NOTIFICATION NO. 97/99-Customs
Exemption to Gold bars. – In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts standard gold bars falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, by a bank authorized by the Reserve Bank of India (hereinafter referred to as the participating bank)
from the whole of the duty of customs leviable thereon which is specified in the said First Schedule, and from the whole of the additional duty and special additional duty leviable thereon, respectively, under section 3 and section 3A of the said Customs Tariff Act, subject to the following conditions, namely :-
(i) that at the time of import, a certificate from an officer of the participating bank not below the rank of General Manager or equivalent thereof is produced to the effect that the said gold bars (in respect of description, quantity and technical specification) are imported under the Gold Deposit Scheme in exchange of scrap gold to be exported out of India; and
(ii) that an undertaking is furnished by the participating bank to the Assistant Commissioner of Customs to the effect that
(a) the said gold bars shall be used in connection with the Gold Deposit Scheme, referred to in condition (i), in the manner authorized by the Reserve Bank of India; and
(b) the participating bank shall pay, on demand, in the event of its failure to comply with clause (a), an amount equal to the difference between the duty leviable on such quantity of the said gold bars but for the exemption contained herein and that already paid at the time of importation.
(iii) that the Gold Deposit Scheme under which the exchange mentioned in condition (i) takes place shall have to be approved by the Reserve Bank of India.
Notification No. 97/99-Cus., dated 21-7-1999