Exim Bank’s Line of Credit for USD 8 million to Republic Bank, Trinidad and Tobago
A.P. (DIR Series)
(2003-04) Circular No. 92, Dated 19-5-2004
Exim
Bank’s Line of Credit for USD 8 million to Republic Bank, Trinidad and Tobago
The
Export-Import Bank of India (Exim Bank) has concluded an agreement with
Republic Bank, Trinidad and Tobago making available to the latter a Line of
Credit (LOC) upto an aggregate sum of USD 8 million (US Dollar eight million
only). The credit agreement has become effective from May 14, 2004 and is
available for financing export of eligible Indian goods and services to buyers
in Trinidad and Tobago.
2. The last dates for opening letters of
credit and disbursement of credit are May 14, 2005 and November 14, 2005
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 of 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 Trinidad and Tobago 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).