RBI/2017-18/28
A.P. (DIR Series) Circular No. 02
July
27, 2017
To
All Category - I Authorised
Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 24.54 million to
the Government of the Republic of Ghana
Export-Import Bank of India
(Exim Bank) has entered into an agreement on November 22, 2016 with the
Government of the Republic of Ghana for making available to the latter, a
Government of India supported Line of Credit (LoC) of USD 24.54 million
(USD Twenty four million and five hundred forty thousand only) for the
purpose of financing sugarcane development and irrigation project in the
Republic of Ghana. The credit is available for financing export of eligible
goods and services from India for the purpose of financing sugarcane
development and irrigation project in terms of the agreement and 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. The goods include plant, machinery and
equipment and services include consultancy services. Out of the total
credit by Exim Bank under this agreement, goods and services of the value
of at least 75 per cent of the contract price shall be supplied by the
seller from India and the remaining 25 per cent of goods and services may
be procured by the seller for the purpose of the eligible contract from
outside India.
2. The Agreement under the LoC
is effective from July 07, 2017. Under the LoC, the terminal utilization
period is 60 months after the scheduled completion date of the project.
3. Shipments under the LoC will
have to be declared on Export Declaration Form as per instructions issued
by the Reserve Bank from time to time.
4. No agency commission is
payable for export under the above LoC. However, if required, the exporter
may use its own resources or utilize balances in its Exchange Earners’
Foreign Currency Account for payment of commission in free foreign
exchange. Authorised Dealer Category- I (AD Category- I) banks may allow
such remittance after realization of full eligible value of export subject
to compliance with the extant 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 LoC from the
Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005 or from their website 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.
Yours
faithfully,
(J
K Pandey)
Chief General Manager
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