SPECIAL PROVISONS FOR GEMS AND JEWELLERY UNITS

 

 

 

 

 

 

1.       Value of Bond-Cum Legal Undertaking

2.       Import

3.       Import of rough diamonds

4.       Procedure for delivery through the Port, Inland Container Depot

5.       Procurement of cut and polished diamonds and precious and semi precious stones from Domestic Tariff Area

6.       Destruction of Goods

7.       Export of Samples

8.       Procedure for export

9.       Export of Goods as Personal Baggage

 

1.       Value of Bond-Cum Legal Undertaking –Rule 22(1)(f)

The value of the Bond-cum-Legal Undertaking in respect of gems and jewellery units shall be calculated on rates as notified by the Central Government, from time to time.

2.       Import -Rule 27(6)

A gem and jewellery Unit may also source on outright purchase basis or loan basis, gold or silver or platinum through the Nominated Agencies and where such sourcing is on loan basis, the same shall be subjected to the conditions applicable to such transactions under the provisions of the Foreign Trade Policy in force:

The conditions applicable to loan transaction shall not apply where the Unit converts such loan into outright purchase by paying the outstanding loan amount and interest within the period for export prescribed under the Foreign Trade Policy applicable to the loan transaction.

3.       Import of rough diamonds- Rule 27(8)

No import or export of rough diamonds shall be permitted unless the shipment parcel is accompanied by Kimberley Process Certificate issued by the Development Commissioner.

The international certification scheme for rough diamonds entitled: “Kimberley Process Certification Scheme” was adopted in a Ministerial meeting held at Interlaken , Switzerland , on 5^th November, 2002 . India is a signatory to the Interlaken Declaration.

KP Certificate is a forgery resistant document with a particular format  which identifies a shipment of rough diamonds as being in compliance with the requirements of the Certification Scheme ( ie KPCS). The KP Certificate contains the title “ Kimberley Process Certificate”, country of origin, the certificate number, date of issuance, date of expiry, issuing authority, the details of importer and exporter, carat weight/mass, value in US$, number of parcels in shipment, relevant HS code and validation of Certificate by the Exporting authority. Further, it may also have additional details such as quality, characteristics of rough diamonds in the shipment etc

4.       Procedure for delivery through the Port, Inland Container Depot -Rule 29(3)

The procedure for delivery through the Port, Inland Container Depot, Custodian’s designated customs area, in case of high value parcels imported by gem and jewellery Units, located in Special Economic Zone shall be as under: -

(i)   where goods are consigned to an Inland Container Depot located in a Special Economic Zone, transfer of goods shall be by the carrier appointed for the purpose and the goods shall be delivered to the Inland Container Depot in the Special Economic Zone by the container line or custodian.

(ii)   after receipt of goods in the Special Economic Zone Inland Container Depot, delivery of goods shall be made by the custodian of the Inland Container Depot after verification of marks and number of packages of less than container load cargo and verification of seal of full container load cargo, in the premises of the custodian on the basis of assessed Bill of Entry.

(iii) filing of advance Bill of Entry may not be required before arrival of the goods in the Special Economic Zone and the Special Economic Zone Importer may, at his option, file the Bill of Entry before or after arrival of goods:

      Where verification cannot be undertaken in the premises of the custodian or if the Special Economic Zone importer so requests, goods shall be allowed to be taken to the premises of the Special Economic Zone Importer, by the Specified Officer and thereafter the goods may be verified there.

(iv)  there shall be no examination of the goods and the goods shall be deemed to be out of charge on the day of handing over of the goods to the Special Economic Zone Importer.

                                

 

5.       Procurement of cut and polished diamonds and precious and semi precious stones from Domestic Tariff Area.- Rule 30(16)

A gem and jewellery Unit may procure cut and polished diamonds and precious and semi precious stones from the Domestic Tariff Area, as per the following procedure, namely :-

(i)   the parcel shall be brought into the Zone in a sealed condition by the authorized representative of the Domestic Tariff Area supplier or Customs House Agent, who shall present the invoice clearly marked original, duplicate and triplicate to the Authorized Officer at the gate;

(ii)   the Authorized Officer shall register the invoice at the gate of the Special Economic Zone and endorsing the registration number on the original and duplicate copies of the Invoice and the parcel shall be allowed to be taken into the premises of the Unit and such goods shall be separately accounted for by the Unit;

(iii) the duplicate copy of the invoice with the endorsement of the Authorized officer shall be forwarded to the supplier in the Domestic Tariff Area for claiming Replenishment Licence from the Development Commissioner of the Special Economic Zone.

6.       Destruction of Goods - Rule 39(2)

Where it is not possible to destroy goods within the Special Economic Zone, destruction of goods shall be carried out, outside the Special Economic Zone with the permission of Specified Officer and in the presence of the Authorized Officer:

Provided that destruction of precious and semi-precious stones and precious metals shall not be allowed.

7.       Export of Samples Rule 45(7)

A Unit may export free samples without any limit, including samples made in wax moulds or silver mould or non precious metal alloy or rubber moulds through all permissible modes of export.

8.       Procedure for export Rule 46(2)

The procedure for export of gems and jewellery shall be as under:-

(i)   the shipping bill and the invoice alongwith packing list presented to the authorized officer shall contain the following:

(a) description of the items;

(b) weight and purity of gold or silver or platinum and the type of gems stone, such as, diamond, ruby, sapphire, cubic zircon and the like which has been used for studding and its weight in carats; and

(c) free on board price rate of the jewellery item and quantity in pieces and the total value;

(ii)   the Unit may export jewellery on the basis of a notional rate certificate issued by the Nominated Agency and this rate will be based on the prevailing Gold or US Dollar rate and the US Dollar or Indian Rupees rate given in the notional rate certificate:

      The certificate issued by the Nominated Agency shall not precede the date of shipment by more than three working days or as may be notified by Central Government;

(iii) the Unit obtaining gold or silver or platinum from the Nominated Agency on loan basis shall export gold or silver or platinum jewellery within the period prescribed for the same under the Foreign Trade Policy:

      The unit can convert such loan into outright purchase by paying the outstanding loan amount plus interest provided they exercise this option within the period prescribed under the Foreign Trade Policy.

(iv) in the case of export of jewellery on the basis of notional rate certificate issued by the Nominated Agency, the Unit may fix the price and repay the gold loan within the prescribed period for export as may be notified by the Central Government from time to time:

      The price shall be communicated to the Nominated Agency for issue of a certificate showing the final confirmation of the rate to the bank negotiating the document.

9.       Export of Goods as Personal Baggage Rule 46(6)(x)

A Unit may export goods as personal carriage of gems and jewellery items of the value not exceeding US$ 2 million or other goods not exceeding Rs 5 lakhs in value, for holding or participating in overseas exhibitions after permission from  Development Commissioner  subject to the following conditions, namely.-

(i)   the Unit shall declare personal carriage of such goods to the Customs authorities at the airport while leaving the country and obtain necessary endorsement ; and

(ii)   Unit shall bring back goods or repatriate the sale proceeds within 45 days from the date of closure of exhibition through normal banking channels or within such days as may be notified by the Central Government;

(iii) for personal carriage of goods by foreign bound passenger, the following documents shall be submitted by a Unit as proof of exports, namely.-

(a) Copy of shipping bill filed by the Unit;

(b) Copy of the Currency Declaration Form filed by the Foreign buyer with the Customs at the time of his arrival;

(c) Foreign exchange realisation or encashment certificate from the Bank;