Line of Credit for export finance limits foreign sourcing, mandates domestic supply thresholds and sets strict utilization timelines. Government-supported Line of Credit by Export-Import Bank finances purchases of eligible exports from India, requiring at least 75 per cent of contract value to be supplied from India and allowing up to 25 per cent procurement from abroad; terminal utilization is six months from signing, extendable but not beyond twelve months. Shipments must be declared in the Export Declaration Form, no agency commission is payable under the LoC (exporters may pay commission from own resources or EEFC balances subject to realization), and AD Category I banks must inform exporters and obtain LoC details. Directions issued under FEMA without prejudice to other approvals.
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 for export finance limits foreign sourcing, mandates domestic supply thresholds and sets strict utilization timelines.
Government-supported Line of Credit by Export-Import Bank finances purchases of eligible exports from India, requiring at least 75 per cent of contract value to be supplied from India and allowing up to 25 per cent procurement from abroad; terminal utilization is six months from signing, extendable but not beyond twelve months. Shipments must be declared in the Export Declaration Form, no agency commission is payable under the LoC (exporters may pay commission from own resources or EEFC balances subject to realization), and AD Category I banks must inform exporters and obtain LoC details. Directions issued under FEMA without prejudice to other approvals.
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