Single Revolving Bank Guarantee for Different Transactions for Import of Silver or Gold or Platinum -Reg.

Circular No. 30/2013-Cus

New Delhi, the January 31, 2013

All Chief Commissioners of Customs/Central Excise,

All Commissioners of Customs/ Central Excise.

Madam/ Sir,

Sub:     Single Revolving Bank Guarantee for Different Transactions for Import of Silver or Gold or Platinum- reg.

Representations have been received from the Gem & Jewellery sector to allow their exporters to execute revolving Bank Guarantee to be used for import of gold/ silver/ platinum, alloys, findings and mountings of gold/silver/ platinum and plain semi-finished gold/silver/platinum jewellery. 

2.         Notification No. 56/2000-Cus dated 05.05.2000, as amended, exempts gold/silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery falling within Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India by, inter alia, status holders, or exporters of three years’ standing having an annual average turnover of five crore rupees during the preceding three licensing years under the scheme for ‘Export Against Supply by Foreign Buyer’ as referred to in paragraph 4A.8 of the Foreign Trade Policy, from the whole of the duty of customs leviable under the First Schedule to the Customs Tariff Act, and from the whole of the additional duty leviable under section 3 of the said Tariff Act, subject to the conditions specified in the saidnotification. Duty free import is allowed for manufacturing and export of gold/silver/platinum jewelleryor articles as laid down in the said notification subject to furnishing a Bond of an appropriate amount and Bank Guarantee for a sum equivalent to one and half times of the Customs duty leviable on the said goods imported.

3.         The matter has been examined.  The request of the Gem & Jewellery sector is to allow revolving use of the Bank Guarantee. After considering the representations from the trade & industry, it has been decided that the Bank Guarantee furnished by the importer can be used for subsequent consignments, if the importer has fulfilled the export obligation and export proceeds realized in respect of the earlier consignments. The bank guarantee may be so used for subsequent import consignments, provided it is sufficient to cover the duty involved and has validity for sufficient time period with self-renewal in-built provision.  The field formations need to take care to ensure that the Bank Guarantee remains valid till the export proceeds are realised.

4.         Receipt of this circular may kindly be acknowledged.

Yours faithfully,

(Ram Tirath)

Director General

Import of gold in any form including jewellery – FEMA Clarification

\

RBI/2012-13/220
A.P. (DIR Series) Circular No. 34,September 24, 2012

To
All Category – I Authorised Dealer Banks
Madam / Sir,
Foreign Exchange Management Act, 1999-Import of gold in any form including jewellery made of gold/precious metals or / and studded with  diamonds / semi  precious / precious stones – clarification
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the provisions contained in A.P.(DIR Series) Circular No.59 dated May 6, 2011, in terms of which, AD Category – I banks have been permitted to approve Suppliers’ and Buyers’ credit (trade credit) including the usance period of Letters of Credit  for import of rough, cut and polished diamonds, for a period  not exceeding 90 days, from the date of shipment.
2. It is clarified  that Suppliers’ and Buyers’ credit (trade credit) including the usance period of Letters of Credit opened for import of gold in any form including jewellery made of gold/precious metals or/ and studded with diamonds/ semi precious / precious stones should not exceed 90 days, from the date of shipment.
3. All the instructions issued for direct import of gold, vide A.P. (DIR Series) Circular No.2 dated July 9, 2004; import of Platinum / Palladium/ Rhodium /Silver vide A.P. (DIR Series) Circular No.12 dated August 28, 2008; advance remittance for import of rough diamonds, vide A.P. (DIR Series) Circular No. 21 dated December 29, 2009 and import of rough, cut and polished diamonds, vide A.P.(DIR Series) Circular No.59 dated May 6, 2011, shall remain unchanged.
4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. 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,
(Rashmi Fauzdar)
Chief General Manager