Conversion of loan of precious metals taken from the nominated agencies into outright purchase
As per para 6.2(f) of Foreign Trade Policy the Gem & Jewellery Units in EOU/SEZ may source gold/silver/platinum from the nominated agencies on loan basis and units obtaining such precious metals from the nominated agencies are required to make export of gold/silver/platinum jewellery within 90 days from the date of release. This does not apply in case of outright purchase of precious metals from the nominated agencies.
A doubt has arisen whether the precious metals received on loan can be converted into outright purchase.
DGFT clarifies that such conversion is permissible within the original stipulated 90 days.
CIRCULAR NO. , Dated: July 4, 2005