FOREIGN EXCHANGE MANAGEMENT ACT, 1999 –CLARIFICATION REGARDING IMPORT OF PRECIOUS AND SEMI PRECIOUS STONES

Notification No.: RBI/2012-13/418

Date: 20/02/2013

As per Circular No.34 dated September 24, 2012, Authorised Dealers Category-I Banks (AD Category – I) have been permitted to approve Suppliers’ and Buyers’ Credit (trade credit) including the usance period of Letters of Credit opened for import of gold in any form including jewellery made of gold/ precious metal or and studded with diamonds/semi precious/ precious stone should not exceed 90 days from the date of shipment.

It is clarified that Suppliers’ and Buyers’ Credit (trade credit) including the usance period of Letters of Credit opened for import of precious stones and semi-precious stones should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect.

The instructions previously issued for direct import of gold ,import of Platinum / Palladium/ Rhodium /Silver, advance remittance for import of rough diamonds, import of rough, cut and polished diamonds and import of gold in any form including jewellery made of gold/ precious metal or and studded with diamonds/semi precious/ precious stone shall remain unchanged.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place,

Delhi-110001

Mobile: +91-9873082769

Website: www.caaga.co.in