RBI/2008-09/ 502
A.P. (DIR Series) Circular No.68
June 17, 2009.
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit (LOC) of USD 37.65 million
to the Government of the Republic of Cameroon
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated April
20,2009 with the Government of the Republic of Cameroon making available to the
latter, a Line of Credit (LOC) of USD 37.65 million (USD thirty seven million
six hundred fifty thousand ) for financing eligible goods and services including
consultancy services from India for (i) Maize Farm Plantation Project (US $
18.77 million), which envisages purchase of 100 tractors of 60 hp, 200 tractors
of 75 hp, 200 tractors of 90 hp, 500 water cooled irrigation pumps, related
agriculture implements, maize shellers, post harvest equipment as well as
assembling and fabrication units, and (ii) Rice Farm Plantation Project (US $
18.88 million), which envisages purchase of 100 tractors of 60 hp, 400 tractors
of 75 hp and connected agriculture implements and harvesting machines to
Cameroon . The goods and services including consultancy services 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 including consultancy
services of the value of at least 85 per cent of the contract price shall be
supplied by the seller from India, and the remaining 15 percent goods and
services (other than consultancy services) may be procured by the seller for the
purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from May 29, 2009 and date of
execution of Agreement is April 20, 2009. 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 contract(s) in case of project exports and 72
months (April 19, 2015) from the execution date of the Credit Agreement in case
of supply contracts .
- Shipments under the credit will have to be declared on GR / SDF Forms as per
instructions issued by Reserve Bank from time to time.
- 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.
- 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.
- 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.
Yours faithfully,
( D. Mishra )
Chief General Manager