QUESTION

ABC is a Goldsmith and engaged in the manufacture of gold Gems and jewellary and registered with GST authorities. He has been doing local business for the last six years, now he wishes to come into the field of import and export as he would be getting purchase order of gold gems and jewellary from the middle east gulf countries. (i) What is the procedure to import of Gold Bars (Gold Biscuits) ii) Whether ABC has to procure the Gold bars from local market or import through authorized Govt. agencies. (iii) Whether ABC can undertake job-work for some process outside the premises of our manufacturing premises. if it is so, what are the procedures to be followed? (iv) Whether for export ABC need to get registered in Customs authorities, if it is so, by virtue of which notification, circular or instructions of Customs or any Central Govt. authorities. (v) What are bindings to follow i.e. returns or documents to be submitted to Customs Authorities before and after import or export of Gold gems and jewellary?

ANSWER

Facts of the case:

Procedure for import/export of gold.

Reply:

Policy conditions for import of Gold is prescribed in Notification No. 36/2015-2020 dt. 18-12-2019 (enclosed herewith).

Para 4.45 of FTP regarding Export against supply by foreign Buyer is reproduced below:
(i) Where export orders are placed on nominated agencies / status holder / exporters of three years standing having an annual average turnover of Rupees five crores during preceding three financial years, foreign buyer may supply in advance and free of charge, gold / silver / platinum, alloys, findings and mountings of gold / silver / platinum for manufacture and export.

(ii) Such supplies can also be in advance and may involve semi-finished jewellery including findings / mountings / components for repairs / re-make and export subject to minimum value addition as prescribed under paragraph 4.61 of Handbook of Procedures. In such cases of export, wastage norms as per paragraph 4.60 of Handbook of Procedures shall apply.

(iii) Exports may be made by nominated agencies directly or through their associates or by status holder / exporter. Import and Export of findings shall be on net to net basis. (Reply dt. 28/10/2021)