RBI/2016-17/253
A.P. (DIR Series) Circular No. 40
March
16, 2017
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Exim
Bank's Government of India supported Line of Credit of USD 50
million to the Government of Co-operative Republic of Guyana
Export-Import Bank of India
(Exim Bank) has entered into an agreement dated March 16, 2016 with the
Government of Co-operative Republic of Guyana for making available to the
latter, a Government of India supported Line of Credit (LOC) of USD 50
million (USD Fifty million only) for financing East Bank East Coast Road
Linkage Project in Guyana. The goods including plant, 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, 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 credit agreement under
the LOC is effective from March 02, 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 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 payment of contract value 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 on 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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