The Export-Import Bank of India
(Exim Bank) has concluded an agreement with the Government of the Socialist
Republic of Vietnam on August 12, 2004 making available to the latter a Line
of Credit (LOC) upto an aggregate sum of USD 27 Million (US Dollar twenty-seven
million only). The credit agreement has become effective on November 1, 2004.
The credit is available for financing export of capital goods, plant and machinery,
industrial manufactures, consumer durables and any other item eligible for being
exported under the Exim Policy of Government of India from India to buyers in
Vietnam.
2. The last dates for opening letters
of credit and disbursement of credit are October 31, 2006 and April 30, 2007
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 Vietnam 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 Dealer Banks 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 direction contained in this
circular has been issued under sections 10(4) and 11(1) of the Foreign Exchange
Management Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions
/ approvals, if any, required under any other law.