TaxTMI 
TaxTMI 
Import of Gold and Gold Dore Bars- Procedure and Guidelines
X X X X Extracts X X X X
X X X X Extracts X X X X
....). In order to operationalize the same, the following procedure shall be followed for import of gold. This circular shall supersede the customs circular no. 28/2009-Cus dated 14.10.2009 insofar as the import of gold is concerned. The import of silver 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 purpo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntity of gold likely to be imported in a month; vi. the Nominated Agencies (other than designated banks nominated by RBI and public sector undertakings) shall also furnish a bank guarantee equal to 25% of the estimated amount of duty involved on import of gold in a month or the bonds executed by them. The exemption from bank guarantee to the 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....; the customs officer shall permit clearance of the gold for export production under the relevant exemption notification after submission of the documents stated above and shall make necessary entries in the Register in the form prescribed in Annexure-I. This register shall be maintained by the customs officer separately for each of the nominated agency importing gold under his/her jurisdiction; xiii. 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 No....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ter prescribed in Annexure-II. He/she shall also maintain a record of proof of export of the goods manufactured out of gold supplied by the license-holder to exporters from the refined gold. The proof of export, duly certified by the central excise officer in whose jurisdiction the refinery is registered, shall be submitted to the customs officer by the license holder. v. the license holder shall ensure that at least 20% of the gold manufactured out 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 Sc....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... warehoused 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 of gold from quantity supplied in column 6 Quantity permitted to be imported 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 a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authorised to administer the Gold Deposit Scheme against full upfront payment. In other words, supply of gold in any form to the domestic users 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 consid....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ted forthwith to the concerned Regional Office of the Reserve Bank of India. 5. Government of India will be issuing separate instructions, if any, to the customs authorities/DGFT to operationalise and monitor the above requirements for import 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,....