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RBI/2018-19/44
A.P. (DIR Series) Circular No.8
August
30, 2018
All Category – I Authorised
Dealer Banks
Madam/Sir
Exim
Bank's Government of India supported Line of Credit of USD 70 million
toBanco Exterior De Cuba
Export-Import Bank of India
(Exim Bank) has entered into an agreement dated April 11, 2018 with Banco
Exterior De Cuba (nominated agency of the Government of Cuba) for making
available to the latter, a Government of India supported Line of Credit
(LoC) of USD 70 million (USD Seventy million only) for the purpose of
financing setting up of a 51 MW wind energy farm in the Republic of Cuba.
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 August 8, 2018 and the terminal utilization period is 60
months from the scheduled completion date of the respective contract.
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 Line of Credit
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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