Export Credit of $10mn to Seychelles for Procurement of Goods and Projects

[A.P. (DIR Series) Circular No. 3 dated July 25, 2019]

Sub: Exim Bank's Government of India supported Line of Credit of USD 10 million (as first tranche out of USD 50 million) to the Government of Republic of Seychelles

Export-Import Bank of India (Exim Bank) has entered into an agreement dated June 25, 2018 with the Government of Republic of Seychelles for making available to the latter, a Government of India supported Line of Credit (LoC) of USD 10 million (USD Ten Million only) as the first tranche out of USD 50 million (USD Fifty million only) for financing procurement of goods and projects as per specified needs of Republic of Seychelles. Under the arrangement, financing of export of eligible goods and services from India, as defined under the agreement, would be allowed subject to their being eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this agreement. Out of the total credit by Exim Bank under the agreement, goods and services of the value of at least 75 per cent of the contract price shall be supplied by the seller from India and the remaining 25 per cent of goods and services may be procured by the seller for the purpose of the eligible contract from outside India.

2. The Agreement under the LoC is effective from June 24, 2019. Under the LOC, the terminal utilization period is 48 months after the scheduled completion date of the project and 72 months from execution of the LoC Agreement in case of supply contracts

3. Shipments under the LoC shall be declared in Export Declaration Form as per instructions issued by the Reserve Bank from time to time.

4. No agency commission is payable for export under the above LoC. However, if required, the exporter may use his own resources or utilize balances in his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- I (AD Category- I) banks may allow such remittance after realization of full eligible value of export subject to compliance with the extant instructions for payment of agency commission.

5. AD Category – I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain complete details of the LoC from the Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or from their website www.eximbankindia.in

6. The directions contained in this circular have been issued under section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.