RBI/2011-12/138
A.P. (DIR Series) Circular No. 07
August 02, 2011
To
All Authorised Dealer Category -I banks
Madam / Sir,
Exim Bank's Line of Credit of USD 4 million to the Government of the
Co-operative Republic of Guyana
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated July
26, 2010 with the Government of the Co-operative Republic of Guyana, making
available to the latter, a Line of Credit (LOC) of USD 4 million (USD four
million) for financing eligible goods, services, machinery and equipment
including consultancy services to be exported from India for the purpose of
acquiring, installing and commissioning of fixed and mobile irrigation pumps in
Guyana. The goods, services, machinery and equipment 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 for the purpose of Eligible Contract from outside
India.
- The Credit Agreement under the LOC is effective from July 19, 2011
and the date of execution of Agreement is July 26, 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 (July 25, 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,
(Rashmi Fauzdar)
Chief General Manager