Direct Receipt of Import Bills / Documents for Import of Rough Precious & Semi-Precious Stones – Liberalisation – RBI circular
The Gems and Jewellery Export Promotion Council ( GJEPC ) has represented that in order to reduce the transaction costs to the non-status holder exporters, the existing restrictions may be relaxed and the enhanced facility may also be extended for import of rough precious and semi-precious stones.
RBI has decided, as a sector specific measure, to enhance the limit for direct receipt of import bills / documents from USD 100,000 to USD 300,000 in the case of import of rough precious and semi-precious stones by non-status holder exporters. Accordingly, AD Category - I banks may allow remittance for imports up to USD 300,000 where the importer of rough precious and semi-precious stones has received the import bills / documents directly from the overseas supplier and the documentary evidence for import is submitted by the importer at the time of remittance. AD Category - I banks may undertake such transactions subject to the following conditions :
(i) The import would be subject to the prevailing Foreign Trade Policy.
(ii) The transactions are based on their commercial judgment and they are satisfied about the bonafides of the transactions.
(iii) AD Category-I banks should do the KYC and due diligence exercise and should be fully satisfied about the financial standing / status and track record of the importer customer. Before extending the facility, they should also obtain a report on each individual overseas supplier from the overseas banker or reputed credit agency overseas.
The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
RBI Circular No. 37/ RBI Dated : April 16 , 2008