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RBI/2016-17/13
A.P. (DIR Series) Circular No. 02
July 14, 2016
To
All Category - I Authorised Dealer Banks
Madam/Sir,
Exim Bank's GoI supported Line of Credit of USD 86.31
million to Myanma Foreign Trade Bank (MFTB), Myanmar
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
December 11, 2013 with Myanma Foreign Trade Bank (MFTB), Myanmar for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 155 million (USD one hundred fifty five million only) for financing the
procurement of rolling stock, equipment and upgradation of three major railway
workshops in Myanmar. Subsequently, Exim Bank signed First Amendatory Agreement
with MFTB on October 03, 2015, for reducing the value of the LOC from USD 155
million to USD 86.31 million (USD eighty six million three hundred ten
thousand). 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 may be procured by the seller for the purpose of the eligible
contract from outside India.
2. The credit agreement under the LOC is effective from June 27, 2016. Under
LOC, the terminal utilization period is 48 months from scheduled completion date
of contract in case of project export and 72 months from execution of the Credit
Agreement in case of other supply contracts.
3. 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.
4. 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.
5. 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.
6. The Directions contained in this circular have been issued under section
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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