Introduction: The Reserve Bank of India (RBI) has recently issued Circular No.14, A.P. (DIR Series), dated January 31, 2024, addressing All Category-I Authorised Dealer Banks. This circular provides crucial guidelines regarding the import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) as notified by the International Financial Services Centres Authority (IFSCA). In this article, we will delve into the key aspects of the circular and its implications on the import of gold.
Detailed Analysis: The circular refers to the permissions granted to AD Category-I banks in Circular No.04, dated May 25, 2022, allowing them to remit advance payment on behalf of Qualified Jewellers for eleven days for the import of gold through India International Bullion Exchange IFSC Ltd (IIBX). Additionally, it brings attention to Notification No.44/2023, dated November 20, 2023, by DGFT, permitting valid TRQ holders under the India-UAE CEPA to import gold under specific ITC(HS) codes through IIBX against the TRQ.
The RBI’s decision, as outlined in the circular, allows AD Category-I banks to facilitate advance payment for the import of gold by valid TRQ holders under the India-UAE CEPA. This move aims to streamline the import process and ensure compliance with the guidelines set by the IFSCA.
Conclusion: In conclusion, the RBI’s recent circular provides clear guidelines for AD Category-I banks regarding the import of gold by TRQ holders under the India-UAE CEPA. The focus on advance payment and adherence to specified codes through IIBX demonstrates the RBI’s commitment to facilitating smooth transactions while maintaining regulatory compliance. It is crucial for AD Category-I banks, as well as their constituents and customers, to be aware of and adhere to the directives outlined in this circular to ensure a seamless and compliant import process.
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RESERVE BANK OF INDIA
RBI/2023-24/118
A.P. (DIR Series) Circular No.14
January 31, 2024
To
All Category-I Authorised Dealer Banks
Madam/Sir,
Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE CEPA as notified by–The International Financial Services Centres Authority (IFSCA)
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P. (DIR Series) Circular No.04 dated May 25, 2022, in terms of which AD Category-I banks have been permitted to remit advance payment on behalf of Qualified Jewellers as notified by International Financial Services Centres Authority (IFSCA) for eleven days for import of gold through India International Bullion Exchange IFSC Ltd (IIBX).
2. Further, attention of AD Category-I banks is invited to Notification No.44/2023 dated November 20, 2023 issued by DGFT, in terms of which, valid Tariff Rate Quota (TRQ) holders under the India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) as notified by the IFSCA have been permitted to import gold under specific ITC(HS) codes through IIBX against the Tariff Rate Quota (TRQ).
3. Accordingly, it has been decided that subject to the directions as mentioned in A.P. (DIR Series) Circular No.04 dated May 25, 2022, AD Category-I banks may allow valid TRQ holders under the India-UAE CEPA to remit advance payment for eleven days for import of gold through IIBX against the TRQ.
4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager
