RBI/2018-19/75
A.P. (DIR Series) Circular No. 14
November
15, 2018
All Category – I Authorised
Dealer Banks
Madam/Sir
Exim
Bank's Government of India supported Line of Credit of USD 3.5 million to
the Government of the Republic of Suriname
Export-Import Bank of India (Exim
Bank) has entered into an agreement dated June 20, 2018 with the Government
of the Republic of Suriname for making available to the latter, a
Government of India supported Line of Credit (LoC) of USD 3.5 million (USD
Three million and five hundred thousand only) for the purpose of financing
the servicing and maintenance of 3 (three) Chetak helicopters in the
Republic of Suriname. Under the arrangement, financing of export of
eligible goods and services from India, as defined under the agreement,
would be allowed subject to their being 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, 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 October 23, 2018. Under the LoC, the terminal utilization
period is 60 months after the scheduled completion date of the project.
3. Shipments under the LoC shall
be declared in 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 his own resources or utilize balances in his 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 www.eximbankindia.in
6. The directions contained in
this circular have been issued under section 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
(R
K Moolchandani)
Chief General Manager
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