| Date: |
20-01-1998
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| Notification No: |
Customs Circular No 3/1998
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Import of gold/ silver/ platinum by the nominated agency for sale/ loan to jewellery exporter - Procedures regarding amendment of Bank Guarantee amount
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Import of gold/ silver/ platinum by the nominated agency for sale/ loan
to jewellery exporter - Procedures regarding amendment of Bank Guarantee amount
Circular
No. 3 dated 20th January 1998
I am directed to refer to Board's Circular No. 27/
97 dated 8th July 1997 and Circular No. 48/97 dated 13th October 1997 on the
subject cited above.
2. The Gold
Jewellery Exporters Association, New Delhi and the Ministry of Commerce have
submitted that the exporters who are exporting Gem & Jewellery under various
schemes of the EXIM Policy and are getting duty free gold from the Nominated
Agencies by furnishing a bank guarantee of 10% of the duty which is calculated @
tariff rate (72. 5%) are facing financial difficulties. The reason advanced is
that presently, the Nominated Agencies are supplying gold to the domestic market
on payment of customs duty at the rate of Rs. 220/- per 10 gms which works out
to about 4. 5% to 5% of the value of the gold whereas the exporters are
providing bank guarantee to the extent of 7. 25% of the value of the gold. They
have therefore requested to ameliorate the financial difficulty of the
exporters.
3. The issue had
been examined by the Board and it has been decided that, with immediate effect,
the bonds executed by the Gem & Jewellery exporters for taking duty free
gold from the Nominated Agencies should be secured by a bank guarantee of 5% of
the value of the gold (not bond amount as specified earlier). Accordingly, para
2(b) of the Circular No. 27/ 97 & para 9 of the Circular No. 48/97 may be
treated as modified to this extent. This may be given vide publicity by issue of
a suitable public Notice.
4.
Kindly acknowledge receipt.
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