Import of Gold by Nominated Banks/Agencies/Entities - reg. - Customs - 39/2013

OFFICE OF THE COMMISSIONER OF CUSTOMS, CENTRAL REVENUE BUILDING, P.B. NO.5400, QUEEN'S ROAD, BANGALORE- 560 001 C.No. VIII/09/01/2013 Cus.Tech Date: 06.12.2013 PUBLIC NOTICE NO 39/2013 Sub: Import of Gold by Nominated Banks/Agencies/Entities - reg. Attention of the Trade and Industry is invited to Public Notice No 31/2013 dated 05.09.2013, issued by this office, detailing the procedure and guidelines for import of Gold and Gold Dore Bars. The said Public Notice has been issued consequent to the issue of RBI Circular No. RBI/2013-14/187 [A.P. (DIR series) Circular No. 251 dated 14.08.2013(Revised) and Board's Circular No 34/2013-Cus dated 04.09.2013. 2. As per the RBI Circular dated 14.08.2013(Revised), any authorization such as Advance Authorization/Duty Free Import Authorization (DFIA) is to be utilized for import of gold meant for export purposes only and no diversion for domestic use shall be permitted. After issue of RBI Circular dated 14.08.2013(Revised), DGFT, vide Notification No 40(RE-2013)2009-2014 dated 06.09.2013, have notified that import of gold under Advance Authorization/Duty Free In-port Authorization (DFIA), would have a corresponding export but not necessarily import first and export later. This clarification of DGFI' created an anomalous situation as the RBI Circular and the DGFI' Notification were not harmonious in their construct. The stakeholders had represented regarding the difficulties faced by them in the clearance of gold, in cases where exports have already taken place before import of gold. In order to resolve the issue, the matter was taken up by the Directorate General of Export Promotion, CBEC, New Delhi, with the concerned authorities for suitable resolution. 3. Now, RBI vide A.P.(DIR series) Circular No 73 dated 11.11.2013 has issued the following clarification: (a) Any authorisation such as Advance Authorisation (AA)/Duty Free In-port Authorisation (DFIA) is to be utilised for in-port of gold meant for export purposes only and no diversion for domestic use shall be permitted. For any AA/DFIA issued prior to 14th August 2013 the condition of sequencing the imports prior to exports shall not be insisted upon. (b) Notwithstanding any of the foregoing directions, entities/units in the SEZ and EOUs, Premier and Star Trading Houses (irrespective of whether they are nominated agencies or not) are permitted to import gold exclusively for the purpose of exports only. Similarly, exports towards fulfilment of obligation under AA/DFIA scheme shall not qualify as export for the purpose of the scheme of 20:80 . 4. Above is brought to the notice of all concerned for information and due compliance. (Sandeep Prakash) Commissioner