Export of goods and services against repayment of State Credits granted by erstwhile Soviet Union
Export of goods and services against repayment of State Credits granted by erstwhile Soviet Union
Attention
of all authorised dealers is drawn to A.D. (G.P.Series) Circular No.11 dated
June 15, 1998, in terms of which reimbursement claims sent to Reserve Bank
where the documents are negotiated within the validity of letters of credit
(LCs), are honoured by the Bank subject to the condition that claim is received
not later than the 37th working day from the date of expiry of LC, excluding
the days on which Reserve Bank of India, Mumbai is closed.
2. It has now
been decided in consultation with the Bank for Foreign Economic Affairs of the
USSR, Moscow (BFEA), to reduce the period for lodging the reimbursement claims
from 37 working days to 27 working days from the date of expiry of LC,
excluding the days on which Reserve Bank of India, Mumbai is closed.
3. Authorised
Dealers are, therefore, advised that hereafter the reimbursement claims for
exports against repayment of State Credits should be lodged so as to reach the
Regional Director, Reserve Bank of India, Deposit Accounts Department, Mumbai,
not later than 27th working day as indicated above. The claims received after
expiry of the stipulated period will be considered only on receipt of fresh
confirmation from BFEA.
4. Notice
to Exporters No.1 dated September 6, 2002 is enclosed, the contents of which
may be brought to the notice of your constituents who are engaged in export
trade with Russian Federation.
5. The
directions contained in the circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Under
the Banking Arrangement dated 6th September, 1993 concluded between Reserve
Bank of India (RBI) and the Bank for Foreign Economic Affairs of the USSR,
Moscow (BFEA), repayment of State Credits is made by way of exports of goods
and services from India to Russian Federation against Letters of Credit (LCs)
opened by BFEA. Reimbursement claims sent to Reserve Bank of India, Deposit
Accounts Department, Mumbai, where the documents are negotiated within the validity
of LCs are honoured by RBI subject to the condition that claim is received by
RBI not later than the 37th working day (from the date of expiry of LC)
excluding the days on which the Reserve Bank of India, Mumbai is closed).
2. It has
now been decided in consultation with the BFEA to reduce the period for lodging
the reimbursement claims from 37 working days to 27 working days from the date
of expiry of LC.
3. The
reimbursement claims for exports against repayment of State Credits should,
therefore, be lodged through the nominated banks so as to reach the Regional
Director, Reserve Bank of India, Deposit Accounts Department, Mumbai, within
the above stipulated period. The claims received after the above stipulated
period will be considered only after the receipt of fresh payment instructions
from BFEA.