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, A.P. DIR Series Circular No. 14, issued by the Reserve Bank of India (RBI) on January 31, 2024, addresses guidelines for Authorised Dealer (AD) Category-I banks regarding 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 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 the TRQ, subject to the directions outlined in A.P. DIR Series Circular No. 04 dated May 25, 2022. This builds upon the existing allowance for advance payments by Qualified Jewellers, as previously notified by the IFSCA.
The permission is granted further to Notification No. 44/2023 issued by DGFT on November 20, 2023, which allows valid TRQ holders under the India-UAE CEPA to import gold under specific ITCHS codes through IIBX against the Tariff Rate Quota (TRQ).
The directions are issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999, and are without prejudice to other applicable laws. AD Category-I banks are instructed to inform their constituents and customers about the contents of this circular.
Contact: Puneet Pancholy, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector and managing the country's monetary policy.
Tariff Rate Quota: A two-tiered tariff system, applying a lower tariff rate to imports within a specified quantity and a higher rate to imports exceeding that quantity.
India UAE CEPA: India-United Arab Emirates Comprehensive Economic Partnership Agreement.
International Financial Services Centres Authority: Regulatory body for the development and regulation of financial services in International Financial Services Centres (IFSCs) in India.
A.P. DIR Series Circular No.04: A circular issued by the Reserve Bank of India providing guidelines related to foreign exchange regulations. Dated May 25, 2022.
India International Bullion Exchange IFSC Ltd: India's first international bullion exchange, located in the International Financial Services Centre (IFSC) at GIFT City, Gujarat.
DGFT: Directorate General of Foreign Trade, responsible for implementing the foreign trade policy of 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