Executive Summary:
This notification, issued by the Directorate General of Foreign Trade on February 23, 2017, announces amendments to Paragraph 4.34(i) of Chapter 4 of the Foreign Trade Policy (FTP) 2015-2020. The amendment concerns the replenishment of precious metals (gold, silver, and platinum) for exporters of jewellery and related articles. This notification takes immediate effect from the date of issue.
Key Points / Main Content:
Amendment to Foreign Trade Policy 2015-2020:
* Paragraph 4.34(i) of Chapter 4 of the FTP 2015-2020 is amended concerning precious metal replenishment.
Precious Metal Replenishment for Exporters:
* Exporters of gold, silver, and platinum jewellery may obtain these metals as input from Nominated Agencies, either in advance or as replenishment after export.
* This process must adhere to the procedure specified in this regard.
Conditions for CENVAT Credit Availment:
* If CENVAT credit was availed on precious metals, and gems/jewellery products are exported availing rebate, precious metal replenishment is allowed only if duty-free inputs are used to manufacture dutiable goods.
* This manufacture must occur in the same factory unit where the exported gems/jewellery products were made.
Restriction on Transfer of Duty-Free Inputs:
* Sale or transfer of duty-free precious metal inputs is not permitted.
Impact Analysis:
Exporters of Gold, Silver, and Platinum Jewellery:
* Impact: Modified procedures for obtaining precious metals, affecting sourcing and cost management. Need to comply with new regulations regarding CENVAT credit and duty-free input usage.
* Action Required: Understand and implement the amended procedures for precious metal replenishment. Ensure compliance with rules on duty-free input usage and restrictions on transfer.
Nominated Agencies:
* Impact: Must adhere to revised procedures for providing precious metals to exporters.
* Action Required: Familiarize themselves with the amended procedures for precious metal supply.
Customs Authorities:
* Impact: Responsible for enforcing the amended policy and ensuring compliance.
* Action Required: Update procedures to reflect the new regulations concerning precious metal replenishment and duty-free input usage.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A policy document regarding foreign trade, frequently referenced in the notification and subject to amendment.
Directorate General of Foreign Trade: An organization under the Ministry of Commerce and Industry, responsible for foreign trade regulation and issuing the notification.
Ministry of Commerce and Industry: The Indian government ministry responsible for Commerce and Industry.
Foreign Trade (Development and Regulation) Act, 1992: An act of the Indian Parliament that provides for the development and regulation of foreign trade.
New Delhi: The location where the notification was issued.
Gold: Precious metal that is the subject of the policy amendment regarding export and import.
Silver: Precious metal that is the subject of the policy amendment regarding export and import.
Platinum: Precious metal that is the subject of the policy amendment regarding export and import.
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1059 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF COMMERCE & INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 23rd February, 2017
No. 40 /2015-2020
Subject: Amendment in Paragraph 4.34(i) of Chapter 4 of the Foreign Trade Policy (FTP) 2015-2020.
S.O. 619(E).—In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992, read with
paragraph 1.02 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central
Government hereby makes following amendments in Para 4.34 (i) of Chapter 4 of Foreign Trade Policy 2015-20.
2. Paragraph 4.34 (i) of FTP 2015-20 is amended to read as under:
Exporter of gold / silver / platinum jewellery and articles thereof including mountings and findings
may obtain gold / silver / platinum as an input for export product from Nominated Agency, in advance
or as replenishment after export in accordance with the procedure specified in this behalf. In case
where CENVAT credit facility on Precious metal (Gold, Silver and Platinum) as input has been
availed and Gems and Jewellery products are exported availing rebate, then replenishment of
Precious metal shall be allowed provided that such inputs procured duty free are used in the
manufacture of dutiable goods in the factory/unit, where exported Gems and Jewellery products
were manufactured. Sale/transfer of such duty free Precious metal inputs shall not be allowed.
3. Effect of Notification: Paragraph 4.34(i) of FTP 2015-20 related to replenishment of
Precious metals is amended.
[F. No. 01/94/180/12/AM17/PC-4]
AJAY KUMAR BHALLA, Director General of Foreign Trade
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.