CBEC removes special warehouse need for nominated agencies importing gold for export

MUMBAI: In a major move to facilitate ease of doing business, the Central Board of Excise & Customs ( CBEC) has removed the need for a special warehouse with double locking for nominated agencies importing gold for export purposes.

This means RBI-authorised banks, agencies like MMTC, STC, etc, can import the quantity required by the exporters and not be bound by warehousing restrictions. For instance, if an agency has a warehousing restriction of 100 kilos and exporters need 500 kilos the nominated agency has to import 100 kilos five times as at any given time it cannot store more than 100 kilos.

“With CBEC doing away with the need for a special warehouse now the agency can import 500 kilos at once, instead of five times earlier by providing bond against duty, bank guarantee, etc,” said Nirakar Chand, CEO (precious metals), Diamond India Ltd, said.

ET was the first to report in its edition of June 9th that the special warehouse requirement with double locking by CBEC through a circular on May 14, this year had caused a halt in gold imports by nominated agencies for export purposes, causing much inconvenience to jewellery and medallion exporters.