Reserve Bank Of India
A.P. (DIR Series) Circular No.77
January 18, 2013
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim Bank's Line of Credit (LOC) of USD 20 million to Nigerian Export-Import
Bank
Export-Import Bank of India (Exim Bank) has concluded an agreement dated
November 15, 2011 with the Nigerian Export-Import Bank , making available to the
latter, a Line of Credit (LOC) of USD 20 million (USD Twenty millions) for
financing exports of eligible goods and services from India. The goods and
services for export under the 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 Exim Bank under this agreement. Out of the total
credit under this Agreement, the goods and services of the value of at least 90
per cent of the contract price shall be supplied by the seller from India.
- The Credit Agreement under the LOC is effective from May 10, 2012 and the
date of execution of Agreement is November 15, 2011. Under the LOC, the last
date for opening Letters of Credit and Disbursement will be 36 months (May 9,
2015) and 42 months (November 09, 2015) from the effective date of the
Agreement.
- Shipments under the credit will have to be declared on GR / SDF Forms as per
instructions issued by Reserve Bank from time to time.
- While no agency commission shall be payable in respect of exports financed
under the above line of credit, the Reserve Bank may consider, on merit,
requests for payment of commission up to a maximum of 5 per cent of the f.o.b.
(free on board) / c&f (cost and freight)/c.i.f. (cost, insurance and freight)
value in respect of goods exported and which require after sales services. In
such cases, commission will have to be paid by deduction from the invoice of
relevant shipment to agents and the reimbursable amount by the Exim Bank to the
negotiating bank will be 90 per cent of the f.o.b /c&f /c.i.f. value. Approval
for the payment of commission should be obtained from the office of the Reserve
Bank of India (Foreign Exchange Department) within whose jurisdiction the Head
Office of the exporter is situated, before the relevant shipment is effected. In
other cases (i.e. exports not involving after sales services), if required the
exporter may use his own resources or utilize balances of his EEFC a/c for
payment of agency commission in free foreign exchange. Authorised Dealer
Category –I (AD Category –I ) banks may allow such remittance after realization
of full payment of contract value subject to compliance of prevailing
instructions on 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.
- 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/2012-13/384