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All Scheduled Commercial Banks which are Authorised Dealers (ADs) in Foreign Exchange/All Agencies nominated for import of gold
This circular states that it supersedes all earlier instructions is respect of import of gold by Authorised Dealers in Foreign Exchange/Nominated Agencies. The circular provides that: –
a) Import of gold in the form of coins and medallions is now prohibited.
b) All nominated banks/nominated agencies and other entities must ensure that at least 20% of every lot of gold imported into the country is exclusively made available for the purpose of exports and the balance for domestic use. A working example of the operations of the 20/80 scheme is annexed to this circular. The scheme shall be monitored by customs authorities, and will be implemented port-wise only.
c) Nominated banks/nominated agencies and other entities can make available gold for domestic use only to the entities engaged in jewellery business/ bullion dealers and to banks authorised to administer the Gold Deposit Scheme against full upfront payment only.
d) Nominated banks/agencies/refineries and other entities must ensure that there is no front loading of imports, particularly in the first and second lots of imports. Such imports have to be linked to normal quantities of gold supplied to the exporters by the nominated banks/agencies and must not exceed the highest quantity supplied during any one year out of last three years. The quantity thus arrived at, however, will not be imported in one or two lots only. As a thumb rule, imports of more than maximum of two months of requirements of the exporters in a lot would be considered unusual. In case there is no previous record of having supplied gold to the exporters then nominated banks/agencies must seek prior approval of the RBI before placing orders for import of gold for the first lot under the 20/80 scheme.
e) The 20/80 principle would also apply for the henceforth import of gold in any form/purity including gold dore, whereby 20 % of the gold imported will be provided to the exporters. This will be administered and monitored at the refinery level for each consignment at the time of such imports as well as by the customs authorities. The refinery can make available gold for domestic use only to the entities engaged in jewellery business/bullion dealers and to the banks authorised to administer the Gold Deposit Scheme against full upfront payment and sale of gold against any other form of payment shall not be permitted. Import of gold dore can be permitted only against a license issued by the DGFT.
f) Any authorisation such as Advance Authorisation/ Duty Free Import Authorisation (DFIA) can be utilised for import of gold meant for export purposes only and no diversion for domestic use is permitted.
However, entities/units in the SEZs and EOUs, Premier and Star Trading Houses are permitted to import gold exclusively for the purpose of exports only.
