Procedure to be followed by nominated agencies importing gold/silver/platinum under the scheme for ‘Export Against Supply by Nominated Agencies’

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CBEC

In regard to the changes made to Chapter IX (Warehousing) of the Customs Act, 1962 and Regulations issued thereunder, requests for clarification have been received from field formations and trade regarding the Circular No. 28/2009-Customs dated October 14, 2009 (Export against supply by Nominated Agencies-procedure and guidelines)/ Circular No. 34/2013- Customs dated  September 4, 2013 (Import of gold and gold dore bars-  procedure and guidelines) and Warehousing of Gold/Silver/Platinum imported by nominated agencies under Notification No. 57/2000-Customs dated May 8, 2000.

Further, consequent to the guidelines issued by the Reserve Bank of India (“the RBI”) for import of gold and gold dore bars, Circular No. 34/2013- Customs dated September 4, 2013 was issued to operationalize the same, prescribing the procedure to be followed for import of gold and thereby amending Circular No. 28/2009- Customs dated October 14, 2009 . However, Circular No. 34/2013- Customs dated September 4, 2013 was rescinded due to withdrawal of scheme on gold and gold dore bars by the RBI.

With the issue of FTP 2015-20 (“the FTP”) , Para 4.41 of the FTP and 4.94 of the Hand Book of Procedures now lay down the procedure with regard to import of gold/silver/platinum, duty free, by nominated agencies for supply to exporters for manufacture of jewellery and export thereof. Accordingly, Notification No. 57/2000-Customs dated May 8, 2000 was amended to incorporate the relevant Paras of the FTP.

Also, it is clarified that any gold/silver/platinum imported under the Notification No. 57/2000-Customs dated May 8, 2000 must be cleared on a bill of entry for home consumption and not a bill of entry for warehousing. In order to facilitate a smooth transition to the new procedure, it is being provided that nominated agencies shall file ex-bond bills of entry under Section 68 of the Customs Act, 1962 availing the benefit of Notification No.57/2000- Customs dated May 8, 2000 any time on or before August 13, 2016.  In the meanwhile, the goods can continue to be stored in the existing vaults. Further, as the procedure regarding warehousing of dutiable precious metals under Section 58A of the Customs Act, 1962 is under consideration of the Board, any dutiable precious metals already imported or to be imported can continue to be stored in the existing vaults licensed under erstwhile Section 58 of the Customs Act, 1962

Now, the Central Board of Excise and Customs vide Circular No. 27/2016-Customs dated June 10, 2016 has prescribed simplified procedure for duty free import of gold/silver/platinum by nominated agencies for supply to exporters. Further, Circular No. 28/2009 – Customs dated October 14, 2009 is rescinded.

Read more at: http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2016/circ27-2016cs.pdf