IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 29 May 2014 | Removal date: open ended
Still in force

Trade finance

On 29 May 2014, the Japan Bank for International Corporation (JBIC) signed two buyer's credit agreements with JSW Steel Limited in India totalling JPY 3 billion (approx. USD 26.4 million) and USD 30 million respectively. Notably the Japanese company JFE Steel holds a equity stake of 15% in JSW Steel. The credit lines are additionally co-financed by a private financial institution, in which the governmental agency Nippon Export and Investment Insurance will provide a Buyer's credit insurance for the co-financed amount. The total co-financed potion amounts to JPY 5 billion (USD 49 million) and USD 50 million, respectively.
 
The loan will finance the Indian steel manufacturer 's purchase of steel manufacturing-related facilities and technological services from Japanese companies.
 
In this context the Bank stated: 'As such, these loans will support the further export expansion of machinery and equipment of Japanese companies, by responding timely and flexibly to JSW Steel's investment demand, and thereby contribute to maintaining and strengthening the international competitiveness of Japanese industries.'
 
Buyer's credit agreements
JBIC provides export loans also named buyer's credit to overseas importers. Loans are obtained if it finances the purchase of Japanese machinery, equipment or technology in specific eligible sectors. The Bank hereto stated that these loans are intended to 'positively contribute to Japanese companies'. Further information can be found on the Bank's website under export loans.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

433 Bearings, gears, gearing & driving elements; parts
8483 Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including
848310 Transmission shafts (including cam shafts and crank shafts) and cranks
848320 Bearing housings, incorporating ball or roller bearings
848330 Bearing housings, not incorporating ball or roller bearings; plain shaft bearings
848340 Gears and gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball or roller screws; gear boxes and other speed changers, including torque converters
848350 Flywheels and pulleys, including pulley blocks
848360 Clutches and shaft couplings (including universal joints)
848390 Toothed wheels, chain sprockets and other transmission elements presented separately; parts
442 Machine-tools & parts
8457 Machining centres, unit construction machines (single station) and multistation transfer machines, for working metal.
845710 Machining centres
845720 Unit construction machines (single station)
845730 Multistation transfer machines
8459 Machinetools (including waytype unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centres) of heading 84.58.
845910 Waytype unit head machines
845921 Numerically controlled
845929 Other
845931 Numerically controlled
845939 Other
845940 Other boring machines
845951 Numerically controlled
845959 Other
845961 Numerically controlled
845969 Other
845970 Other threading or tapping machines
8460 Machinetools for deburring, sharpening, grinding, honing, lapping, polishing or otherwise finishing metal or cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines of headin
846011 Numerically controlled
846019 Other
846021 Numerically controlled
846029 Other
846031 Numerically controlled
846039 Other
846040 Honing or lapping machines
846090 Other
8461 Machinetools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cuttingoff and other machinetools working by removing metal or cermets, not elsewhere specified or included.
846120 Shaping or slotting machines
846130 Broaching machines
846140 Gear cutting, gear grinding or gear finishing machines
846150 Sawing or cuttingoff machines
846190 Other
8462 Machinetools (including presses) for working metal by forging, hammering or diestamping; machinetools (including presses) for working metal by bending, folding, straightening, flattening, shearing, punching or notching; presses for working metal or met
846210 Forging or diestamping machines (including presses) and hammers
846221 Numerically controlled
846229 Other
846231 Numerically controlled
846239 Other
846241 Numerically controlled
846249 Other
846291 Hydraulic presses
846299 Other
443 Machinery for metallurgy & parts
8455 Metalrolling mills and rolls therefor.
845510 Tube mills
845521 Hot or combination hot and cold
845530 Rolls for rolling mills
845590 Other parts

Please report this page in case you detect an inaccuracy in its content.