Reserve Bank Of India
Foreign Exchange Department
Central Office
Mumbai - 400 001
RBI/2004/148
A.P.(DIR Series) Circular No.84
April 16, 2004
To
All Authorised Dealers in Foreign Exchange
Madam/Sirs,
Exim Bank's Line of Credit
for USD 10 million to Bank TuranAlem, Kazakhstan
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with Bank TuranAlem , Kazakhstan on February
27, 2004 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 March 24, 2004 and is available for financing export of
equipment, goods and services and any other items eligible for being exported
under the 'Exim Policy' of Government of India that may be agreed upon between
Exim Bank and Bank TuranAlem to buyers in Kazakhstan.
2. The last dates for opening
Letters of Credit and disbursement of credit are March 23, 2006 and September
23, 2006 respectively.
3. Shipments under the credit will
have to be declared on GR/SDF Forms as per instructions issued from time to
time.
4. While no agency commission shall
be payable in respect of exports financed under the above line of credit, Resrve
Bank may consider, on merit, requests for payment of 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 and which require after sales service. In such cases, commission will
have to be paid in Kazakhstan 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 commission
paid. Approval for the payment of commission should be obtained before the relevant
shipment is effected. In other cases (i.e. exports not involving after sales
service), requiring payment of agency commission, the exporter 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 constituents and advise
them to obtain full details of the Line of Credit from Exim Bank's office or
its website.
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