A.P. (DIR Series)(2003-04) Circular No. 85, dated 16-4-2004
Exim
Bank’s Lines of Credit of USD 10 Million each to Government of Zambia and to
Bank Gospodarstwa Krajowego (National Economy Bank - BGK Bank), Poland
Export-Import
Bank of India (Exim Bank) has concluded agreements with Ministry of Finance,
Government of Zambia on December 20, 2003 and BGK Bank, Poland on January 20,
2004 making available Lines of Credit (LOCs) upto an aggregate sum of USD 10
million (U.S. Dollar ten million) each. The Credit Agreements have become
effective from March 18, 2004 and March 15, 2004 respectively and are available
for financing export of eligible Indian goods and services to Zambia and Poland
under the respective LOCs.
2. The last
dates for opening Letters of Credit and disbursements are March 17, 2006 and
September 17, 2006, respectively in respect of the LOC extended to Government
of Zambia. In respect of LOC extended to BGK Bank, Poland, the last dates for
opening letters of credit and for disbursements are March 14, 2006 and
September 14, 2006 respectively.
3. Shipments
under the credit will have to be declared on GR/SDF Forms as per instructions
issued from time to time.
4. While no
agency commission shall be payable in respect of exports financed under the
above lines of credit, Reserve Bank may consider, on merit, requests for
payment of commission up to a maximum extent of 5 per cent of the
f.o.b./c&f/c.i.f. value in respect of goods exported and which require
after sales service. In such cases, commission will have to be paid in
Zambia and Poland only for the exports under the respective LOCs, by deduction from
the invoice of the relevant shipment and the reimbursable amount by the Exim
Bank to the negotiating bank will be 90 per cent of the f.o.b./c&f/c.i.f.
value minus the commission paid. Approval for payment of commission
should be obtained before the relevant shipment is effected. In other cases (i.e.,
exports not involving after sales service), requiring payment of agency
commission, the exporter will have to use his own resources for such payments.
5. Authorised
Dealers may bring the contents of this circular to the notice of their exporter
constituents and advise them to obtain full details of the Lines of Credit from
Exim Bank’s office or its website.
6. The
directions contained in this circular have been issued under sections 10(4) and
11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).