RBI/2013-14/423
A.P. (DIR Series) Circular No.82
December 31, 2013
To
All Scheduled Commercial Banks which are Authorized Dealers (ADs) in
Foreign Exchange/ All Agencies nominated for import of gold
Madam / Sir,
Import of Gold by Nominated Banks/Agencies/Entities
Attention of Authorized 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 import of gold dore. Taking into account these
representations and in consultation with the Government of India, it has been
decided to issue the following clarifications which shall come into force with
immediate effect :
Refineries are allowed to import dore up to 15% of their gross average viable
quantity based on their license entitlement in the first two months for making
this available to the exporters on First in First out (FIFO) basis. Subsequent
to this, the quantum of gold dore to be imported should be determined lot-wise
on the basis of export performance.
Before the next import, not more than 80% shall be allowed to be sold
domestically.
The dore so imported shall be refined and shall be released based on FIFO basis
following 20:80 principle. This would be monitored by CBEC as earlier.
The imports, thereafter, shall be allowed only up to 5 times the quantum for
which proof of export has been submitted. This shall be on accrual basis.
- Authorized 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,
(C. D. Srinivasan)
Chief General Manager