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CUSTOMS CIRCULAR NO. 49/2002  Dated 9.8.2002

Clarification regarding import of Gems, Precious Stones, Semi-precious Stones etc. against Rep Licences and Gem Rep Licences issued under para 8.2 and 8.38 of Exim Policy 1997-2002 respectively under notification No. 60/2002-Cus, dated 7.6.2002- Reg,

I am directed to invite your attention to notification No. 60/2002-Cus., dated 7 th June, 2002, allowing import of raw pearls, natural or cultured and precious or semi-precious stones (other than rough diamonds), unset and uncut without payment of duty against Replenishment Licences issued in accordance with paragraph 4.4.1 and Gem Replenishment Licences issued in accordance with paragraph 4.4.13 of the Exim Policy 2002-2007.

2. It has been brought to the notice of the Board by the Department of Commerce that the Replenishment licences and Gem Replenishment licences referred to above were earlier covered under paragraphs 8.2 and 8.38 of the previous Exim Policy, 1997-2002 and large number of such licenses are still valid. However, the Customs authorities are not allowing duty free import of goods under notification 60/2002-Cus. against licences issued under and in accordance with paragraphs 8.2 and 8.38 of the previous Exim Policy.

3. The matter has been examined. It is seen that the provisions relating to Gem & Jewellery contained exclusively in Chapter 8 of the preceding Exim Policy 1997-2002 have been shifted to Chapter 4 of the new Exim Policy 2002-2007. So far as import under the above licences is concerned, except for the change in paragraph numbers, there is no material change with regard to
the policy provision. In the new Exim Policy, in para 1.2, there is a provision relating to ‘Transitional Arrangements’, which, interalia, provides that the licence/ certificate/permissions issued before the commencement of this Policy shall continue to be valid for the purpose for which such licence/certificate/permission was issued unless otherwise stipulated. In the instant case, the previous provisions and the present provisions are the same and there is no inconsistency.

4. In view of the positions explained above, it has been decided that raw pearls, natural or cultured, precious or semi-precious stones (other than rough diamonds) unset and uncut will be allowed the benefit of exemption when imported against REP licences and GEM Replenishment Licences issued under paragraphs 8.2 and 8.38 of the Exim policy 1997-2002 and whose validity has not expired.

5. Wide publicity may be given by issue of a Public Notice in this regard.

6. Difficulties, if any, faced in the implementation of the above instructions, may be brought to the notice of the Board at an early date.

Kindly acknowledge receipt of this Circular.

Sd/-
(C. P. Goyal)
Sr. Technical Officer (FTT)

F. No. 305/22/2002-FTT
Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs
New Delhi