Date: |
17-03-2015
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Notification No: |
RBI/2014-15/502 A.P. (DIR Series) Circular No.84
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Issuing Authority: |
RBI
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Type: |
A.P.D.(Series) Circulars
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File No: |
RBI/2014-15/502 |
Subject: |
Exim Bank's Line of Credit of USD 5.0492 million to the Banco Exterior De Cuba
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RBI/2014-15/502
A.P. (DIR Series) Circular No. 84
March 17, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 5.0492 million to the Banco Exterior
De Cuba
Export-Import Bank of India (Exim Bank) has entered into an Agreement dated
September 2, 2014 with the Banco Exterior De Cuba, for making available to the
latter, a Line of Credit (LOC) of USD 5.0492 million (USD Five Million and Forty
Nine Thousand two hundred) for financing the modernization of injectable product
plant in the Republic of Cuba. 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 February 3, 2015
and the date of execution of Agreement is September 2, 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 72 months from the execution date of the Credit Agreement in the
case of 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,
(A.K. Pandey)
Chief General Manager
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