RBI/2009-10/294
A.P. (DIR Series) Circular No.29
January 28, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 40 million
to the Government of the United Republic of Tanzania
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated May 28,
2009 with the Government of the United Republic of Tanzania making available to
the latter, a Line of Credit (LOC) of USD 40 million (USD forty million only)
for financing eligible goods and services including consultancy services from
India for the purpose of financing export of tractors, pumps and equipments. 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 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 per cent 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 January 11, 2010 and
date of execution of Agreement is May 28, 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 (May 27, 2015) from the execution date of the Credit Agreement in case of
other supply contracts.
- Shipments under the LOC 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 or log on to
www.eximbankindia.in.
- 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,br />
(Salim Gangadharan)
Chief General Manager-in-Charge