Executive Summary:
This notification, dated September 2, 2019, amends Para 4.34 i of the Foreign Trade Policy (FTP) 2015-2020. It concerns the import of gold, silver, and platinum for manufacturing jewellery and related articles for export. The amendment modifies the conditions for replenishment of these precious metals.
Key Points / Main Content:
Amendment to Para 4.34 i of FTP 2015-2020:
The Central Government has amended the Foreign Trade Policy 2015-2020.
Precious Metal Replenishment:
Exporters of gold, silver, and platinum jewellery can obtain these metals as input from nominated agencies, either in advance or as replenishment after export. This is in accordance with a specified procedure.
Customs Notification:
Replenishment of gold, silver, and platinum is subject to Customs notification No. 57/2000-Customs dated 08.05.2000, as amended.
Impact Analysis:
Exporters of Gold, Silver, and Platinum Jewellery:
Impact: The amendment affects the conditions under which exporters can replenish gold, silver, and platinum.
Action Required: Exporters need to be aware of the amended Para 4.34 i of the FTP 2015-2020 and ensure compliance with Customs notification No. 57/2000-Customs dated 08.05.2000.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A trade policy document issued by the Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade.
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that provides the legal framework for the foreign trade policy.
Ministry of Commerce and Industry: The Indian government ministry responsible for the formulation of foreign trade policy.
Directorate General of Foreign Trade: The agency of the Ministry of Commerce and Industry responsible for implementing the foreign trade policy.
Central Government: The Union Government of India.
Central Excise Rules, 2002: Rules pertaining to central excise duties in India.
CGST Act: Central Goods and Services Tax Act.
Alok Vardhan Chaturvedi: Director General of Foreign Trade & Ex-officio Secretary.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 2nd September, 2019
No. 16 / 2015-2020
Subject: Amendment of Para 4.34 (i) of the Foreign Trade Policy 2015-20.
S.O. 3157(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, 2015-20, as amended from time to time, the Central Government hereby
makes following amendments in Foreign Trade Policy 2015-20.
The current Para 4.34 (i) of the Foreign Trade Policy reads as under:
(i) 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.
No replenishment of the precious metal shall be available to the exporter/manufacturer where the exporter /
manufacturer avails any of the benefits in respect of exported product.
a. CENVAT Credit is availed on inputs or services by the manufacturer.
b. Finished goods stage rebate is availed under Notification No 19/2004-CE (NT) dated 06.09.2004.
c. Input stage rebate is availed in respect of duty of excise paid on the precious metal bar or articles of precious
metal under Notification No 21/2004-CE(NT) dated 06.09.2004.
d. Precious metal or articles of precious metal are procured by the manufacturer under rule 19(2) of the Central
Excise Rules, 2002.
e. Input Tax Credit is availed on inputs or services or both by the exporter under Chapter V of CGST Act; or
refund of ITC or refund of IGST is availed under section 54 of the CGST Act.¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3
The amended Para 4.34 (i) of the Foreign Trade Policy reads as under:
(i) 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.
Replenishment of gold / silver / platinum will be subject to Customs notification No. 57/2000-Customs
dated 08.05.2000, as amended.
Effect of the Notification: Para 4.34(i) of FTP 2015-20 stands amended.
[F. No. 01/94/180/296/AM-19/PC-4]
ALOK VARDHAN CHATURVEDI, Director General of Foreign Trade & Ex-officio Secy.
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