Import of Gold - sequencing of import of gold being followed by export of gold - Not Necessary - DGFT
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, DGFT has notified that import of gold under AA/DFIA would have a corresponding export but not necessarily import first and export later.
DGFT Notification No. 40/(RE-2013)/2009-2014, Dated: September 6, 2013