exim bank’s line of credit to biat
AP (DIR Series) (2001-2002) Circular No. 1, dated 14-7-2001
Exim Bank’s Line of Credit of US $ 5 million to Banque Internationale Arabe de Tunisie (BIAT)
Export
Import Bank of India (Exim Bank) has concluded an agreement with the Banque
Internationale Arabe de Tunisie (BIAT) on October 21, 2000, making available to
the latter, a line of credit upto an aggregate amount of US $ 5 million (U.S.
Dollar five million only). The credit has become effective from March 1, 2001 and
is available for financing Indian export of eligible goods (listed in the
Annexure) and related services to Tunisia. The eligible goods will also include
initial spares, drawings and designs together with services related thereto.
The export of goods from India and their import into Tunisia shall be subject
to the laws and regulations in force in both the countries.
2. The broad
terms and conditions of the credit are as under :
(a) Every
contract under the credit will require prior approval of Exim Bank.
(b) The
credit shall be available for financing an amount upto 90 per cent of the
f.o.b. (free on board)/c.i.f. (cost, insurance & freight)/c. & f. (cost
and freight) contract price of the eligible contract.
(c) The
contract price shall be specified in U.S. Dollar and shall not be less than
U.S. Dollar 50,000 (U.S. Dollar fifty thousand only) or such amount as may,
from time to time, be agreed upon between Exim Bank and BIAT.
(d) The
contract signed under the credit should also provide for the following :—
i. The
buyer shall make an advance payment of 10 per cent of the f.o.b./c. &
f./c.i.f. of the contract value to the seller payable within 10 business days
after the date of the approval of the contract by Exim Bank.
ii. The
buyer shall make payment to the seller the balance of 90 per cent of f.o.b./c.
& f./c.i.f. of the contract price, pro rata against shipments, to be
covered under an irrevocable letter of credit in favour of the seller.
iii. The
eligible goods shall be inspected before shipment on behalf of the buyer and
the documents to be furnished by the seller to the negotiating bank under the
letter of credit arrangement shall include an inspection certificate.
3. The
letter of credit shall be advised through such offices of the negotiating bank
in India as may be designated from time to time by Exim Bank in consultation
with BIAT. The letter of credit shall be subject to the Uniform Customs and
Practice for Documentary Credits (1994 edition) published by the International
Chamber of Commerce (Publication No. 500) and shall be irrevocable and if
required by a seller, be also divisible and transferable.
4. Upon
presentation of documents by the beneficiary to the negotiating bank, the
negotiating bank shall pay to the beneficiary an amount being not more than 90
per cent of f.o.b./c. & f./c.i.f. contract value, apportionable to the
relative shipment, in equivalent Indian Rupees at the spot rate of exchange of
the negotiating bank, plus the amount of insurance as applicable in Indian
Rupees, provided the documents presented are in order and are in conformity
with the relevant letter of credit.
5. Where
negotiation has been effected without reserve, Exim Bank shall, upon receipt of
the negotiating bank’s advice, reimburse the negotiating bank in U.S. Dollars
with the amount of the eligible value so paid by the negotiating bank to the
beneficiary in equivalent Indian Rupees, to the extent apportionable to the
relative shipment by transfer to the credit of the negotiating bank in such
account with such bank in New York, USA as may be specified in the negotiating
bank’s advice to Exim Bank. If the negotiation has been made under reserve,
Exim Bank shall make payment to the negotiating bank only after Exim Bank
receives an advice from the negotiating bank that the issuing bank, which has
opened/issued letters of credit, has lifted the reserve and has accepted the
documents, or an advice from the issuing bank through the borrower or the
negotiating bank to that effect.
6. Exim
Bank shall in no way be liable or responsible for any act or omission of the
negotiating bank in handling the letter(s) of credit or negotiation of
documents thereunder or for payment to a beneficiary thereof or otherwise, for
any interest on the amount to be reimbursed to the negotiating bank.
7. Bank
charges, expenses, commission or stamp duty payable in India shall be to the
account of the seller/beneficiary and those payable in Tunisia shall be to the
account of the buyer.
8. The
terminal dates for opening letters of credit and utilisation of credit are
February 28, 2002 and August 30, 2002 respectively.
9. Shipments
under the credit will have to be declared on GR/SDF forms as usual. All copies
of GR/SDF forms should bear a prominent superscription reading ‘Export under
Exim Bank line of credit dated October 21, 2000 extended to Banque
Internationale Arabe de Tinisie’. The number and date of this circular should
be recorded in the space provided for. On receipt of full payment of the bills
in the manner stated above, authorised dealer should certify the duplicate
copy/ies of the relative GR/SDF form/s and forward them to the concerned
Regional Office of the Reserve Bank, in the usual manner.
10. No
agency commission shall be payable in respect of exports financed under the
above line of credit. However, 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.i.f./c. & f. value in respect of goods specified in the Annexure
which require after sales service. In such cases, commission will have to be
paid in Tunisia only 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.i.f./c. & f. value minus the commission paid. Approval
for payment of commission should be obtained before the relevant shipment is
effected.
11. Authorised
dealers may bring the contents of this circular to the notice of their exporter
constituents.
12. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Any
contravention or non-observance of these directions is subject to the penalties
prescribed under the Act.
Annexure
List of Eligible Goods for finance out of the Credit
1. Air
compressors.
2. Air
conditioning, heating, cooling, fume extraction, dust collection,
humidification and ventilation equipment for industrial use including blowers
and exhaust fans.
3. Alcohol
and brewery plant.
4. Aluminium
plant and equipment.
5. Asbestos
cement machinery.
6. Cement
machinery.
7. Cinematographic
equipment for motion picture and television studios.
8. Chemical
and pharmaceutical plant and machinery.
9. Cigarette
making machinery.
10. Coffee
processing machinery.
11. Coke oven
plant and equipment.
12. Coke oven
refractories.
13. Control and
Process Instrument including X-Ray equipment for Industrial Applications.
14. Copper Ore
concentration machinery.
15. Dairy
equipment and animal feed plant.
16. Earth
moving equipment like crawler tractors, shovels, excavators, loaders, dumpers
etc.
17. Edible Oil
Mill machinery and oil expellers.
18. Electric
motors and pumps.
19. Electronic
Data Processing equipment.
20. Fertilizer
plant and equipment.
21. Flour, rice
and dal mill machinery.
22. Food
processing plant.
23. Foundry
equipment including mould making machinery, Sand and Short blasting equipment.
24. Freight
containers.
25. Garage
equipment.
26. Gas and air
separation plants.
27. Glass and
Ceramic machinery.
28. Heat
Exchangers.
29. Integrated
Steel Plants (complete or in parts), mini steel plants (electric arc and
reduction furnaces). Re-heating and heat treatment furnaces, Rolling Mills and
other finishing lines for ferrous and non-ferrous metals.
30. Ice-making
machinery.
31. Industrial
boilers.
32. Industrial furnaces.
33. Industrial switchboards, Control panels,
circuit breakers, air break switches.
34. Jute machinery.
35. Leather tanning and processing machinery.
36. Machine tools.
37. Machinery for manufacturing air conditioners,
bicycles, corks, electrical goods, enamel-ware, hard board, metal containers,
radios, razor blades, refractories and bricks, sewing machines, shoes, steel
furniture, wire-ropes and cables etc.
38. Machinery for manufacturing any product
figuring in Part B of this List, not specified separately in this Part.
39. Material handling equipment like fork lifts,
electric lifts, cranes, hoists etc. and conveyor systems.
40. Metal working machinery.
41. Mining machinery.
42. Motor vehicles and chassis, including
three-wheelers.
43. Oil drilling rigs.
44. Oil refinery equipment.
45. Packaging and weighing machinery.
46. Pile foundation machinery.
47. Plastic machinery.
48. Power generation, transmission and
distribution equipment including, boilers, generators, transformers,
switchgears, transmission line towers, conductors, cables, sub-station equipment
and protective equipment.
49. Power line carrier communication equipment.
50. Power station structures, hydraulic
structures like penstocks, gates and gearings, sub-station structures.
51. Pressure vessels.
52. Printing and book-binding machinery.
53. Pulp and Paper Mill machinery.
54. Railway electrification equipment and
structures and railway signalling equipment.
55. Railway rolling stock including locomotives,
wagons, coaches and trolleys.
56. Rubber machinery.
57. Road and construction equipment including
road rollers, tar boilers, continuous batch plants, stone crushers, asphalt
mixers, concrete mixers and vibrators.
58. Ships, boats, trawlers, steamers, launches,
barges.
59. Solvent extraction machinery.
60. Spraying equipment.
61. Steam, diesel and petrol engines.
62. Steel fabrication for bridges, factories etc.
63. Steel rails and railway track equipment
including sleepers, fishplates, points and crossings.
64. Steel shuttering and scaffolding materials.
65. Steel tanks.
66. Sugar (including Khandsari) machinery.
67. Telecommunication and signalling equipment.
68. Textile machinery.
69. Tractors and Trailers.
70. Vending machines.
71. Water supply equipment including pumping
plant, large diameter fabricated steel pipes, C.I. spun pipes and storage
tanks, water treatment and sewage treatment plant.
72. Weigh bridges.
73. Welding machinery.
74. Wood
working machinery.
1. Agricultural implements.
2. Auto parts.
3. Bicycles, motorcycles, scooters, mopeds and
parts.
4. Construction materials including
sanitaryware, tiles and precast cement products, false ceiling, flooring
materials, pipes, decorative laminates, fittings, electricals and
steel/aluminium doors and windows, provided they are exported as separate items
and not as items forming part of civil construction/turnkey projects.
5. Agricultural chemicals and industrial
chemicals.
6. Pressure cookers, watches and clocks,
knittings/sewing machines, vacuum flasks, cutlery, plastic moulded luggage.
7. Domestic electric appliances.
8. Drugs and Pharmaceuticals.
9. Electrical equipment including low tension
insultators, batteries and accumulators, parts of electrical machinery and
lamps, fuses and electrodes for industrial application.
10. Electronic components.
11. Electronic goods including radios, TV, public
address systems, record players, tape recorders.
12. Fibreglass, PVC and plastics based products
including pipes and tubes, tyre cord.
13. Ferrous/non-ferrous castings, forgings,
stampings, extrusions and rolled products.
14. Ferrous/non-ferrous pipes, tubes, sheets,
strips, foils, rods, wires, wire ropes.
15. Heating and cooling equipment including air
conditioners, refrigerators, water coolers.
16. Industrial rubber products including tyres
and tubes, cots and aprons, conveyor belts, rubber rollers, hose pipes.
17. Instruments for measurement, scientific
survey and for surgical applications.
18. Industrial fasteners, bearings, valves, gears
and gaskets.
19. X-ray and other electro-medical and other
hospital equipments.
20. Office-equipments including typewriters,
calculators, duplicators, teleprinters.
21. Metal and plastic furniture.
22. Hand tools, cutting tools, grinding wheels,
moulds dies.
23. Gas cylinders, fire fighting equipment,
photographic equipment, helmets, including fibreglass helmets.
24. Any item not included in
Part “B” above that might be agreed
upon between Exim Bank and Borrower.