Conversion of loan of precious metals taken from the nominated agencies into outright purchase

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

DEPARTMENT OF COMMERCE

DIRECTORATE GENERAL OF FOREIGN TRADE

Policy Circular No. 14 (RE-2005)/2004-2009      

       Date 4^th July’2005

Subject: Conversion of loan of precious metals taken from the nominated agencies into outright purchase.

In terms of provisions contained in para 6.2(f) of Foreign Trade Policy and 7.10.7 of Handbook of Procedures, the Gem & Jewellery Units in EOU/SEZ may source gold/silver/platinum from the nominated agencies on loan basis and units obtaining such precious metals from the nominated agencies are required to make export of gold/silver/platinum jewellery within 90 days from the date of release . It has also been laid down that   this shall not apply in case of outright purchase of precious metals from the nominated agencies.

2. Clarification has been sought whether, after taking such precious metals on loan basis from the nominated agencies, the same can be converted into outright purchase. The matter has been considered in consultation with the concerned Departments and it is clarified that conversion of loan of precious metals taken from nominated agencies to outright purchase is allowed within the original stipulated export period i.e 60 days upto 31.3.05 and 90 days thereafter (90 days w.e.f. 10.5.2005 in case of SEZ) from the date of release. This will, however, be subject to payment of interest till such conversion and after such conversion, it would be subject to normal policy of EOU/SEZ in so far as utilization of precious metals and export of jewellery is concerned, unless otherwise specified.           

 This issues with the approval of competent authority.

(P.K.Santra)

Dy. Director General of Foreign Trade

For Director General of Foreign Trade

(Issued from F.N o.01/92/180/58/AM’06-PC.II)

To,

All Licensing Authorities

Development Commissioners of SEZs

EOU Division/ G&J Division of Deptt. of Commerce