Reserve Bank Of India
A.P. (DIR Series) Circular No.22
August 31, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 20 million
to the Government of the Central African Republic
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated March
19, 2012 with the Government of the Central African Republic, making available
to the latter, a Line of Credit (LOC) of USD 20 million (USD twenty million) for
financing eligible goods, services, machinery and equipment including
consultancy services from India for the development of mining project in Central
African Republic. The goods and services including consultancy services and
equipment 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 75 per cent
of the contract price shall be supplied by the sellers from India and the
remaining 25 percent goods and services (other than consultancy services) may be
procured by the sellers for the purpose of Eligible Contract from outside India.
- The Credit Agreement under the LOC is effective from August 22, 2012 and the
date of execution of Agreement is March 19, 2012. 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 (March 18, 2018) 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
RBI/2012-13/186