RBI/2016-17/278 A.P. (DIR Series) Circular No. 44
April 13th, 2017
To, All Category - I Authorised Dealer Banks Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 31.29
million to the Government of the Republic of Nicaragua
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
September 8th, 2016 with the Government of the Republic of Nicaragua for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 31.29 million (USD Thirty one million two hundred ninety thousand only) for
financing the transmission lines and substations project in the Republic of
Nicaragua. The credit is available for financing export of eligible goods from
India which means any goods and services including machinery and equipment for
the purpose of transmission lines and substation in terms of the Agreement and
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 Agreement under the LOC is effective from March 30th, 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 for export 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 eligible value of export 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, (Deepak Kumar) Chief General Manager
|