RBI/2013-14/493
A.P. (DIR Series) Circular No.103
February 14, 2014
To
All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign
Exchange/ All Agencies nominated for import of gold
Madam / Sir,
Import of Gold / Gold Dore by Nominated Banks /Agencies/Entities -
Clarifications
Attention of Authorised Persons is drawn to the Reserve Bank's
A.P. (DIR
Series) Circular No. 25 dated August 14, 2013; and
A.P. (DIR Series) Circular
No. 73 dated November 11, 2013 on the captioned subject.
- Government of India and the Reserve Bank of India have been receiving
representations related to Advance Authorisation (AA) / Duty Free Import
Authorisation (DFIA). Taking into account these representations and in
consultation with the Government of India, it has been decided to issue the
following clarifications which come into force with immediate effect:
a) In case of AA / DFIA issued before August 14, 2013, the condition of
sequencing imports prior to exports shall not be insisted upon even in case of
entities / units in the SEZ and EoUs, Premier and Star Trading Houses.
b) The imports made as part of the AA/DFIA scheme will be outside the purview of
the 20:80 scheme. Such Imports will be accounted for separately and will not
entitle the Nominated Agency/ Banks/Entities for any further import.
c) The Nominated Banks / Agencies / Entities may make available gold to the
exporters (other than AA/DFIA holders) operating under the Replenishment Scheme.
They can resort to import of gold for the purpose, if considered necessary.
However, such import will be accounted for separately and will not entitle them
for any further import.
d) Import of gold in the third lot onwards will be lesser of the two:
Five times the export for which proof has been submitted; or
Quantity of gold permitted to a Nominated Agency in the first or second lot.
A revised working example of the operations of 20:80 scheme envisaged in terms
of the revised instructions is given in the Annex.
- Further with reference to
A.P. (DIR Series) Circular No. 82 dated December
31, 2013 on import of Gold Dore, it is clarified that:
i) The refiners are allowed to import Gold Dore of 15% of their licence for each
of the first two months.
ii) In case, the quantity has already been identified by DGFT for first two
lots, import of such quantity will be in compliance with the guidelines issued
vide
A.P. (DIR Series) Circular No. 82 dated December 31, 2013.
iii) DGFT, through a notification, may include new refiners, and fix licence
quantity for them.
- Authorised Dealers may bring the contents of this circular to the notice of
their constituents and customers concerned.
- 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
Revised working example of the operations of 20/80
scheme for import of gold*
- 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%).
- Out of the above import of 100 kg, 20 kg. gold held in the bonded warehouse
can be got released, in part or full, to be made available to the exporters of
gold against an undertaking to Customs Authorities as is the practice now.
- The balance 80 kg can be supplied in part or full to domestic entities
engaged in jewellery business / bullion traders / banks operating the Gold
Deposit Scheme against full upfront payment. In other words, no credit sale of
gold in any form will be permitted for domestic use. In case, the Nominated Bank
itself is operating the Gold Deposit Scheme, the bank is permitted to use out of
80 kg, a portion for regularising own open position in gold arising out of
operations of the Gold Deposit Scheme.
- Next lot of import of 100 kg of gold by ABC shall be permitted by the Customs
Authorities only after the proof of export (i.e. 20% of the imported lot) is
submitted.
- Import of gold in the third lot onwards will be lesser of the two:
i) Five times the export for which proof has been submitted; or
ii) Quantity of gold permitted to a Nominated Agency in the first or second lot.
Note: The same procedure is to be followed by the refineries and by any other
entity importing gold in any other form/purity and in the case of import of Gold
Dore also.
* First lot of gold import will be counted with effect from 14.08.2013.