2. The terminal date for opening of Letters
of Credit is November 15, 2007 (24 months from effective date of Credit Agreement).
The last date for disbursement is 48 months from the scheduled completion date
of contract in case of project exports and 60 months from the date of execution
of the Agreement i.e. August 23, 2010 in case of other supply contracts.
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 payable under
the above line of credit. However, if required, the exporter may use his own
resources or utilize balances in his EEFC account for payment of commission
in free foreign exchange. Authorised Dealer banks (ADs) may allow such remittance
after realisation of full payment of contract value subject to compliance of
prevailing instructions on payment of agency commission.
5. ADs may bring the contents of this circular
to the notice of their exporter constituents.
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) and is without prejudice to permissions/approvals, if
any, required under any other law.
Yours faithfully,
(Vinay Baijal)
Chief General Manager