RBI/2017-18/125
A.P. (DIR Series) Circular No.17
January
25, 2018
All Category – I Authorised
Dealer Banks
Madam/Sir
Exim
Bank's Government of India supported Line of Credit of USD 71.40 million to
the Government of Côte d’Ivoire
Export-Import Bank of India
(Exim Bank) has entered into an Agreement on May 22, 2017 with the
Government of Côte d'Ivoire for making available to the latter, a
Government of India supported Line of Credit (LoC) of USD 71.4 million (USD
Seventy one million four hundred thousand only) for the purpose of
financing the Upgradation of four Military Hospitals in Abidjan Korhogo,
Bouake and Daloa regions’ in Côte d’Ivoire. Under the arrangement,
financing export of eligible goods and services from India would be allowed
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. The goods include plant, machinery and
equipment and services include consultancy services. 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 December 15, 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
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 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
J
K Pandey
Chief General Manager
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