A.P. (DIR Series)
(2003-04) Circular No. 91, dated 14-5-2004
Exim
Bank’s Line of Credit for USD 10 million (or equivalent Euro) to Banque Ouest
Africaine De Developpement (BOAD - West African Development Bank)
The
Export-Import Bank of India (Exim Bank) has concluded an agreement with Banque
Ouest Africaine De Developpement (BOAD- West African Development Bank) making
available to the BOAD’s member states in the West African Economic and Monetary
Union, i.e., Burkino Faso, Benin, Cote D’Ivoire, Guinea Bissau, Mali,
Naiger, Senegal and Togo a Line of Credit (LOC) upto an aggregate sum of USD 10
million (U.S. Dollar ten million only) or equivalent Euro. The credit agreement
has become effective from April 1, 2004 and is available for financing export
of equipment, goods and services from India to buyers in BOAD’s member states
in the West African Economic and Monetary Union.
2. The last dates for opening letters of
credit and disbursement of credit are September 30, 2005 and March 31, 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 line or credit, Reserve
Bank may consider, on merit, requests for payment of commission upto 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 BOAD’s member states only by deduction from the invoice of
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 commission
paid. Approval for the payment of commission should be obtained before the
relevant shipment is effected. In other cases (i.e. exports not
involving after sales service), if the exporter is required to pay agency
commission, he 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 Line 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).