Import of Gold by Nominated Banks/Agencies/Entities - RBI Instructions
JEWELLERS, bullion dealers, AD banks, and trade bodies have represented to the Government of India and RBI to rationalise the guidelines for import of gold.
RBI has decided to modify the guidelines for import of Gold by the nominated banks/agencies/entities. These revised guidelines which will come into force with immediate effect are:-
Star Trading Houses/Premier Trading Houses (STH/PTH) which are registered as nominated agencies by the Director General of Foreign Trade (DGFT) may now import gold under 20:80 scheme subject to the following conditions:
a) The STH/PTH should have imported gold prior to the introduction of 20:80 scheme. STH/PTH should get the required verification done by the Department of Customs at any port where they have imported gold consignment in the past.
b) The first lot of gold under this scheme would be based on the highest monthly import during any of the last 24 months prior to the RBI's notification dated August 14, 2013, subject to a maximum of 2000 Kgs.
c) As in the case of other nominated agencies, the eligible quantity may be imported by STH/PTHs from any port, subject to their eligibility limit/maximum quantity allowed to them.
d) For proper compliance, before import, they must submit the import plan, port-wise and quantity-wise, to the concerned Customs office, where the verification of the figures of past performance was done. This information will be sent to all the other ports from which imports are permitted. The overall discipline of exporting 20% of each imported consignment before the next consignment is imported will be equally applicable to such STH/PTH importers.
RBI has also decided to permit the nominated banks to give Gold Metal Loans (GML) to domestic jewellery manufacturers out of the eligible domestic import quota of 80% to the extent of GML outstanding in their books as on March 31, 2013.
The directions have been issued under Sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999).