A.P. (DIR Series) Circular No. 25
All Category - I Authorised Dealer Banks
Madam / Sir,
Bank's GoI supported Line of Credit of USD 4.22 million
to the Government of the Republic of Burundi
Export-Import Bank of India
(Exim Bank) has entered into an Agreement dated February 14, 2014 with the
Government of the Republic of Burundi for making available to the latter, a
Government of India supported Line of Credit (LOC) of USD 4.22 million (USD
Four million two hundred and twenty thousand) for the purpose of financing
the farm mechanization in Burundi. The goods, machinery, equipment, 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 75% of the contract price shall be supplied by the
seller from India and the remaining 25% goods and services may be procured
by the seller for the purpose of the eligible contract from outside India.
2. The credit agreement under
the LOC is effective from December 20, 2016 and the date of execution of
agreement is February 14, 2014. Under the LOC, the last date for opening of
letter of Credit and Disbursement will be 48 months for Project Export
Contracts from the schedule completion date(s) of contract(s) and 72 months
for supply contracts, from the date of execution of the Agreement.
3. Shipments under the LOC will
have to be declared on EDF/ SDF Forms as per instructions issued by the
Reserve Bank from time to time.
4. 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.
5. 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 eximbankindia.in.
6. The directions contained in
this circular have been issued under Section 10(4) and Section 11(1) of the
Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Chief General Manager-in-Charge