9911796707
TMI BlogImport of Gold and Gold Dore Bars- Procedure and GuidelinesX X X X Extracts X X X X X X X X Extracts X X X X ..... lver and platinum shall continue to be governed by the customs circular dated 14.10.2009. 2. Henceforth, gold shall be permitted to be imported only by the agencies notified by DGFT, which as of now are as follows: i. Metals and Minerals Trading Corporation limited (MMTC); ii. Handicraft and Handloom Export Corporation (HHEC); iii. State Trading Corporation (STC); iv. Project and Equipment Corporation of India Ltd. (PEC); v. STCL Ltd; vi. MSTC Ltd; vii. Diamond India Limited (DIL); viii. Gems Jewellery Export Promotion Council (G J EPC); ix. A Star Trading House (only for Gems Jewellery sector) or a Premier Trading House under paragraph 3.10.2 of Foreign Trade Policy; and x. Any other agency authorized by Reserve Bank of India (RBI). 3. Import of gold by the banks/agencies/entities specified in para 2 above, henceforth referred to as Nominated Agencies for the purpose of this Circular, shall be subject to the following: a. Import of gold in the form of coins and medallions is prohibited. b. It shall be incumbent on the nominated banks/agencies/entities to ensure that at least one fifth, i.e., 20%, of every lot of import of gold imported t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designated banks nominated by RBI and public sector undertakings shall be permissible subject to the following conditions: a. the said entity has not defaulted in following the procedure and condition specified by Customs and/or DGFT; b. in case of default in export of jewellery manufactured out of precious metal supplied by nominated agency within the prescribed period, the said entity has not defaulted in payment of duty within the specified period; c. the said entity has not been served with a show cause notice or no demand confirmed against it, during the preceding 3 years, for violations involving fraud or collusion or any willful misstatement or suppression of facts under relevant provisions of the Customs Act 1962 , the Central Excise Act 1944 , the Finance Act 1994 covering Service Tax, the Prevention of Money Laundering Act 2002, the Foreign Trade (Development Regulation) Act 1992 , the Foreign Exchange Management Act 1999 and the Rules made thereunder; vii. the Commissioner of Customs may allow more than one Nominated Agencies to keep their imported goods in the same bonded warehouse provided the quantities are kept segregated and separate accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . the Nominated Agencies shall also maintain an account of the goods released to the exporters (exporter-wise) on day-to-day basis. This account shall be liable for inspection by any Customs authority as the account of a bonded warehouse; xiv. proof of export by the exporter shall be furnished in accordance with para 4A.8(a) of HBP V.1, to the nominated agencies as a proof of having exported the jewellery made from the duty free gold released to them within the period prescribed in the Foreign Trade Policy . The Nominated Agency shall furnish a self-certified copy of the same to the customs officer where the gold was bonded; xv. wherever such proof of export is not produced within the period prescribed in the Foreign Trade Policy, the Nominated Agency shall (without waiting for its recovery from the exporter) deposit the amount of duty calculated at the effective rate leviable on the quantity of precious metal not exported, within 7 days of expiry of the period within which the jewellery manufactured out of the said quantity of gold was supposed to be exported. The Nominated Agencies will settle their claim with the exporter at their own level. The Nominated Agencies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of each consignment of gold dore bars is supplied to the exporters and the remaining is supplied for domestic use in accordance with the RBI circular dated 14.8.2013 , as revised; vi. entities/ units in the SEZ and EOUs, Premier and Star Trading Houses shall be permitted to procure gold from the refinery of the license holder exclusively for the purpose of exports only and these entities shall not be permitted to clear such gold for any purpose other than for exports (irrespective of whether they are nominated agencies or not). Further, gold made available by such refineries to units in the SEZ and EoUs, Premier and Star trading houses shall not qualify as supply of gold to the exporters, for the purpose of the 20/80 Scheme; vii. the central excise officer, in whose jurisdiction the refinery is registered, shall monitor that at least 20% quantity of refined gold shall be for the supply to the exporters only and remaining can be cleared in accordance with the RBI circular dated 14.8.2013 , as revised; viii. for each consignment of gold dore bars imported, the license holder shall submit a report on utilization of gold dore bars, gold produced after refining, gold issued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 2 3 4 5 6 7 8 Annexure-II Register to be maintained by the customs officer in terms of Para 5 (v) 1. Name of the License holder: 2. Full Address : 3. Name and address of the central excise office where the refining unit is registered : RECEIPTS Date Date of Import B/ E No. Date Quantity of Gold dore imported % purity of gold as indicated in the assay report Estimated quantity of pure gold Signature of the Customs officer 1 2 3 5 6 7 8 Quantity permitted to be imported in terms of RBI Circular B/E number and Date Quantity of pure gold estimated in gold dore bars imported Quantity of pure gold obtained after refining Quantity cleared on payment of duty Quantity supplied to EOUs/SEZ units, Premier and Star trading houses Quantity supplied to exporters (other than those in column 5) Quantity for which proof of export has been received till the date of next import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other than against full payment upfront shall not be permitted. The nominated banks/agencies/refineries and other entities shall ensure that there is no front loading of imports, particularly in the first and second lots of imports. Such imports shall be linked to normal quantities of gold supplied to the exporters by the nominated banks/agencies and shall not exceed the highest quantity supplied during any one year out of last three years. The quantity thus arrived at, however, will not be imported in one or two lots only. As a thumb rule, imports of more than maximum of two months of requirements of the exporters in a lot would be considered unusual. Illustratively, if the gold supplied to exporters by a bank during the last three years is say, 30 tonnes, 40 tonnes and 60 tonnes respectively, imports in terms of this circular shall be based on highest of three i.e. 60 tonnes. Further, import of 50 tonnes( two months export of 10 tonnes for exports and 4 times the amount for domestic use, totalling 50 tonnes) will be considered unusual. In case of nominated banks not having a previous record of having supplied gold to the exporters they would need to seek prior approval from RBI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of gold. 6. The above instructions will come into force with immediate effect. Authorised dealers may please bring the contents of this circular to the notice of their constituents and customers concerned. 7. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) , and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully (Rudra Narayan Kar) Chief General Manager-in-Charge Annex Working example of the operations of 20/80 scheme for import of gold 1. A nominated bank/agency/ any other entity ABC imports say 100 kg of gold, which shall be routed through custom bonded warehouses only. If considered necessary, the lot can be procured through two invoices one for exporters (i.e.20%) and the other one for domestic users (80%). 2. Out of the above import of 100 kg, 20 kg gold held in the bonded warehouse can be got released in part or full to be made available to the exporters of gold against undertaking to customs authorities as is the practice now. 3. The balance 80 kg can be supplied in part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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