REGISTERED NO. D. (D)-72 The Gazette of India
EXTRAORDINARY
PART I—Section 1
PUBLISHED BY AUTHORITY
No. 193] NEW DELHI, TUESDAY, OCTOBER 14, 1980/ASVINA 22, 1902 Separate paging is given to this Part in order that it may be filed as a separate compilation 813 GT/HO
(951)
952 THE GAZETTE OF INDIA : EXTRAORDINARY [PART 1—SEC. 1]953
954 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 1]MINISTRY OF COMMERCE
(Department of Commerce)
IMPORT TRADE CONTROL
Public Notice No.39 - - ITC(PN)/80
New Delhi, ihj 14ih October, 19K0
Subject: Import Policy for April, 1980—March, l98lSchemc forExpoit of Gold Jeweller;, against gold supplied by the foreign buy;r.
F.No. 12/4/7K. EPQVol. II) : Attention is inured to the Import Policj for April, 19R0—March, 1981, Published under the Pepartment of Commerce Public Notice No. 9-ITC (PN)/80 dated the 15th April, 1980.
2. The following amendments shall be made in the said
Import Policy at the appropriate places indicated below : —
Reference
Amendment!.
Sl. No.
Pago No of Im- port Policy 1980-81
4
3
1
32
1
Chapter 17 Registered Exporters para 161
The existing para 161 shall bo renumbered as sub-para. 161(1), and the follo- wing new suh-paia shall be inserted thereafter ;—
"(2) A new scheme called the "Scheme for Export of Guld Jewellery against gold supplied by the foreign buyer" has been notified vide Public Notice No. 39- ITC(PN)/80 dated 14-10-1980. The details of the Scheme are given in Appendix 31."
Appendix 30
207
After Appendix 30, a new Appendix 31, as per annexure to this Public Notice, shall be inserted.
3. This Public Notice shall be effective from the date of
iis issue.
MAM I NARAYANSWAMI, Chief Controller of Imports and Exports
(Annexure to Public Notice No 39 ^]TCfPN)',S0 dated
14-10-1980)
APPENDIX 11
Subject :—S;'ierne for export of gold jewellery against yolu
supplied by the foreign buyer.
Export of gold ornaments and nrlidos (other than coins) as defined in the Gold (Control) Act, 1968, will alone be allowed under the Scheme. Such ornaments and articles when studded will also be permitted to be exported linden tlv) Scheme. Tbe items for export should be 'nndft of gold ol" purity not less than 9.5833 fineness which corresponds to 14 carats.
2. The scheme will apply to the export orders received by Handicrafts and Handlooms Export Corporation, New Delhi either directly or through their eligible associates.
3. The following categories of persons holding valid dea- ler's licence under the Gold law will only be allowed to operate as eigible associates of Handicrafts and Handloom.i Export Corporation for the purpose of the scheme :—
(i) Registered Exporters having valid Registration Certificates issued to them by the Gem and Jewel- lery Export Promotion Council ;
(ii) Cooperative Societies of certified goldsmiths; and
(iii) Corporations owned or controlled by Government holding Export House certificates issued by the Chief Controller of Imports and Exports, New Delhi.
4. The Gem and Jewellery Exports Promotion Council will keep the particulars of the identification marks, if any of its Registered Exporters under, the Hall Marking Scheme of the Indian Standards Institution. But it| would not be obligatory on the part of its Registered Exporters to follow the Hall Marking Scheme until further orders.
Scope of the Scheme
5. The Scheme provides for export of gold ornaments and articles against gold supplied, free of charge, in advance by the foreign buyer concerned, to the cxtejit pf the quantity of the gold used in the manufacture of the items to be ex- ported. Export orders should, therefore, provide for the supply of gold; free of charge by the foreign buyer to the extent required. Such gold should be received, in any ca*", before the export of ornaments or articles ii allowed. Export orders should provide for payment of manufacturing and other costs involved, either by means of un irrevocable let- ter of credit, or payjnept, on casJi-Qn-deliyery basis, ^r ad- vance payments in foreign exchange received through the authorised dealer (Bank), The, documents should be nego- tiated through an authorised dealer in foreign exchange only. The export order should relate to the single buyer overseas, although it may cover more than one item of export.
6. A minimum value added of 15 per cent over the value of the gold content will be insisted upon in respect of exports made under the scheme. The value added will be calculated with reference to the value of the gold content in the items exported, at the price notified by Handicrafts and Handlooms Export Corporation, New Delhi as the price of gold, at the beginning, of each month. For example, i[ the fob value of the items to be exported is Rs. 100 the value of the gold calculated at the notified price should be Rs. 1H7 or less. In the case of studded items, the total value of the gold and other items, namely, stones, gems, pearls and other precious metals, if any, used in the manufacture of the items exported, should be Rs. 87 or less.
7. Exports made under the scheme will not be eligible
for any other incentive.
8. The Handicrafts and Handlooms Export Corporation of India Ltd., New Delhi'(HHEC) has been nominated as the authority to operate the scheme. The export orders against which exports will be allowed will be those as are received directly by this agency or through their eligible asso- ciates.
Import of gold under the Scheme
9. The imported gold shall be clean throujfh the cus- toms authorities only by the said nominated agency i.e. HHEC cither on their own behalf where the export orders are received by them or on behalf of their eligible associates, where the orders have been received through such associa- tes. In the latter case, the exporter shall have to authorise the HHEC to act as its agent to file the Bill of Entry and clear the imported gold from the Customs as also to file the relevant shipping Bill for making the corresponding ex- ports through the customs.
10. Import of pure gold under the scheme will be allow- ed bv the customs authorities to the designated agency i.e. HHFC on the basis of an exemption order, whether general or specific, issued by the Reserve Bank of India, for the purpose of the scheme. In respect of each consignment of
955
imported gold, HHEC will execute before clearance a bond with the customs authorities undertaking to export gold equivalent to the entire quantity of the imported gold as input in the finished gold jewellery or articles, wihin .the period stipulated in the contract or within such further time as may be allowed by the Chief Controller of Imports and Exports, New Delhi, and to pay customs duty leviable on that quantity which is not proved to have been exported. In the case of export orders recetvel by the eligible associa- tes of the HHEC. it will be for the HHEC to secure cor- responding guarantees from their such associates separately, to ensure compliance with contractual obligations.
11. The HHEC shall bq required to deposit the imported gold in Government of Injlia Mint. at Bombay or Calcutta either on the same day on which the gold is cleared through the customs or, at the latest, by the following day, and (r* obtain a proper receipt from the Mint authorities. Since Mint facilities exist only at Bombay and Calcutta, the gold imported under this scheme should be allowed to'be impor- ted only at these two places. The imported gold will bo converted by the Mint into standard ban of .995 purity. The corresponding exports will be allowed by the cwtiMtt authorities only on their satisfaction on the basis of the Mint receipt that the required quantity of gold used in the manu- facture of the items sought to be exported, was received by the Government of India Mint.
Export of gold ornaments etc, under the Scheme.
12. The articles to be exported under the scheme will ber manufactured out of the gold procured from the domestic market. After the exports have been made, and the gold content used in the exported items verified, the HHECi wM obtain the requisite quantity of gold, from the Mint for. b"-- ing used as replenishment for 'he gold used in the items ex- ported, in the manner explained separately in this Public Notice.
13. Exports under the Scheme will be allowed only by air-freight and through the customs houses .it Bombay, Calcutta, Madras and Delhi.
14. Where, the export order is received by the HHEC directly in its own name, the shipping bill for the relevant exports will be filed by the HHEC in its own name us re- quired under the customs regulations. In cases where,, the export order has been, received through the eligible associa- tes of the HHEC, the shipping bill for the relevant exports will be filed in the name of HHEC 0:1 account of the con- cerned associates whose name and address will also aprcor on the shipping bill. Such shipping bills shall also contain and endorsement by HHEC certifying that the exports is being made against an order received through the concerned associate and registered with HHEC giving also the date on which it was registered with them ar,d certifying that the gold for the execution of the exporter order, in question, was duly received from the foreign buyer and dtposited in the Government of India Mint on the date (to be specified) Before making the endorsement, the HHEC will satisfy itself about the quantity of gold used in the manufacture of items to be exported and the minimum pi escribed value added. Such endorsements may be mp.de only by the desig- nated officers of HHEC whose signature will be deposited with the Customs before band for verification.
15. The shipping bill shouJd, inter alia, contain the ex- porter's declaration about the weight and the purity of gold used in each item to be exported, and the fob value of the items to be exported, name of the Custom House through which corresponding import of gold was effected, the Bill of Entry and the date of clearance of gold supnlied by the foreign party. An extra copy of the shippinr bill should also be furnished. However, in cases where shipments are made through a Custom House other than the Custom House through which the corresponding import of coid was effect- ed, two extra copies of the Shipping Bill shov/.ld be filed for being sent by the Custom House after shipment of the goods to the Custom House through which the corresponding im- port was made, for reference at the tirr.e of cancellation of the bond, (Tf the purity pf gold used is the same in respect of all or some of the items, to be exported, the exporter may give the total weight of gold and the total value of
956 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SFX. J]such items as are of the same purity, instead of giving their details itemwisc). In the case of studded items, the ship- pint: bill should show, in addition to gold content as above, the description/weight/value of the stones/gems/pearls used in their manufacture, as well as weight/value of any other precious metals used for alloying gold.
16. Each shipping bill as endorsed will be valid for ex- por;s made only through the customs houses locaed at the plore where the HHEC's office which made the endorsement is situated. It will be valid for shipment tor a period of sev:n days from the date of the endorsement by HHEC, excluding, however, the date on which the endorsement was Blade. If the exports cannot be made within '.his period, the exporter should file a fresh shipping bill. No extension (in' the period of shipment will he allowed in respect of any 'shipping bill.
17. At the time of export, the exporter shall present to the concerned customs authority, alonu with the shipping Bill, three copies of the connected invoices as well as other .documents as may be required by the customs. Before allow- ing the export, the said authority will, inter alia :—
fi) do the necessary checks to verify that the weight and the purity of gold used in each item for ex- port is as per the exporter's declaration in the said documents ; and
(ii) satisfy itself that the export vahie (minus Ihe cost of gold) declared by the exporter is in accord- ance with the Customs Act anil the Foreign Px- change Regulation Act.
18. The weight and purity of the gold content of the items so passed for export will be- verified by the customs uuthority on the relevant shipping bills. The customs autho- rity will nlso attest the connected invoices and return two copies of the shipping bill and the connected invoices—one c.opy to the person who presents the export documents and the other copy to the office of IIHEC directly.
19. The exporter shall, within 15 davs f>om the dote of export, submit to the same office of HHEC which endorsed the shipping bill, an application in the prescribed form and manner for release of gold and attach "thereto the customs attested invoice, customs authenticated shipping bill and the bank certificate in original evidencing The negotiation of locuments and the flight number by which the cosignment was exported. The HHEC, will, alter verifying the docu- ments, release the gold to the exporter to the extent of the gold used in the mf nufacfui1* of ihe iewellcry exported as certified by the customs on the shipping bill.
20. For the purcose of calcuhting the quantity of gold to be issued, the HHEC will multiply the weight of the gold content of the exported item, as certified by the Customs authority which allowed the export, by the following which- ever is appropriate :—
(i) Their caratage divided by 24, if the declaration is
in carats ; or
(ii) Their fineness if the declaration is in fineness.
The figure of pure gold so calculated will be rounded to the nearest 10th of a gramme. No allowance will be allow- ed for any wastage.
21. Where the export order was secured directly by HHEC and the exports were made bv them on their own, the quantity of gold used in the items exported will be taken by HHEC on its records for replenishment after having satis- fied itself with, respect to the quantity to which it is entitled.
Applicability of Gold Control Law,
22. The HHEC shall maintain a complete account con- signment-wise of the gold imported foi execution of each export order, the exports effected and the quanlily of gold released against such exports. At the end ot each qujiter viz. 31st December, 1980 and 31st March, 1981 the HHEC shall submit a report t0 the Reserve Bank of India, Ministry of Commerce and the Chief Controller of Imports and Expor- ters indicating the total quantitv ol gold imported, the total quantity of gold used in exports effected Hnd the total quan- tity of gold released as replenishment against exports thus effected.
In order to get a discharge of its obligations under the bond executed by it with the Customs authorities the HHEC will furnish to the concerned Collector of Customs a state- ment indicating the Bill of Entry No against which gold was imported for execution of the contract, date cf impor- tation, quantity of gold imported, number of each of the Shipping Bill against which corresponding shipments of ornaments/articles were made, description of the goods ex- ported and the gold content in respect of each Shipping Bill as certified by the concerned customs authorities. Such ap- plications for the cancellation of bond will have to be n:ade immediately after the completion of the shipment of :'ll the ornaments/articles to be exported against a particular con- tract or the expiry of the period of export stipulated in the relevant contract with the foreign suppliei or geld, which- ever is earlier. In cases where Lny oi the shipments of orna- ments/articles are made though a Custom House other than the one through which the corrcspjr.iling import cl gold was effected, the HHEC, with their application for cancella- tion of the bond, will also furnish copies of the Shipping; Bilk against which exports are effected through Custom HoubC other than the one through which the gold was irrponcd. Further details of supplementary procedures checks and in- structions if necessary would be furnished by the Collector of Customs concerned. HHEC would for this purpose, get in touch with the Collectors.
23. The entire transactions under the Scheme will be sub-
ject to all the provisions of the gold control law.
24. The following of ths bran^csc of HHEC will rtftnse
gold in accordance with the scheme :—
fi) The General Manager, HFEC cf Indid Ltd., 11-A, Rouse Avemie Lane, Lok Kalyan Bhavun, New Delhi-110002
(ii) The Branch Manager, HHEC of India Ltd., 11th
Flor, Nirmal Building, Naruman Point, Bombay.
(iii) The Branch Manager, HHEC of India Ltd., 10th Floor, 6/A Raja Subodh Mullick Square, Calcutta.
(iv) The General Manager, HHEC of India Ltd., Sudarshan Building. 16/1 Whites Road, Madras.