RBI/2018-19/213
A.P. (DIR Series) Circular No.36
June
13, 2019
All Category – I Authorised
Dealer Banks
Madam/Sir
Exim
Bank's Government of India supported Line of Credit of USD 95 million to
the
Government of the Republic of Mozambique
Export-Import Bank of India
(Exim Bank) has entered into an agreement dated December 31, 2018 with the
Government of the Republic of Mozambique for making available to the
latter, a Government of India supported Line of Credit (LoC) of USD 95
million (USD Ninety Five Million only) for the purpose of financing
procurement of railway rolling stock including locomotives, coaches and
wagons in the Republic of Mozambique. 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, works 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 June 03, 2019. 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 complete 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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