One to One Co-Relation Between Exports and Procurement of Duty Free Precious Metals Not Required Says Revenue Department

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The Department of Revenue of the Ministry of Finance, Government of India, through a circular issued to Customs, has done away with an earlier provision which required that all exports involving precious metals procured from nominated agencies, should be co-related on a one to one basis.

In the circular the revenue department noted that The Gem & Jewellery Export Promotion Council had made a representation before it regarding the problems being faced on the ground as Customs was insisting on a one to one correlation between precious metals procured duty free and requiring corresponding export of jewellery, a rule imposed by a previous notification. The GJEPC had pointed out that “it was impossible to establish one to one correlation between such procurement and jewellery manufactured and exported out of the same owing to the homogenous nature of precious metal”.

The revenue department, having examined the various regulations in place came to the conclusion that “Neither the provisions of the Foreign Trade Policy nor the said notification and aforementioned circulars refer to the requirement of a one to one correlation between the gold procured and the jewellery exported. The construct of Foreign Trade Policy read with Customs notification clearly provides that the nominated agency must establish that imported duty free gold/ silver/ platinum has been exported through the manufacture of gold/silver/platinum jewellery including studded articles through the maintenance of proper records at the end of the nominated agency as well as that of exporter.”

Therefore, while it concluded that one to one correlation between the consignment of precious metal imported and the export of jewellery was not necessary, the department stressed that nominated agencies/ exporters are “required to maintain the accounts of duty free gold and domestically procured duty paid gold in such manner so that duty free gold/ silver/ platinum obtained for the purpose of export of jewellery is clearly accounted for by the export of jewellery /articles.”

News Source : gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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