Line of credit enables bilateral import financing under approved contracts with disbursement via specified letters of credit. A government-to-government line of credit finances 100% of the f.o.b. value of approved contracts for eligible goods from India, disbursed only through letters of credit issued by banks in the borrowing country and advised to the State Bank of India for reimbursement. Letters of credit must be supported by the contract, include the prescribed reimbursement clause identifying the State Bank of India, and become negotiable after operative advice. Contracts and letters of credit require governmental approval and export shipments must be declared on export forms with the specified superscription and certified by authorised dealers on receipt of payment.
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 enables bilateral import financing under approved contracts with disbursement via specified letters of credit.
A government-to-government line of credit finances 100% of the f.o.b. value of approved contracts for eligible goods from India, disbursed only through letters of credit issued by banks in the borrowing country and advised to the State Bank of India for reimbursement. Letters of credit must be supported by the contract, include the prescribed reimbursement clause identifying the State Bank of India, and become negotiable after operative advice. Contracts and letters of credit require governmental approval and export shipments must be declared on export forms with the specified superscription and certified by authorised dealers on receipt of payment.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
