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RBI/2005-06/165
A.P.(DIR Series) Circular No. 12
September 19, 2005
To
All Banks Authorised to Deal in Foreign Exchange
Madam/Sir,
Exim Bank's Line of Credit of USD 10 Million
to Banque Marocaine du Commerce Exterieur (BMCE Bank), Morocco
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with Banque Marocaine du Commerce Exterieur
(BMCE Bank), Morocco on July 4, 2005 making available to the latter a Line of
Credit (LOC) upto an aggregate sum of USD 10 Million (US Dollar Ten Million
only). The credit agreement has become effective from July 22, 2005. The credit
is available for financing any items that may be agreed upon between Exim Bank
and BMCE Bank and which are eligible for being exported from India to buyers
in Morocco under the Foreign Trade Policy of the Government of India. Full details
of the Line of Credit are available at Exim Bank's office or it’s website (www.eximbankindia.com).
2. The last dates for opening letters of credit
and disbursement of credit are July 21, 2007 and January 21, 2008, respectively.
3. Shipments under the credit will have to be
declared on GR / SDF Forms as per instructions issued from time to time.
4. No agency commission is ordinarily payable
under the above line of credit. However, if necessary, the exporter can either
use his own resources or utilise balances in his EEFC account for payment of
commission in free foreign exchange. Authorised dealer banks may allow such
remittance after realisation of full payment of contract value, subject to compliance
of prevailing instructions on payment of agency commission. Further, Reserve
Bank may consider on merit, requests for payment of agency 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 which require after sales service. In such cases, commission
will have to be paid in Morocco 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 such payment of commission should be obtained before the relevant
shipment is effected.
5. Authorised Dealer Banks may bring the contents
of this circular to the notice of their exporter constituents.
6. The direction contained in this circular
has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management
Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions / approvals,
if any, required under any other law.
Yours faithfully,
Vinay Baijal
Chief General Manager
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