Reserve Bank Of India
A.P. (DIR Series) Circular No.62
December 18, 2012
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit of USD 16.88 million
to the Government of the Republic of Gambia
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October
19, 2012 with the Government of the Republic of Gambia, making available to the
latter, a Line of Credit (LOC) of USD 16.88 million (USD sixteen million eight
hundred and eighty thousand) for financing eligible goods, services, machinery
and equipment including consultancy services from India for the purpose of
completion of national Assembly Building complex in Gambia. 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 65 per cent of the contract price shall be supplied by
the seller from India and the remaining 35 percent goods and 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 December 4, 2012 and the
date of execution of Agreement is October 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 (October 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//2012-13/341