The Reserve Bank of India (RBI) has announced new guidelines to permit qualified jewellers to import gold through the India International Bullion Exchange IFSC Ltd. (IIBX) or any other exchange. IFSCA and the DGFT, the Government of India, must sanction the other exchanges. All payments by authorised jewellers for gold imports through IIBX must be done using an exchange mechanism recognised by IFSCA in accordance with the IFSC Act and regulations, according to the RBI.
- According to the new recommendations, approved dealers banks may allow Qualified Jewellers to make eleven-day advance payments for gold imports through IIBX in accordance with the existing Foreign Trade Policy and Regulations published under the IFSC Act.
- In accordance with the terms of the sale contract or other document in the nature of an irrevocable purchase order in terms of the IFSC Act and regulations made thereunder by IFSCA, AD banks shall ensure that advance remittance for such import through exchange/s authorised by IFSCA is in accordance with the terms of the sale contract or other document in the nature of an irrevocable purchase order in terms of the IFSC Act and regulations made thereunder by IFSCA.
- Furthermore, licenced dealers banks must perform all due diligence and guarantee that the remittances sent are only for bona fide import transactions through IFSCA-approved exchanges.
- The RBI further noted that advance remittances for gold imports should not be used in any way to import gold worth more than the advance remittance made.
- QJ shall send the Bill of Entry (or any other applicable document issued/approved by Customs Department for evidence of import) issued by Customs Authorities to the AD bank from which advance payment has been made if gold is imported through IIBX.