(i)    The Nominated Agencies shall be allowed import of goods or silver for warehousing in their own bonded vaults. The vaults shall be licensed by the jurisdictional Asstt. Commissioners of Customs under Section 58 of the Customs Act, 1962;

        (ii)    The Nominated Agencies will furnish a bond to the satisfaction of ACC undertaking to properly account for the warehoused gold and silver and also to discharge the duty liability at the prescribed effective rate of duty in the event of the exporter on fulfilling his export obligation within the prescribed period;

        (iii)    The Nominated Agencies may be  permitted to give a general bond for an estimated amount of duty worked out at the effective rate involved in their monthly import or may give a revolving bond starting with a bond equal to the duty estimated at the effective rate on quantity of gold likely to be imported in a month;

        (v)    Wherever there is necessity the Commissioner of Customs may allow more than one Nominated Agencies to keep their imported goods in the same vault provided the quantities are kept segregated and separate accounts are maintained;

        (vi)    The nominated Agencies will be required to keep the goods imported for supply to the exporters duty free segregated from the quantities imported for domestic consumption on payment of duty;

        (vii)    The Nominated Agencies shall be exempt from following the double lock system and physical presence of the Bond Officer will not be required for bonding or exbonding the goods. No cost recovery charges would be payable by the Nominated Agencies;

        (viii)    The Nominated Agencies shall be liable for surprise audit or checks by the Customs Officers. The Commissioner should devise a system of random audit at least once in 6 months initially and once in a year subsequently;

        (xi)    The exporters intending to receive gold form the Nominated Agencies will register themselves with their jurisdictional Asstt. Commissioners who will issue them a one-time Certificate specifying therein the details of their units such as name and address of the company and the chief of the organisation. This Certificate has to be produced to the Nominated Agencies while taking gold. The units shall submit an under taking to the Asstt. Commissioner without bank guarantee to follow the conditions of notification under which they are receiving duty free metal and export the jewellery made therefrom within the period stipulated in EXIM Policy. The EOU units may submit a self-declaration to the Nominated Agencies stating therein the details of  their unit;

        (x)    The Nominated Agencies would allow clearance of the goods for export production under the relevant exemption notification under their own internal documents and would submit a consolidated monthly account in format enclosed of the goods released exporter-wise and the duty involved which will be worked on the basis of effective rate of duty. (Presently @ 220/- per 10 gms. of gold & @ Rs. 500/- per one kg. of silver;

        (xi)    The Nominated Agencies shall maintain an account of the goods released to exporters (exporter-wise) on the day-to-day basis. This account shall be liable for inspection by any Customs Authority as the account of a bonded warehouse;

        (xii)    The exporter shall furnish the EP copy of the shipping bill to the Nominated Agencies as a proof of having exported the jewellery made from the duty free goods released to them within a period prescribed in the EXIM Policy;

        (xiii)    Wherever such proof of export is not produced within the period prescribed in the EXIM Policy the Nominated Agencies, shall (without waiting for its recovery from the exporter) deposit the amount of duty calculated at the effective rate leviable on the quantity gold/silver not exported within 7 days of expiry of the period within which the jewellery manufactured out of the said gold/silver was supposed to be exported. The duty so paid by the Nominated Agency shall be reflected in the monthly statement prescribed in para (x) above. The Nominated Agencies will settle their claim with the exporter at their own level;

        (xiv)    The Nominated Agencies shall report the cases of failure to export the jewellery made out of gold/ silver released to the exporter to the commissioner of Customs in whose jurisdictions the licensed vault of the Nominated Agencies in installed;

        (xv)    The exporters operating under replenishment scheme may be permitted to receive goods from the Nominated Agencies on submission of E.P. copy; and

        (xvi)    It is clarified that the importers who want to avail of the benefits of import of precious metals under notification No. 144/93-Cus. dated 28-6-93 without going through the above procedure may be allowed to import the said metals by following the conditions in the said notification.

2.    The Circulars No. 38/96-Cus. dated 9.7.96, 27/97-Cus. dated 8.7.97 and Circular No. 48/97-Cus. dated 13.10.97 stand withdrawn.

3.    The above circular may be given wide publicity by way of issuing a Public Notice.

           Owner

2.        Full Address                              :

3.        Bond No. & Date                        :

4.        Amount of Bond                         :

5.        Accepted by                              :