RBI/2016-17/247
A.P. (DIR Series) Circular No. 38
March 09th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 92.18 million
to the Government of Tanzania
Export-Import Bank of India (Exim Bank) has entered into an agreement on July
10, 2016 with the Government of Tanzania for making available to the latter, a
Government of India supported Line of Credit (LOC) of USD 92.18 million (USD
Ninety two million one hundred eighty thousand only) for financing
rehabilitation and improvement of water supply system in Zanzibar in Tanzania.
The goods including plant, 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, goods
and 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 per cent of 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 February 20, 2017.
Under the LOC, the terminal utilization period is 60 months after the scheduled
completion date of the project.
3. Shipments under the LOC will have to be declared on Export Declaration
Form 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 its own resources or utilize balances in its Exchange
Earners’ Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such
remittance after realization of full payment of contract value subject to
compliance with the extant 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 LOC
from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or from their website
www.eximbankindia.in
6. The directions contained in this circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999) and are without prejudice to permissions / approvals, if any, required
under any other law.
Yours faithfully,
(J. K. Pandey)
Chief General Manager
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