Line of Credit terms permit export financing with shipment declaration requirements and restricted agency commission subject to prior RBI approval. Exim Bank made a Line of Credit available to Indo Zambia Bank to finance exports eligible under India's Foreign Trade Policy, effective from June 29, 2011, with specified deadlines for opening LCs and final disbursement. Shipments must be declared on GR/SDF forms. Agency commission is generally not payable under the LOC, though the Reserve Bank may permit commission for exports needing after sales service; such commission must be deducted from the invoice, reimbursable amounts to banks will be ninety percent of FOB/CFR/CIF value, and prior RBI approval is required before shipment. AD Category I banks must observe realization and prevailing instructions for remittances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Line of Credit terms permit export financing with shipment declaration requirements and restricted agency commission subject to prior RBI approval.
Exim Bank made a Line of Credit available to Indo Zambia Bank to finance exports eligible under India's Foreign Trade Policy, effective from June 29, 2011, with specified deadlines for opening LCs and final disbursement. Shipments must be declared on GR/SDF forms. Agency commission is generally not payable under the LOC, though the Reserve Bank may permit commission for exports needing after sales service; such commission must be deducted from the invoice, reimbursable amounts to banks will be ninety percent of FOB/CFR/CIF value, and prior RBI approval is required before shipment. AD Category I banks must observe realization and prevailing instructions for remittances.
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