Public Notice No. 13 dated 8^th May 1998

Under various schemes of exports of Gold/ Silver/ Platinum Jewellery under Chapter 8 of the Exim Policy, a time limit has been prescribed for taking replenishment of Gold/ Silver/ Platinum and for effecting exports under outright purchase or on loan basis. Under the Exim Policy, 1992-97, for all these schemes a specific time limit was provided with a provision that further extension upto 30 days could be considered by Director General of Foreign Trade.

2.      However, in the Exim Policy, 1997-2002 the provision relating to grant of further extension of time limit for completing the export obligation/ taking replenishment of Gold/ Silver/ Platinum from the nominated agencies has been done away with as the period for completion of export obligation/ taking replenishment has been increased by 30 days.

3.      After announcement of new Exim Policy on 31^st March, 1997, few cases came to the notice wherein, in respect of contracts effected with the nominated agencies on or after 1.4.1997, many of the exporters were not able to do exports within the prescribed time limit but completed exports subsequently and exporters could not draw the Gold/ Silver/ Platinum under Replenishment scheme within the prescribed limit after exports have been completed.

4.      In order to provide one time relief to such cases where contracts with nominated agencies have been entered into on or after 1. 4. 1997 and date of export obligation period/ date of taking replenishment has already become due on or before 13.4.98, in exercise of the powers conferred on him under Paragraph 4.11 of the Export & Import Policy, 1997-2002, the following procedures are notified by Director General of Foreign Trade:

i.         In respect of cases where exports have been completed first but replenishment has not been claimed within prescribed time limit, request of replenishment may be considered by the nominated agencies;

ii.        In respect of cases where Gold/ Silver/ Platinum has been booked with the nominated agencies but exports have not been effected within prescribed time limit, but have been completed subsequently, in respect of bonafide exporters, such cases may be regularised on payment of penalty equivalent to interest @24% on duty involved in such booking of the metal, for delayed period of exports; and

iii.        After regularisation of the case as above, further release of Gold/ Silver/ Platinum to such exporter can be continued subject to terms and conditions as are normally applicable.

5.      This being one time relief, exporters are advised that they must strictly adhere to the time limit prescribed for taking replenishment/ effecting exports as prescribed in Exim Policy/ Procedures.