What changed
Exim Bank signed a line of credit agreement with the Government of Cote d'Ivoire for USD 26.8 million, effective December 5, 2005. The credit supports Indian exports for urban transport renewal in Abidjan (USD 21.8 million) and agricultural projects (USD 5 million). Terminal utilization is 48 months from scheduled completion date for project exports and 60 months from the date of execution of the Agreement (August 02, 2010) for other supply contracts.
What it means for you
AD banks must facilitate exports under this credit by ensuring GR/SDF form declarations and allowing commission payments from exporter's own resources or EEFC accounts after full contract value realization. No agency commission is payable from the credit itself. Banks should guide exporters on these terms to avoid compliance issues.
What you must do
- Inform exporter constituents about the Exim Bank line of credit to Cote d'Ivoire.
- Ensure all shipments under this credit are declared on GR/SDF forms as per prevailing instructions.
- Allow remittance of agency commission only from exporter's own resources or EEFC accounts after full contract value realization.
- Verify that no agency commission is paid from the line of credit proceeds.
Who it affects
Authorised Dealer (AD) banks handling foreign exchange, Indian exporters of buses and agricultural project goods/services, Exim Bank
What is the total amount of the line of credit to Cote d'Ivoire?
The line of credit is for an aggregate sum of USD 26.8 million, effective from December 5, 2005.
Can exporters pay agency commission under this credit?
No agency commission is payable from the line of credit. However, exporters may use their own resources or EEFC account balances to pay commission in free foreign exchange after full contract value realization.
What are the terminal utilization periods for exports under this credit?
For project exports, the terminal utilization period is 48 months from the scheduled completion date. For other supply contracts, it is 60 months from the agreement execution date, i.e., August 2, 2010.