RBI/ 2004/ 99
A.P. (DIR Series) Circular No.79
March 15, 2004
To
All Authorised Dealers in Foreign Exchange
Madam/Sirs,
Exim Bank's Line of
Credit of USD 10 Million to Central Bank of Djibouti, Djibouti
Export-Import Bank of India (Exim
Bank) has concluded an agreement with Central Bank of Djibouti, Djibouti on
July 24, 2003 making available to the latter, a Line of Credit (LOC) upto an
aggregate sum of USD 10 Million (U.S.Dollar ten million only). The Credit Agreement
has become effective from January 14, 2004 and is available for financing export
from India of Category 'A' and Category 'B' goods and services as per Memorandum
of Instructions on Project and Service Exports (Memorandum PEM) and any other
item including raw materials and commodities that may be agreed upon between
Exim Bank and Central Bank of Djibouti to buyers in Djibouti.
2. The terminal dates for opening
letters of credit and utilisation of credit are January 13, 2006 and July 13,
2006 respectively.
3. Shipments under the credit will
have to be declared on Forms GR / SDF as usual.
4. While no agency commission shall
be payable in respect of exports financed under the above LOC, 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 exported
and which require after sales service. In such cases, commission will
have to be paid in Djibouti only by deduction from the invoice of the relevant
shipment. 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 the payment of commission should be obtained from the Reserve
Bank 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 web-site.
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).
Yours faithfully,
Grace Koshie
Chief General Manager