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

Duty-free import authorisation ineligibility for gems and jewellery: gold must be procured from nominated agencies for export. DFIA is not available for the gems and jewellery sector; gold cannot be imported duty-free as input. Gold intended for export production must be procured from the nominated agencies listed in the Foreign Trade Policy and used as raw material only with proper value addition. Chapter 4 of the Foreign Trade Policy and the Handbook of Procedures set out the procurement and export-use modalities.