Date: 2024-01-31Category: Not ApplicableState: Union GovernmentCountry: India
Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE CEPA as notified by–The International Financial Services Centres Authority (IFSCA)
**Summary:**
This circular, issued by the Reserve Bank of India (RBI) on January 31, 2024 (A.P. DIR Series Circular No. 14; RBI/2023-24/118), addresses guidelines concerning gold imports by Tariff Rate Quota (TRQ) holders under the India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), as notified by the International Financial Services Centres Authority (IFSCA).
The circular permits Authorised Dealer (AD) Category-I banks to allow valid TRQ holders under the India-UAE CEPA to remit advance payments for eleven days for gold imports through the India International Bullion Exchange (IIBX) against their TRQ. This is subject to the directions outlined in A.P. DIR Series Circular No. 04 dated May 25, 2022. This circular previously permitted AD Category-I banks to remit advance payment on behalf of Qualified Jewellers as notified by IFSCA for eleven days for import of gold through IIBX.
This decision follows Notification No. 44/2023 dated November 20, 2023, issued by the Directorate General of Foreign Trade (DGFT), which allowed valid TRQ holders under the India-UAE CEPA, as notified by the IFSCA, to import gold under specific ITCHS codes through IIBX against their TRQ.
The directions within this circular are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and do not override any other legal permissions or approvals required. AD Category-I banks are instructed to inform their constituents and concerned customers about the contents of this circular.
For further information, contact Puneet Pancholy, Chief General Manager, Reserve Bank of India.
Key Entities Referenced
Reserve Bank of India: The central bank of India.
Tariff Rate Quota: A quota for a volume of imports at a certain tariff rate.
India UAE CEPA: IndiaUnited Arab Emirates Comprehensive Economic Partnership Agreement.
International Financial Services Centres Authority: The regulatory body for International Financial Services Centres in India.
A.P. DIR Series Circular No.04: A circular issued by the Reserve Bank of India, dated May 25, 2022, related to advance payments for gold imports.
Qualified Jewellers: Entities permitted to remit advance payment on behalf of for import of gold through India International Bullion Exchange IFSC Ltd IIBX.
India International Bullion Exchange IFSC Ltd: A bullion exchange located in an International Financial Services Centre (IFSC) in India.
Foreign Exchange Management Act, 1999: An Act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
___________________________________________________________________
RBI/2023-24/118
A.P. (DIR Series) Circular No.14 January 31, 2024
To
All Category-I Authorised Dealer Banks
Madam/Sir,
Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-
UAE CEPA as notified by–The International Financial Services Centres Authority
(IFSCA)
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to A.P.
(DIR Series) Circular No.04 dated May 25, 2022, in terms of which AD Category-I banks
have been permitted to remit advance payment on behalf of Qualified Jewellers as
notified by International Financial Services Centres Authority (IFSCA) for eleven days for
import of gold through India International Bullion Exchange IFSC Ltd (IIBX).
2. Further, attention of AD Category-I banks is invited to Notification No.44/2023 dated
November 20, 2023 issued by DGFT, in terms of which, valid Tariff Rate Quota (TRQ)
holders under the India-United Arab Emirates (UAE) Comprehensive Economic
Partnership Agreement (CEPA) as notified by the IFSCA have been permitted to import
gold under specific ITC(HS) codes through IIBX against the Tariff Rate Quota (TRQ).
3. Accordingly, it has been decided that subject to the directions as mentioned in A.P.
(DIR Series) Circular No.04 dated May 25, 2022, AD Category-I banks may allow valid
TRQ holders under the India-UAE CEPA to remit advance payment for eleven days for
import of gold through IIBX against the TRQ.4. AD Category-I banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
5. The directions contained in this Circular have been issued under Section 10(4) and
Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and
are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Puneet Pancholy)
Chief General Manager