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February 2010

Advance Remittance for Import of Rough Diamonds

By Pinky Shah
Sonalee Godbole
Gaurang Gandhi
Tarun Ghia
Nimesh Dedhia
Vijay Kewalramani
Chartered Accountants
Reading Time 1 mins
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Part C:
FEMA

Given below are the highlights of certain RBI
circulars, press notes and notifications

31 A. P. (DIR Series) Circular No. 21, dated
December 29, 2009

Advance Remittance for Import of Rough Diamonds

Presently, advance remittances without any limit
and without a bank guarantee or standby letter of credit for import of rough
diamonds into India, can be made to eight mining companies by eligible
importers.

Average
Maturity Period
All-in-cost ceilings over six month Libor for the respective currency of
borrowing or applicable benchmark
3 years
and up to 5 years		 300
basis points
More
than 5 years		 500
basis points

Now, advance remittances can be made by eligible
importers without any limit and without a bank guarantee or standby letter of
credit for import of rough diamonds into India to Namibia Diamond Trading
Company (PTY) Limited (NDTC).

The names of the nine mining companies to whom
advance remittance as above can be made are: –

1. De Beers UK Limited

2. RIO TINTO, UK

3. BHP Billiton, Australia

4. ENDIAMA, E. P. Angola

5. ALROSA, Russia

6. GOKHARAN, Russia

7. RIO TINTO, Belgium

8. BHP Billiton, Belgium

9. Namibia Diamond Trading Company (PTY) Limited
(NDTC).


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