RBI/2018-19/75
A.P. (DIR Series) Circular No. 14
November 15, 2018
All Category – I Authorised Dealer Banks
Madam/Sir
Exim Bank's Government of India supported Line of Credit of USD 3.5 million to the Government of the Republic
of Suriname
Export-Import Bank of India (Exim Bank) has entered into an agreement dated June 20, 2018 with the
Government of the Republic of Suriname for making available to the latter, a Government of India supported Line of Credit (LoC)
of USD 3.5 million (USD Three million and five hundred thousand only) for the purpose of financing the servicing and maintenance
of 3 (three) Chetak helicopters in the Republic of Suriname. Under the arrangement, financing of export of eligible goods and services
from India, as defined under the agreement, would be allowed subject to their being 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 October 23, 2018. Under the LoC, the terminal utilization period is 60 months after
the scheduled completion date of the project.
3. Shipments under the LoC shall be declared in 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 his own resources or
utilize balances in his 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
(R K Moolchandani)
Chief General Manager
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