A. P. (DIR Series) Circular No. 54

February 26, 2009

To
All Category - I Authorised Dealer Banks
Madam / Sir,

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated January 18, 2008 with the Government of the Gabonese Republic, making available to the latter, a Line of Credit (LOC) of USD 14.50 million (USD fourteen million five hundred thousand) for financing export of goods from India in connection with housing project to be set up in the Gabonese Republic. The goods 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, the goods and services of the value of at least 65 per cent of the contract price shall be supplied by the seller from India, and the remaining 35 percent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India.

2. The Credit Agreement under the LOC is effective from January 1, 2009 and date of execution of Agreement is January 18, 2008. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of the housing project.
   
3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by Reserve Bank from time to time.
   
   
4. No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances of his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category - l (AD Category -l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing 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 Line of Credit from Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www. eximbankindia. in.
   
   
6. The directions contained in this circular have been issued under sections 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.