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To enable qualified jewellers for importing gold through India International Bullion Exchange IFSC Ltd. (IIBX) or any other exchange, the Reserve Bank of India (RBI) issued fresh guidelines.
The other exchanges should be approved by IFSCA and the DGFT, the Government of India.
Under the fresh guidelines, RBI stated that authorised dealers banks may allow Qualified Jewellers to remit advance payments for eleven days for import of Gold through IIBX in compliance to the extant Foreign Trade Policy and regulations issued under IFSC Act. AD banks shall ensure that advance remittance for such import through exchange/s authorised by IFSCA shall be as per the terms of the sale contract or other document in the nature of an irrevocable purchase order in terms of IFSC Act and regulations made thereunder by IFSCA.
Also, authorised dealers bank shall carry out all the due diligence and ensure the remittances sent are only for the bona fide import transactions through exchange/s authorised by IFSCA.
RBI further stated that the advance remittance for import of Gold should not be leveraged in what-so-ever form for importing Gold worth more than the advance remittance made.
In case the import of Gold through IFSCA authorised exchange, for which advance remittance has been made, does not materialize, or the advance remittance made for the purpose is more than the amount required, RBI stated that the unutilised advance remittance shall be remitted back to the same AD bank within the specified time limit of eleven days.
Meanwhile, for gold imported through IIBX, QJ shall submit the Bill of Entry (or any other such applicable document issued/approved by Customs Department for evidence of import), issued by Customs Authorities to the AD bank from where advance payment has been remitted.
RBI said, all payments by qualified jewellers for imports of gold through IIBX, shall be made through exchange mechanism as approved by IFSCA in terms of IFSC Act and regulations.
Any deviation from the extant guidelines for import of Gold through IIBX need to be approved in advance by IFSCA and other applicable and appropriate authority/ies, RBI added.
IFSCA is directed to conduct all required due diligence on the exchange - IIBX including all other entities involved in enabling import of Gold by QJs in terms of the IFSCA regulations.
RBI also directed IFSCA to put in place necessary system to ensure that the advance remittance received from QJs are solely for the purpose for the import of gold through IIBX.
AD banks may frame their own internal guidelines to deal with such cases, with the approval of their Board of Directors.
