Importing-Gold-India

Procedure for Importing Gold into India

Procedure for Importing Gold into India

Indians love gold and gold is one of the major imports into India. During financial year 2014-15, India imported 915.54 tonnes of gold, recording an increase of nearly 38% compared to the previous year. Majority of gold imported into India is in the form of gold bars and in this article we look at the procedure for importing gold into India.

RBI Circular RBI/2013-14/187

The import of gold and gold dore bars into India is governed by the RBI/2013-14/187, AP (DIR Series) Circular No. 25 dated 14.8.2013. This circular superseded the customs circular No. 28/2009-Cus dated 14.10.2009 as far as the import of gold is concerned. Also, the import of silver and platinum into India is governed by the Customs Circular dated 14.10.2009.

Entities Allowed to Import Gold Bars into India

As per the RBI circular, import of Gold would be permitted only for entities notified by the Directorate General of Foreign Trade (DGFT). Currently, DGFT has permitted the following entities to import gold bars into India.

  1. Metals and Minerals Trading Corporation Limited (MMTC);
  2. Handicraft and Handloom Export Corporation (HHEC);
  3. State Trading Corporation (STC);
  4. Project and Equipment Corporation of India Limited. (PEC);
  5. STCL Limited;
  6. MSTC Limited;
  7. Diamond India Limited (DIL);
  8. Gems & Jewellery Export Promotion Council (G&J EPC);
  9. Star Trading House (only for Gems & Jewellery sector) or a Premier Trading House;
  10. Any other agency authorized by Reserve Bank of India (RBI).

Conditions for Import of Gold Bars into India

The following conditions are applicable for all entities to import gold bars into India:

  • Import of gold in the form of coins and medallions is prohibited.
  • Entities/units in the SEZ and EOUs, Premier and Star Trading Houses would be permitted to import gold exclusively for the purpose of exports. These entities will not be permitted to clear imported gold for any purpose other than for exports.
  • Gold imported against any authorization such as Advance Authorization/Duty Free Import Authorization (DFIA) should be utilized for export purposes only and there can be no diversion for domestic use.
  • All  gold imports must be routed through customs bonded warehouses;
  • The import of gold dore bars will be permitted only against a license issued by the Directorate General of Foreign Trade;
  • Entities or units in the SEZ and EOUs, Premier and Star Trading Houses would be permitted to procure gold from the refinery of the license holder exclusively for the purpose of exports only and these entities would not be permitted to clear such gold for any purpose other than for exports.
  • For each consignment of gold dore bars imported, the license holder must submit a report on utilization of gold dore bars, gold produced after refining, gold issued to exporters and the proof of export for the goods manufactured and exported by these exporters to the central excise officer.

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