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RBI/2016-17/253
A.P. (DIR Series) Circular No. 40
March 16th, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 50 million to
the Government of Co-operative Republic of Guyana
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
March 16, 2016 with the Government of Co-operative Republic of Guyana for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 50 million (USD Fifty million only) for financing East Bank East Coast Road
Linkage Project in Guyana. 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 March 02, 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 on 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,
(Deepak Kumar)
Chief General Manager
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