Exim Bank's Line of Credit for USD 50 million
to Government of Sudan
The Export-Import Bank of India (Exim Bank)
has concluded an agreement with the Government of Sudan on January 19, 2004,
making available to the latter a Line of Credit (LOC) upto an aggregate sum
of USD 50 million (U.S.Dollar fifty million only). The credit agreement has
become effective from June 4, 2004. The credit is available for financing export
of capital goods, plant and machinery, industrial manufactures, consumer durables
and other items eligible for exports under the 'Exim Policy' of Government of
India and agreed upon between the Exim Bank and the borrower.
2 The last dates for opening letters of credit
and disbursement of credit are June 3, 2006 and December 3, 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 5per 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 Sudan 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).