RBI/2016-17/278
A.P. (DIR Series) Circular No. 44
April
13, 2017
To
All Category - I Authorised
Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 31.29
million to the Government of the Republic of Nicaragua
Export-Import Bank of India
(Exim Bank) has entered into an agreement dated September 8, 2016 with the
Government of the Republic of Nicaragua for making available to the latter,
a Government of India supported Line of Credit (LOC) of USD 31.29 million
(USD Thirty one million two hundred ninety thousand only) for financing the
transmission lines and substations project in the Republic of Nicaragua.
The credit is available for financing export of eligible goods from India
which means any goods and services including machinery and equipment for
the purpose of transmission lines and substation 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. 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 March 30, 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,
(Deepak
Kumar)
Chief General Manager
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