RBI/2014-15/144
A. P. (DIR Series) Circular No. 12
July 23, 2014
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 41.96 million to the Government of the
Republic of Senegal
Export-Import Bank of India (Exim Bank) has entered into an Agreement
dated December 06, 2013 with the Government of the Republic of Senegal for
making available to the latter, a Line of Credit (LOC) of USD 41.96 million (USD
Forty one million and nine hundred and sixty thousand) for financing eligible
goods, machinery, equipment and services including consultancy services from
India for the purpose of financing purchase of setting up of Modern Abattoir,
Meat processing, Cold Storage, Rendering and Tannery Plant and Market Place in
Senegal. 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 per cent
of the contract price shall be supplied by the seller from India and the
remaining 25 percent goods and services may be procured by the seller for the
purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from June 25, 2014
and the date of execution of Agreement is December 06, 2013. Under the LOC,
the last date for opening of Letters of Credit and Disbursement will be 48
months from the scheduled completion date(s) of contract(s) in the case of
project exports and 72 months (December 05, 2019) from the execution date of
the Credit Agreement in the case of supply contracts.
- Shipments under the LOC will have to be declared on GR / 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,
(C. D. Srinivasan)
Chief General Manager