RBI/2010-11/231
A.P. (DIR Series) Circular No. 14
October 13, 2010
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 21.72 million
to the Government of the Republic of Ghana
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated May
6, 2010 with the Government of the Republic of Ghana making available to the
latter, a Line of Credit (LOC) of USD 21.72 million (USD twenty one million
seven hundred and twenty thousand) for financing eligible goods and services
including consultancy services from India for (i) improved fish harvesting and
fish processing project, and (ii) waste management equipment and management
support project in the Republic of Ghana. 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 per cent goods and services (other than consultancy services)
may be procured by the seller from outside India for the purpose of Eligible
Contract.
- The Credit Agreement under the LOC is effective from September 3,
2010 and the date of execution of the Agreement is May 6, 2010. 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 the case
of project exports and 72 months (May 05, 2016) from the execution date of
the Credit Agreement in the case of supply contracts.
- Shipments under the LOC will have to be declared on GR/SDF Forms as per
instructions issued by the 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 in 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 the 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,
(G. Jaganmohan Rao)
Chief General Manager