Recently, the Directorate General of Foreign Trade (DGFT), issued their notification that pronounced the amendment in import policy condition of Gold under ITC (BS) 2022.
This is to know the Existing Policy Condition say: Import is allowed only through nominated agencies as notified by RBI (in case of banks), DGFT (for other agencies) and International Financial Services Centres Authority (IFSCA)-(for qualified jewellers through India International Bullion Exchange); Gold Dore can be imported by refineries against a POS license with AU condition.
Revised Policy Condition under the notification, 1: Import is allowed through: (i) Nominated agencies as notified by RBI (in case of banks) or nominated agencies notified DGFT (for other agencies), (ii) Qualified Jeweller (as notified by IFSCA) through India International Bullion Exchange (IIBX).
2: Valid India-UAE Tariff Rate Quota (TRQ) holders a notified by IFSCA can import gold through IIBX against the TRQ and can obtain physical delivery of the same through IFSCA registered vaults located in SEZs as per the guidelines prescribed by the IFSCA.
3. Gold Dore can be imported by refineries against an import licence with Actual User (AU) condition.
Indian jewellers have to understand the notification and its’ overall effect of the notification say, valid India-UAE TRQ holders as notified by IFSCA can import gold through IIBX against the TRQ and can obtain physical delivery of the same through IFSCA registered vaults located in SEZs as per the guidelines prescribed by the IFSCA.
In the row, by analysing the DGFT notification Colin Shah, MD, Kama Jewelry said on, FTA with UAE for gold imports! He said, “It’s a welcome move for the jewellery manufacturers with revenue of below 25 crores and are holders of TRQ licence holders.
This will strengthen them to import gold from UAE under the FTA, and empower them to export finished products to other international markets, ultimately playing a role of a coveted contributory towards the Indian economy. The details on the SOPs are still awaited. However, with the ongoing geo-political situation, it is important to keep a check on demand trajectory to avoid pile-up of the inventory. Having said that, the domestic demand was robust during the festive sales and will continue to strengthen with onset of the wedding season.”