Single Revolving Bank Guarantee for Different Transactions for Import of Silver or Gold or Platinum.

Document Text

Circular No. 5/2013-Cus F.No. DGEP/G&J/27/2012 Govt. of India Ministry of Finance, Department of Revenue, Central Board of Excise & Customs Directorate General of Export Promotion February 6, 2013 Subject: Single Revolving Bank Guarantee Transactions for Import of Silver or Gold or Platinum- reg. for Different Customs Circular no. 30/2013-Cus dated 31.01.2013 was issued on the above subject. Inadvertently, serial number to the said Circular was given from the running register for the year 2012, instead of for the year 2013. 2. In view thereof, Circular no. 30/2013-Cus dated 31.01.2013 is re-numbered as Circular no. 5/2013-Cus dated 31.01.2013 (enclosed hereto). 3. Wide publicity may please be given to this Circular by way of issuance of Trade/Public Notice. 4. Receipt of this circular may kindly be acknowledged. Encl: as above (1 page) (Ram Tirath) Director General Circular No. 05/2013-Cus F.No. DGEP/G&J/27/2012 Govt. of India Ministry of Finance, Department of Revenue, Central Board of Excise & Customs Directorate General of Export Promotion New Delhi, the January 31, 2013 Subject: Single Revolving Bank Guarantee Transactions for Import of Silver or Gold or Platinum- reg. for Different Representations have been received from the Gem & Jewellery sector to allow their exporters to execute revolving Bank Guarantee to be used for import of gold/silver/platinum, alloys, findings and mountings of semi-finished gold/silver/platinum gold/silver/platinum and plain jewellery. 2. Notification No. 56/2000-Cus dated 05.05.2000, as amended, exempts gold/silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery falling within Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India by, inter alia, status holders, or exporters of three years’ standing having an annual average turnover of five crore rupees during the preceding three licensing years under the scheme for 'Export Against Supply by Foreign Buyer' as referred to in paragraph 4A.8 of the Foreign Trade Policy, from the whole of the duty of customs leviable under the First Schedule to the Customs Tariff Act, and from the whole of the additional duty leviable under section 3 of the said Tariff Act, subject to the conditions specified in the said notification. Duty free import is allowed for manufacturing and export of gold/silver/platinum jewellery or articles as laid down in the said notification subject to furnishing a Bond of an appropriate amount and Bank Guarantee for a sum equivalent to one and half times of the Customs duty leviable on the said goods imported. 3. The matter has been examined. The request of the Gem & Jewellery sector is to allow revolving use of the Bank Guarantee. After considering the representations from the trade & industry, it has been decided that the Bank Guarantee furnished by the importer can be used for subsequent consignments, if the importer has fulfilled the export obligation and export proceeds realized in respect of the earlier consignments. The bank guarantee may be so used for subsequent import consignments, provided it is sufficient to cover the duty involved and has validity for sufficient time period with self-renewal in-built provision. The field formations need to take care to ensure that the Bank Guarantee remains valid till the export proceeds are realised. 4. Receipt of this circular may kindly be acknowledged. (Ram Tirath) Director General

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