Circular No. 5/2013-Cus dated 6.2.2013
Sub: Single Revolving Bank Guarantee for Different Transactions for Import of
Silver or Gold or Platinum- reg.
Customs Circular no. 30/2013-Cus dated 31.01.2013 was issued on the above
subject. Inadvertently, serial number to the said Circular was given from the
running register for the year 2012, instead of for the year 2013.
2. In view thereof, Circular no. 30/2013-Cus dated 31.01.2013 is re-numbered as
Circular no. 5/2013-Cus dated 31.01.2013 (enclosed hereto).
3. Wide publicity may please be given to this Circular by way of issuance of Trade/Public Notice.
4. Receipt of this circular may kindly be acknowledged.
Yours faithfully,
Encl: as above (1 page)
(Ram Tirath)
Director General
F.No. DGEP/G&J/27/2012
Circular No. 05/2013-Cus dated 31.1.2013
Sub: Single Revolving Bank Guarantee for Different Transactions for Import of
Silver or Gold or Platinum- reg.
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.
2. 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 falling within Chapter 71 of
the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), 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.
3. The matter has been examined. 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 realised.
4. Receipt of this circular may kindly be acknowledged.
Yours faithfully,
(Ram Tirath)
Director General
F.No. DGEP/G&J/27/2012
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