Amendment in Para 2.107 (TRQ under FTA CECA) of Handbook of Procedure 2015 2020.

## Policy Analysis Report: Amendment to Foreign Trade Policy Regarding Tariff Rate Quota (TRQ) for Gold Imports **1. Executive Summary:** This report analyzes Public Notice No. 23/2015-2020, dated August 29, 2022, which amends the Foreign Trade Policy (FTP) 2015-2020. The amendment modifies the conditions of Annexure IV of Appendix 2A, specifically concerning Tariff Rate Quota (TRQ) authorizations for tariff head 7108 (Gold). The core purpose of this amendment is to refine the eligibility and monitoring of importers utilizing TRQ for gold imports, especially those operating through the India International Bullion Exchange (IIBX) and International Financial Services Centres Authority (IFSCA). The key change involves requiring TRQ authorizations to include the Importer Exporter Code (IEC) of nominated agencies notified by RBI or DGFT/IFSCA, and the GST Identification Number (GSTIN) of the jewellery manufacturer. This is intended to provide greater traceability of gold imports under TRQ and ensure compliance with customs regulations. **2. Introduction:** This report provides an informative analysis of Public Notice No. 23/2015-2020, issued on August 29, 2022, which amends the existing Foreign Trade Policy (FTP) 2015-2020. The report focuses on understanding the specific changes introduced by this amendment and their potential impact on stakeholders, particularly those involved in gold imports. The analysis is based solely on the content of the provided policy text. **3. Policy Overview:** * **Amendment:** This report analyzes an *amendment* to the existing Foreign Trade Policy (FTP) 2015-2020. It modifies Annexure IV of Appendix 2A of the FTP. * **Core Objective(s):** Based on the text, the core objective of this amendment is to strengthen the monitoring and control of TRQ authorizations for gold imports under tariff head 7108, particularly when facilitated through the India International Bullion Exchange (IIBX) and entities notified by the International Financial Services Centres Authority (IFSCA). The amendment aims to improve traceability and compliance with import regulations by requiring additional identification information on TRQ authorizations. **4. Background and Rationale:** This amendment likely addresses concerns related to the potential misuse or lack of transparency in the TRQ system for gold imports, especially with the introduction of the India International Bullion Exchange (IIBX). The addition of IEC and GSTIN requirements suggests an effort to enhance accountability and ensure that TRQ benefits are properly channeled to legitimate jewellery manufacturers. The reference to the Customs Import of Goods at Concessional Rate of Duty Rules, 2017 indicates a desire to ensure compliance with existing customs regulations related to TRQ imports. **5. Key Provisions / Changes:** This amendment modifies the conditions for TRQ authorization under Tariff Head 7108. * **Specific Part Changed:** Condition ‘o’ in Annexure IV of Appendix 2A is being amended. * **New Rule/Provision:** The revised condition requires that TRQ authorization for items under Tariff Head 7108 must now contain: * Importer Exporter Code (IEC) of nominated agencies as notified by RBI in case of banks or DGFT for other agencies or qualified jewellers as notified by IFSCA. * GST Identification Number (GSTIN) of the jewellery manufacturer to whom the TRQ is being issued. * **Difference/Effect of Change:** The amendment introduces stricter identification requirements for those utilizing TRQ for gold imports under tariff head 7108. By mandating the inclusion of IEC and GSTIN, the amendment seeks to improve traceability of gold imports, particularly when routed through nominated agencies and the IIBX. This change is likely intended to ensure compliance with existing customs regulations and prevent misuse of the TRQ benefit. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected by these changes are: * **Jewellery Manufacturers:** Those who import gold under TRQ will need to ensure their GSTIN is included on the authorization. * **Nominated Agencies (Banks, DGFT/IFSCA notified entities):** These entities facilitating gold imports through the IIBX need to ensure their IEC is reflected on the TRQ authorization. * **International Financial Services Centres Authority (IFSCA):** As they are responsible for notifying qualified jewellers. * **India International Bullion Exchange (IIBX):** As the change affects imports through this exchange. * **Customs Authorities:** Responsible for enforcing the revised TRQ conditions. **7. Implementation Aspects (Inferred):** * **Responsible Agencies/Bodies:** * Directorate General of Foreign Trade (DGFT) is responsible for issuing the Public Notice and overseeing the implementation of the Foreign Trade Policy. * RBI and DGFT/IFSCA are responsible for notifying nominated agencies. * Customs authorities are responsible for enforcing the new requirements at the point of import, referencing the Customs Import of Goods at Concessional Rate of Duty Rules, 2017. * **Timelines/Procedures:** The public notice is effective from August 29, 2022. The procedures for customs clearance must follow the Customs Import of Goods at Concessional Rate of Duty Rules, 2017. * **Specific to the changes:** Importers must now provide the GSTIN of the jewellery manufacturer and the IEC of the nominated agency (if applicable) when applying for TRQ authorization. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Improved Traceability:** Enhanced ability to track gold imports under TRQ from the point of entry to the jewellery manufacturer. * **Reduced Misuse:** Minimized risk of TRQ benefits being diverted for unintended purposes. * **Enhanced Compliance:** Increased adherence to customs regulations and the Customs Import of Goods at Concessional Rate of Duty Rules, 2017. * **Greater Transparency:** Improved transparency in gold import transactions facilitated through the IIBX. **9. Conclusion:** Public Notice No. 23/2015-2020 introduces targeted amendments to the Foreign Trade Policy 2015-2020, focusing on strengthening the monitoring and control of TRQ authorizations for gold imports under tariff head 7108. The requirement for including IEC and GSTIN details is a significant step towards enhancing transparency, traceability, and compliance within the TRQ system. This amendment is particularly relevant for stakeholders involved in gold imports through the India International Bullion Exchange (IIBX) and entities notified by the International Financial Services Centres Authority (IFSCA). The changes are expected to lead to more effective utilization of TRQ benefits and reduced opportunities for misuse.

Key Entities Referenced