What changed
Exim Bank signed a credit agreement with Fiji Sugar Corporation Ltd. effective January 12, 2006, for a Line of Credit up to USD 50.40 million. This circular informs authorised dealer banks about the terms, including a 48-month terminal utilization for project exports and 72 months for other supply contracts.
What it means for you
Indian exporters can now access this dedicated credit line to supply eligible goods and services for sugar plant upgrades in Fiji, with clear timelines for utilization. AD banks must ensure shipments are declared on GR/SDF forms and that no agency commission is paid from the credit proceeds, though exporters may use own or EEFC funds for commissions after full contract realisation.
What you must do
- Inform exporter constituents about the Exim Bank Line of Credit to Fiji Sugar Corporation.
- Ensure all shipments under this credit are declared on GR/SDF forms as per prevailing instructions.
- Do not allow agency commission payments from the credit proceeds; permit remittances from exporter's own or EEFC funds only after full contract value realisation.
- Refer exporters to Exim Bank's website or office for full credit details.
Who it affects
Authorised Dealer banks handling foreign exchange, Indian exporters of equipment, goods, and services to Fiji, Exim Bank and Fiji Sugar Corporation Ltd.
What is the total amount of the Line of Credit to Fiji Sugar Corporation?
The Line of Credit is for an aggregate sum of USD 50.40 million, effective from January 12, 2006.
Can exporters pay agency commission from this credit?
No, agency commission is not payable under this line of credit. Exporters may use their own resources or EEFC account balances for commission in free foreign exchange after full contract value realisation.
What are the terminal utilization periods for shipments under this credit?
For project exports, the terminal utilization period is 48 months from the scheduled completion date of the contract. For other supply contracts, it is 72 months from the date of execution of the credit agreement.