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RBI/2016-17/298
A.P. (DIR Series) Circular No. 46
May 04th, 2017
To,
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Government of India supported Line of Credit of USD 4
million to the Government of the Co-operative Republic of Guyana
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
February 22, 2017 with the Government of the Co-operative Republic of Guyana for
making available to the latter, a Government of India supported Line of Credit
(LoC) of USD 4 million (USD Four million only) for the purpose of financing the
procurement of high capacity fixed and mobile drainage pumps and associated
structures in the Co-operative Republic of Guyana. The credit is available for
financing export of eligible goods from India which means any goods and services
including plant, machinery and equipment for the purpose of high capacity fixed
and mobile drainage pumps and associated structure 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 April 18th, 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
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