Dated 25th July 2013
Reserve Bank of India vide its Notification no. RBI/2012-13/463 Dated April 1, 2013 issued to All Category – I Authorised Dealer Banks notified that:
Export-Import Bank of India (Exim Bank) has concluded an Agreement dated October 10, 2012 with Banco Exterior De Cuba, for making available to the latter, a Line of Credit (LOC) of USD 5 million (USD Five million) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of setting up of a milk powder processing plant in Camaguey Province of Cuba. The goods, services, machinery and equipment including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services including consultancy services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 percent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India.
The Credit Agreement under the LOC is effective from February 28, 2013 and the date of execution of Agreement is October 10, 2012. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in the case of project exports and 72 months (October 09, 2018) from the execution date of the Credit Agreement in the case of supply contracts.
Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by the Reserve Bank from time to time.
No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category-l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.
SOURCE: RESERVE BANK OF INDIA