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DGFT Online Module for Replenishment Authorisation for Gems and Consumables


DGFT Online Module for Replenishment Authorisation for Gems and Consumables

As part of the IT Revamp, the Directorate General of Foreign Trade has introduced the Online Module for Replenishment Authorisation vides a Trade notification dated 15th  February 2022. All applicants seeking Replenishment Authorisation for Gems and Consumables must apply online through the DGFT new Online Module for Gems and Consumables under the DGFT Services. The current article briefs the DGFT DGFT Online Module for Replenishment Authorisation for Gems and Consumables.

Know more about the DGFT Online Module for Export Authorization

Important Announcement for Exporter/Importer

The DGFT now introduces a new online module for filing electronic, paperless applications for Issuance of Replenishment Authorisation as per Foreign Trade Policy for Gems and Consumables.

The applications for Replenishment Authorisation for Gems and Consumables will need to be submitted directly to DGFT through the new Online Module with effect from 21.02.2022, and for Replenishment Authorisation for Gems and Consumables will be issued from DGFT HQ, Udyog Bhawan, and New Delhi with effect from 21.02.2022.

  • With this notification, DGFT announced that new applications for issuance would need to be submitted online. Replenishment Authorisation for Gems and Consumables will continue to be issued on security paper.
  • Applications submitted before 21.02.2022 through the legacy system will continue to be processed through the legacy system by Regional Authorities (RAs).

The official Notification of DGFT about the Replenishment Authorization is attached here for reference:

Trade Notice No 34 dated 15 02 2022

Replenishment Authorisation for Gems

The Exporter may obtain Replenishment Authorisation for Gems from Regional Authority following the procedure specified in the Handbook of Procedures as per the replenishment rate.

  • Replenishment Authorisation for Gems shall be freely transferable.
  • Replenishment Authorisation for Gems may be issued against Export, including that made against supply by Nominated Agency and against collection by a foreign buyer.

The rate of replenishment and the item of import will be as prescribed in the following document.

Replenishment Authorization for Gems

Replenishment Authorisation for studded gold/silver/platinum jewelry

In the case of studded gold/silver/platinum jewelry, the value of Gem Replenishment Authorisation shall be on the remaining FOB value of exports after deducting the discount of gold/ silver/ platinum, including admissible wastage.

The scale of replenishment and the item of import will be as prescribed in the following document.

Replenishment Authorization

Export against Supply by Nominated Agency

  • Exporters may obtain Replenishment Authorisation for gold/silver/platinum from Nominated Agency.
  • Exporters in EOU and units in SEZ would be governed by the respective provisions of Chapter-6 of FTP / SEZ Rules, respectively.
  • Nominated Agencies are MMTC Ltd, The Handicraft and Handlooms Exports Corporation of India Ltd, The State Trading Corporation of India Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, and Diamond India Limited
  • Reserve Bank of India can authorize any bank as Nominated Agency
  • A bank approved by the Reserve Bank of India is allowed export gold scrap for refining

Note: the import of gold by Four Star and Five Star Houses with Nominated Agency Certificate is subjected to actual user conditions, and they are permitted to import gold as input only for manufacture and Export by them during the remaining validity period of the Nominated Agency certificate

Export against Supply by Foreign Buyer

Suppose the export orders are placed on nominated agencies/status holders/exporters of 3 years standing having an annual average turnover of Rupees Rs.5 crores during the preceding three financial years. In that case, the 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.

  • Such supplies can also be in advance and may involve semi-finished jewelry, including findings/mountings/components for repairs / re-make and Export, subject to the minimum value. In such cases of Export, wastage norms as per paragraph 4.60 of the Handbook of Procedures
  • ) Exports may be made by nominated agencies directly, through their associates, or by the status holder/exporter. Import and Export of findings shall be on the net to net basis

Replenishment Authorisation for Consumables

Replenishment Authorisation for duty-free import of Consumables, Tools, and following items will be issued on production of Chartered Accountant Certificate indicating the export performance.

  • Tags and labels
  • Security sensor on the card
  • Staple wire
  • Polybag (as notified by Customs) for Jewellery made out of precious metals (other than Gold & Platinum) equal to 2% and for Cut and Polished Diamonds.
  • Jewelry made out of Gold and Platinum equal to 1% of the FOB value of exports of the preceding year
  • Rhodium-finished Silver jewelry; entitlement will be 3% of the FOB value of exports of such jewelry.

Replenishment Authorisation for Consumables shall be nontransferable and subject to actual user conditions. Application for consumables import shall be filed online to the concerned Regional Authority in ANF 4H.

The validity of Replenishment Authorisation

The validity of Replenishment Authorization for Gem & Jewellery is 12 months from the date of issue.

Prerequisites for Applying for a Replenishment Authorisation

The following are the prerequisites required to apply for Restricted Exports Authorization:

  • The DGFT user profile must be linked with an importer-exporter Code
  • A valid DSC must be registered in the system
  • GSTN details corresponding to the branches of the IEC

Application fee for Replenishment Authorisation

A registration fee of Rs.1 per thousand subjects to a minimum of Rs. 500/- and a maximum of Rs.1 Lakh on Cost, insurance, and freight (CIF) amount of the authorization will need to be paid through electronic mode in the online system for each application for issuance of the approval.

Application Procedure for Replenishment Authorisation (Gems and Consumables)

The application procedure for applying the Replenishment Authorisation (Gems and Consumables) in the DGFT Services through the Exporter’s dashboard on the DGFT Website is as follows:

New User Registration

Access the official webpage of DGFT  and proceed with the registration process. Provide the Registration Details and Select Register User as “Exporter/Exporter.”

Furnish the OTPs received by email and mobile number. Upon successfully validating the OTP, you can receive a notification containing the temporary password you need to change upon the first login.

Apply for Replenishment Authorization

After login into the DGFT web portal, navigate to the Services option and select Replenishment Authorization. The link will redirect to the application page. After furnishing the details and submitting the request to DGFT, the concerned authority will issue the Replenishment Authorisation for Gems and Consumables.