Line of Credit terms impose sourcing and compliance obligations for exporters and authorised banks under FEMA directives. Government-supported Line of Credit amended to reduce the facility finances eligible exports of goods, machinery, equipment and consultancy services under the Indian Foreign Trade Policy, requiring a substantial share of supplies to originate from India and setting specific terminal utilization periods for project and other supply contracts. Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or Exchange Earners' Foreign Currency accounts after realisation, subject to prevailing instructions and Authorised Dealer Category-I bank oversight. Directions issued under FEMA.
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Line of Credit terms impose sourcing and compliance obligations for exporters and authorised banks under FEMA directives.
Government-supported Line of Credit amended to reduce the facility finances eligible exports of goods, machinery, equipment and consultancy services under the Indian Foreign Trade Policy, requiring a substantial share of supplies to originate from India and setting specific terminal utilization periods for project and other supply contracts. Shipments must be declared on EDF/SDF forms. No agency commission is payable under the LOC, though exporters may pay commission from their own resources or Exchange Earners' Foreign Currency accounts after realisation, subject to prevailing instructions and Authorised Dealer Category-I bank oversight. Directions issued under FEMA.
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