To
All Banks Authorised to Deal in Foreign Exchange
Madam/Sir,
Exim Bank's Line of Credit of USD 2 Million
to Trade and Investment Development Corporation of the Philippines - TIDCORP
(also known as Philippine Export-Import Credit Agency – PhilEXIM)
The Export-Import Bank of India (Exim Bank)
has concluded an agreement with the Trade and Investment Development Corporation
of the Philippines (TIDCORP) on March 7, 2003 and an Amendatory Credit Line
Agreement dated February 28, 2005 making available to the latter a Line of Credit
(LOC) upto an aggregate sum of USD 2 Million (US Dollar Two Million only). The
credit agreement has become effective on June 10, 2005. The credit is available
for financing capital goods, plant and machinery, consumer durables and any
other items eligible for being exported from India to buyers in Philippines
under the Foreign Trade Policy of the Government of India.
2. The last dates for opening letters of
credit and disbursement of credit are December 10, 2006 and June 10, 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. No agency commission is ordinarily payable
under the above line of credit. However, if necessary, the exporter can use
his own resources for payment of commission in free foreign exchange. Further,
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 which require after sales service. In such cases, commission
will have to be paid in Philippines 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 such
payment of commission should be obtained before the relevant shipment is effected.
5. Authorised Dealer Banks may bring the
contents of this circular to the notice of their exporter constituents. Full
details of the Line of Credit are available from the 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.
Yours faithfully,
Vinay Baijal
Chief General Manager