Export Against Supply by Nominated Agencies importing gold/silver/platinum

Procedure to be followed by nominated agencies importing gold/silver/platinum underthe scheme for ‘Export Against Supply by Nominated Agencies’

Ref: Circular No. 27/2016-Customs dated 10th June 2016

Rescinded Circulars: 28/2009-Cus dated 14.10.2009, Circular 34/2013-Customs, Policy Circular no. 39 (RE-2010)/ 2009-14 dated 19.08.2011, Policy Circular No. 77 (RE-2008)/2004-09 dated 31.03.2009, 

Note: Consignments of Gold / Silver / Platinum imported under notification no. 57/2000-Cus. do not require to be warehoused. In the meantime, any dutiable precious metals already imported or to be imported (i.e. without availing notification no. 57/2000-Cus. or any other exemption notification by virtue of which no duty is chargeable) can continue to be stored in the existing vaults licensed under erstwhile Section 58. 

Conditions (Customs Side):

Nominated Agencies shall execute a bond to the Deputy/Assistant Commissioner of Customs binding themselves to, -
a) maintain accounts for the gold/silver/platinum imported; and
b) to discharge the duty in the event of the exporter not fulfilling his export obligation within the period prescribed under the foreign trade policy;

For the purpose of para above, the Nominated Agencies may execute a

bond for an amount equivalent to the duty involved on the import of a particular

consignment, or, a general bond for an amount equivalent to the duty involved

on quantity of precious metal likely to be imported over a specified period as

declared by the importer;

The Nominated Agency shall, along with the bond, furnish a bank guarantee

equal to 25% of the estimated amount of duty involved.

Conditions (Central Excise/CGST Side):

1. Exporters intending to receive precious metal from the Nominated Agencies will register themselves with their jurisdictional Asst. Commissioners who will issue them a one-time certificate specifying therein the details of their units. This certificate has to be produced to the Nominated Agencies while taking gold. The exporter shall submit to the Asst. Commissioner an undertaking to the effect that he shall export the jewellery made from the gold/silver/platinum received from the nominated agency within the period stipulated in the Foreign Trade Policy.
2. EOUs may submit a self-declaration to the Nominated Agencies. EOUs shall have to provide proof of export within a period of 90 days from the date on which they are issued the gold imported by nominated agencies.
3. As far as exporters operating under replenishment scheme are concerned, they may be permitted to receive precious metal from the Nominated Agencies on submission of EP copy of the shipping bill. 

Checks and Balances:

1. Nominated Agencies would supply the gold / silver / platinum for export production and would submit an exporter-wise consolidated monthly account in format enclosed by the 10th of the succeeding month to the Customs station of import;
2. Exporter shall furnish the EP copy of the shipping bill and Bank Realization Certificate to the nominated agencies as a proof of having exported the jewellery made from the duty free goods released to them within the period prescribed in the Foreign Trade Policy;
3. Wherever such proof of export is not produced within the period prescribed in the Foreign Trade Policy, the Nominated Agencies shall deposit the amount of duty calculated at the effective rate leviable on the quantity of precious metal not exported, within 7 days of expiry of the period within which the jewellery manufactured out of the said precious metal was supposed to be exported.

Also refer 

1. Para 4.41 of the Foreign Trade Policy
2. Para 4.94 of the Hand Book of Procedures and 
3. Amended notification 57/2000-Cus. (amended via notification 33/2015-Cus)