exim bank’s line of credit to caf
A.P. (DIR Series) (2001-2002) Circular No. 15, dated 8-12-2001
Exim Bank’s Line of Credit
of US $ 10 million to Corporacion Andina De Fomento (CAF) (Andean Development
Corporation)
1. Export
Import Bank of India (Exim Bank) has concluded an agreement with the
Corporacion Andina De Fomento (CAF) on July 19, 2001, making available to the
latter, a line of credit up to an aggregate sum of US $ 10 million (U.S. Dollar
Ten Million only). The credit has become effective from August 27, 2001, and is
available for financing Indian export of eligible goods (listed in the Annexure)
and related services to buyers in the borrowing countries, viz.,
Republics of Bolivia, Colombia, Ecuador, Peru and Venezuela. 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 the
borrowers’ countries shall be subject to the laws and regulations in force in
the concerned 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 up to 90 per cent of the
f.o.b. (free on board) or c.&f. (cost and freight) or c.i.f. (cost,
insurance & 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 1,000,000 (U.S. Dollar One Million only) or such amount as may,
from time to time, be agreed upon between Exim Bank and the borrower.
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 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 of the balance 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 CAF. 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 Rupee at the spot rate of exchange of
the negotiating bank, 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 written communication, reimburse the negotiating bank in
U.S. Dollar with the amount of the eligible value 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 by the
negotiating bank in the communication 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 a written communication from the negotiating bank that
the issuing bank which has opened/issued letters of credit, has lifted the
reserve and as accepted the documents, or a communication 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.
7. Bank
charges, expenses, commission or stamp duty payable in India shall be to the account
of the seller/beneficiary and those payable in the borrowers’ countries shall
be to the account of the buyer.
8. The
terminal dates for opening letters of credit and utilisation of credit are
August 26, 2002, and February 26, 2003 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 July 19, 2001, extended to Corporacion Andina De
Fomento (CAF) (Andean Development Corporation).’ 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 up to a maximum extent of 5 per cent of the
f.o.b./c.&f./c.i.f. value in respect of goods specified in the Annexure
and which require after sales service. In such cases, commission will have to
be paid in countries in the Andean Region viz., Republics of Bolivia,
Colombia, Ecuador, Peru and Venezuela 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.&f./c.i.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).
Annexure
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 instruments 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 Shot 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). Reheating 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. Refractories for use in hot blast stoves, hot
blast main and bustle pipes and blast furnace proper.
57. Rubber machinery.
58. Road and construction equipment including
road rollers, tar boilers, continuous batch plants, stone crushers, asphalt
mixers, concrete mixers and vibrators.
59. Ships, boats, trawlers, steamers, launches,
barges.
60. Solvent extraction machinery.
61. Spraying equipment.
62. Steam, diesel and petrol engines.
63. Steel fabrication for bridges, factories etc.
64. Steel rails and railway track equipment
including sleepers, fishplates, points and crossings.
65. Steel shuttering and scaffolding materials.
66. Steel tanks.
67. Sugar (including Khandsari) machinery.
68. Telecommunication and signalling equipment.
69. Textile machinery.
70. Tractors and Trailers.
71. Vending machines.
72. Water supply equipment including pumping
plant, large diameter fabricated steel pipes, C.I. spun pipes and storage
tanks, water treatment and sewage treatment plant.
73. Weigh bridges.
74. Welding machinery.
75. 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,
knitting/sewing machines, vacuum flasks, cutlery, plastic moulded luggage.
7. Domestic electric appliances.
8. Drugs and pharmaceuticals.
9. Electrical equipment including low tension
insulators, 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,
stamping, 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 other item not included above that might
be agreed upon between Exim Bank and the Borrower.