PROCUREMENT OF GOLD FROM NOMINATED AGENCY

[Arun Aggarwal]

IS THERE ANY RESTRICTION IN CUSTOMS LAW/ EXCISE LAW/FOREIGN TRADE POLICY OR PROCEDURE IN TRANSFER OF GOLD PROCURED FROM NOMINATED AGENCIES AS ADVANCE PROCUREMENT
(PRIOR TO EXPORT) OR REPLISHMENT BASIS (AFTER EXPORT) TO UNITS FOR JOB WORK WHICH ARE ENJOYING AREA BASED EXEMPTIONS LIKE UNITS IN JAMMU AND KAHSMIR ETC.

IF YES,

PLEASE ADVISE WHETHER SUCH RESTRICTIONS PERTAIN

A) ADVANCE PROCUREMENT OF GOLD FROM NOMINATED AGENCIES OR

B) GOLD PROCURED ON REPLINSHMENT BASIS OR

C) BOTH

BEST REGARDS

ARUN

[Kishan Barai]

Respected Arun,

procurement = the action of obtaining or procuring something

&

replenishment = the action of returning something (restoration of a supply in particular condition)

Duty Free Import Authorisation scheme shall not be available for Gems and Jewellery sector. I.e you can not import gold as a duty free inputs from foreign countries.

You need to procure gold from nominated agency mention on FTP as a input of raw material & can used it for exportation as finished goods with proper value addition.

You can read chapter 4 from both foreign trade policy and handbook of procedure.

Thank You

[Arun Aggarwal]

Tnx sir

AI Summary

Clarification on Gold Transfer Restrictions: Duty-Free Import Not Available for Gems & Jewellery Sector Per Foreign Trade Policy. A discussion on a forum addresses whether there are restrictions under customs law, excise law, or foreign trade policy on transferring gold procured from nominated agencies to units with area-based exemptions, such as those in Jammu and Kashmir. The inquiry seeks clarification on whether restrictions apply to advance procurement, replenishment, or both. A response clarifies that the Duty-Free Import Authorisation scheme is not available for the Gems and Jewellery sector, meaning gold cannot be imported duty-free. Instead, gold must be procured from nominated agencies for exportation with value addition, as outlined in the foreign trade policy and handbook of procedure.