Import of Gold by Nominated Agencies - Warehousing - Board Clarifies
CBEC has clarified that warehousing is a facility for duty deferment. As per section 2 (14) of the Customs Act, Dutiable goods are defined as "any goods which are chargeable to duty and on which duty has not been paid". Chapter IX provides that only dutiable goods may be deposited in a warehouse. Therefore, any exempted goods are not to be warehoused within the meaning of chapter IX of the Customs Act. Accordingly, any gold/silver/platinum imported under the notification57/2000-Cus dated 8th May 2000 must be cleared on a bill of entry for home consumption and not a bill of entry for warehousing.
Consignments of Gold/Silver/Platinum imported under notification no. 57/2000-Cus. do not require to be warehoused.
The procedure regarding warehousing of dutiable precious metals under Section 58A is under consideration of the Board.
Board has reviewed the procedure for duty free import of gold/silver/platinum by nominated agencies for supply to exporters and specified a simplified procedure.
1. The Nominated Agencies shall execute a bond to the Deputy/Assistant Commissioner of Customs.
2. The Nominated Agencies may execute a bond for an amount equivalent to the duty involved on the import of a particular consignment, or, a general bond for an amount equivalent to the duty involved on quantity of precious metal likely to be imported over a specified period as declared by the importer;
3. The Nominated Agency shall, along with the bond, furnish a bank guarantee equal to 25% of the estimated amount of duty involved.
4. However, the designated banks nominated by RBI as well as public sector undertakings shall be exempt from the condition of furnishing bank guarantee, provided they fulfill certain conditions;
5. The exporters intending to receive precious metal from the Nominated Agencies will register themselves with their jurisdictional Asst. Commissioners who will issue them a one-time certificate specifying therein the details of their units.
6. EOUs may submit a self-declaration to the Nominated Agencies stating therein the details of their unit; As per para 6.01 (h) of FTP 2015-20, EOUs shall have to provide proof of export within a period of 90 days from the date on which they are issued the gold imported by nominated agencies.
CBEC Circular No. 27/2016-Cus., Dated June 10, 2016