RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI – 400 001
RBI/2004/208
A.P.(DIR Series) Circular No. 92
May 19, 2004
To
All Authorised Dealers in Foreign Exchange
Madam / Sirs,
Exim Bank's Line of Credit
for USD 8 million to Republic Bank, Trinidad and Tabago
The Export-Import Bank of India
(Exim Bank) has concluded an agreement with Republic Bank, Trinidad and Tobago
making available to the latter a Line of Credit (LOC) upto an aggregate sum
of USD 8 million (US Dollar eight million only). The credit agreement has become
effective from May 14, 2004 and is available for financing export of eligible
Indian goods and services to buyers in Trinidad and Tobago.
2 The last dates for opening letters
of credit and disbursement of credit are May 14, 2005 and November 14, 2005
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 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 Trinidad and Tobago 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 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