SINGLE
REVOLVING BANK GUARANTEE FOR DIFFERENT TRANSACTIONS FOR IMPORT OF
SILVER OR GOLD OR PLATINUM
Circular No.:
30/2013-Cus
Date: 31/01/2013
Representations
have been received from the Gem & Jewellery
sector to allow their exporters to execute revolving Bank
Guarantee to be used for import of gold/ silver/ platinum, alloys, findings
and mountings of gold/silver/ platinum and plain semi-finished
gold/silver/platinum jewellery.
Notification No.
56/2000-Cus dated 05.05.2000, as amended, exempts gold/silver/platinum, alloys, findings
and mountings of gold/silver/platinum and plain semi-finished
gold/silver/platinum jewellery, when
imported into India by, inter
alia, status holders, or exporters of three years’ standing having an
annual average turnover of five crore rupees during the preceding three
licensing years under the
scheme for 'Export Against Supply by
Foreign Buyer' as referred to in paragraph
4A.8 of the Foreign Trade
Policy, from the whole of the duty
of customs leviable under the First
Schedule to the Customs Tariff Act, and
from the whole of the additional duty
leviable under section 3 of the said Tariff Act, subject to the conditions
specified in the said notification.
Duty free import is allowed for manufacturing and export of
gold/silver/platinum jewellery or articles as laid down in the said
notification subject to furnishing a
Bond of an appropriate amount and Bank
Guarantee for a sum equivalent to
one and half times of the Customs duty leviable on the said goods imported.
The request
of the Gem & Jewellery sector is to allow revolving use of the Bank
Guarantee. After considering the representations from the trade &
industry, it has been decided that the Bank Guarantee furnished by the importer
can be used for subsequent consignments, if the importer has fulfilled the
export obligation and export proceeds realized in respect of the earlier
consignments.
The bank guarantee may be so used for
subsequent import consignments, provided it is sufficient to cover the duty
involved and has validity for sufficient time period with self-renewal in-built
provision. The field formations need to take care to ensure that the
Bank Guarantee remains valid till the export proceeds are realized.
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
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