Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan
Notification No. 40 (RE–2013)/2009-2014
New Delhi, Dated 6th September, 2013
Subject: Non-insistence on sequencing of import of gold being followed by export
of gold jewellery/articles of gold.
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade
(Development & Regulation) Act, 1992 (No. 22 of 1992), read with paragraph 2.1
of the Foreign Trade Policy, 2009-2014, as amended from time to time, the
Central Government hereby notifies the following:
- Chapter 71 of ITC(HS) 2012 Schedule 1 stipulates that import of gold is
‘subject to RBI regulations’. The Reserve Bank of India has issued certain
guidelines including
A.P. (DIR Series) Circular No.25 dated August 14, 2013 on
the operational aspect of the scheme of import of gold. Para 2(f) of the
circular No.25 states:
“(f) Any authorization such as Advance Authorization / Duty Free Import
Authorization (DFIA) is to be utilized for import of gold meant for export
purposes only and no diversion for domestic use shall be permitted. “
- This condition (f) is getting interpreted as every import under Advance Authorisation /DFIA has to be followed by a corresponding export. Normally
import precedes export under AA/DFIA but in certain cases export may precede
import. It is necessary that every import under AA/DFIA must be duly accounted
for by corresponding exports without insisting on the sequence: import preceding
export.
- Accordingly, import of gold under AA/ DFIA would have a corresponding export
but not necessarily import first and export later.
- Effect of this Notification: Import of gold under AA/ DFIA would not
necessarily be followed by export but each import has to be accounted for.
(Anup K. Pujari)
Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from 01/94/180/88/AM11/PC-4)