Export credit line permits Exim Bank to fund exports to PTA member countries with specified terminal dates and commission limits. Exim Bank provides a foreign currency Line of Credit to PTA Bank to finance exports from India to PTA member countries for goods and services eligible under the Foreign Trade Policy; the agreement is effective from 28 December 2006 with a 36 month terminal date for opening Letters of Credit and 42 month terminal date for disbursements. Shipments under the LOC must be declared on GR/SDF forms. Agency commission is generally not payable, but RBI may allow up to 5% for exports requiring after sales service (paid in PTA countries by invoice deduction), with the reimbursable amount to the negotiating bank specified as 90% of the f.o.b./c&f/c.i.f. value minus the commission. AD Category I banks must inform exporters and may permit commission remittances under prevailing rules; the directions are issued under FEMA.
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.
Export credit line permits Exim Bank to fund exports to PTA member countries with specified terminal dates and commission limits.
Exim Bank provides a foreign currency Line of Credit to PTA Bank to finance exports from India to PTA member countries for goods and services eligible under the Foreign Trade Policy; the agreement is effective from 28 December 2006 with a 36 month terminal date for opening Letters of Credit and 42 month terminal date for disbursements. Shipments under the LOC must be declared on GR/SDF forms. Agency commission is generally not payable, but RBI may allow up to 5% for exports requiring after sales service (paid in PTA countries by invoice deduction), with the reimbursable amount to the negotiating bank specified as 90% of the f.o.b./c&f/c.i.f. value minus the commission. AD Category I banks must inform exporters and may permit commission remittances under prevailing rules; the directions are issued under FEMA.
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