RBI/2004/198
A.P.(DIR
Series) Circular No.91
May 14, 2004
To
All
Authorised Dealers in Foreign Exchange
Madam/Sirs,
Exim
Bank's Line of Credit for USD 10 million (or equivalent Euro) to Banque Ouest
Africaine De Developpement (BOAD -West African Development Bank)
The
Export-Import Bank of India (Exim Bank) has concluded an agreement with Banque
Ouest Africaine De Developpement (BOAD- West African Development Bank) making
available to the BOAD's member states in the West African Economic and Monetary
Union, i.e, Burkino Faso, Benin, Cote D'Ivoire, Guinea Bissau, Mali, Niger, Senegal
and Togo a Line of Credit (LOC) upto an aggregate sum of USD 10 million (U.S.Dollar
ten million only) or equivalent Euro. The credit agreement has become effective
from April 1, 2004 and is available for financing export of equipment, goods and
services from India to buyers in BOAD's member states in the West African Economic
and Monetary Union.
2. The last dates for opening letters
of credit and disbursement of credit are September 30, 2005 and March 31, 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, Reserve Bank may consider, on merit, requests for payment
of commission upto a maximum extent of 5 percent 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 BOAD's member states only by deduction
from the invoice of relevant shipment and the reimbursable amount by the Exim
Bank to the negotiating bank will be 90 percent 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), 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 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