What changed
Exim Bank signed a Line of Credit agreement with the Central African Republic on March 19, 2012, effective August 22, 2012. The LOC of USD 20 million is for financing Indian goods, services, and consultancy for a mining project. At least 75% of contract value must be sourced from India, with up to 25% from outside India.
What it means for you
Indian exporters can now access this LOC to supply to the Central African Republic mining project, with financing from Exim Bank. AD Category-I banks must ensure shipments are declared on GR/SDF forms and that no agency commission is paid from LOC funds. Banks should guide exporters to Exim Bank for full details.
What you must do
- Inform exporter constituents about this Line of Credit and advise them to contact Exim Bank for details.
- Ensure shipments under this LOC are declared on GR/SDF forms as per RBI instructions.
- Allow remittance of agency commission only from exporter's own resources or EEFC account after full contract payment realization.
- Verify that at least 75% of contract value is sourced from India for eligible contracts.
Who it affects
AD Category-I banks, Indian exporters to Central African Republic, Exim Bank
What is the purpose of this Line of Credit?
It finances Indian goods, services, machinery, equipment, and consultancy for a mining project in the Central African Republic.
What are the sourcing requirements under this LOC?
At least 75% of the contract price must be supplied from India; up to 25% can be procured from outside India for eligible contracts.
Can agency commission be paid from the LOC funds?
No, agency commission is not payable under this LOC. Exporters may use their own resources or EEFC account for commission after full payment realization.