, 2015 and the
date of execution of Agreement is September 15, 2014. Under the LOC, the last
date for opening of letters of credit and disbursement will be 48 months from
the scheduled completion date of contract in the case of project exports and
September 14, 2020 (72 months from the execution date of the Credit Agreement)
in the case of other supply contracts.
- Shipments under the LOC will have to be declared on EDF/ SDF Forms as per
instructions issued by the Reserve Bank from time to time.
- No agency commission is payable under the above LOC. However, if required,
the exporter may use his own resources or utilize balances in his Exchange
Earners’ Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such
remittance after realization of full payment of contract value subject to
compliance with the prevailing instructions for payment of agency commission.
- AD Category-I banks may bring the contents of this circular to the notice of
their exporter constituents and advise them to obtain full details of the Line
of Credit from the Exim Bank’s office at Centre One, Floor 21, World Trade
Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to
www.eximbankindia.in.
- The Directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(B. P. Kanungo)
Principal Chief General Manager
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