RBI/2009-10/341
A.P. (DIR Series) Circular No. 41
March 05, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 15 million
to the Government of the Republic of Benin
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October
19, 2009 with the Government of the Republic of Benin making available to the
latter, a Line of Credit (LOC) of USD 15 million (USD Fifteen million) for
financing eligible goods, machinery, equipment and services including
consultancy services from India for the purpose of (a) purchase of railway
equipment, (b) purchase of agricultural equipment and (c) conducting feasibility
study for setting up a cyber city in Benin. 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 February 16, 2010 and
date of execution of Agreement is October 19, 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 (October 18, 2015) from the execution date of the Credit Agreement in
case of 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,
Salim Gangadharan
Chief General Manager-in-Charge