RBI/2017-18/124 A.P. (DIR Series) Circular No.16
January 25th, 2018
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of Credit of USD 100 million
to the Government of the Republic of Kenya
Export-Import Bank of India (Exim Bank) has entered into an agreement dated
January 11, 2017 with the Government of the Republic of Kenya for making
available to the latter, a Government of India supported Line of Credit (LOC) of
USD 100 million (USD One Hundred million only) for agricultural mechanization
project in Kenya. Under the arrangement, financing export of eligible goods and
services from India would be allowed 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. The goods include plant,
machinery and equipment and services include consultancy services. 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 January 01, 2018. 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 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 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 J K Pandey Chief General Manager
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