FEMA - Clarification on Import of precious and semi precious stones

RBI/2012-13/418
A.P. (DIR Series) Circular No.83

February 20, 2013

To
      All Category - I Authorised Dealer Banks

Madam / Sir,

Foreign Exchange Management Act,1999 - Import of precious and semi precious stones- Clarification

Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the provisions contained in A.P.(DIR Series) Circular No.34 dated September 24, 2012, in terms of which AD Category – I banks have been permitted to approve Suppliers’ and Buyers’ Credit (trade credit) including the usance period of Letters of Credit  opened for import of gold in any form including jewellery made of gold/ precious metal or and studded with diamonds/semi precious/ precious stone should not exceed 90 days from the date of shipment.

2. It is clarified that Suppliers’ and Buyers’ Credit (trade credit) including the usance period of Letters of Credit opened for import of precious stones and semi-precious stones should not exceed 90 days from the date of shipment. The revised directions will come into force with immediate effect.

3. The instructions issued for direct import of gold vide A.P.(DIR Series) Circular No.2 dated July 9, 2004, import of Platinum / Palladium/ Rhodium /Silver vide A.P.(DIR Series) Circular No.12 dated August 28, 2008, advance remittance for import of rough diamonds, vide A.P.(DIR Series) Circular No.21 dated December 29, 2009, import of rough,cut and polished diamonds vide A.P.(DIR Series) Circular No.59 dated May 6,2011 andimport of gold in any form including jewellery made of gold/ precious metal or and studded with diamonds/semi precious/ precious stone vide A.P.(DIR Series) No. 34 dated September 24, 2012 shall remain unchanged.

4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under Section 10 (4) and Section 11 (1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rashmi Fauzdar)
Chief General Manager