The Central Board of Indirect Taxes and Customs (CBIC) has amended the Customs Act, 1962, with the aim of facilitating gold imports by valid Tariff Rate Quota (TRQ) holders under the India UAE Comprehensive Economic Partnership Agreement (CEPA).
The Ministry of Finance, Department of Revenue, has taken a proactive step by issuing Notification No. 66/2023-Customs, addressing public interest concerns and emphasizing the government’s commitment to fostering a conducive trade environment.
The core modification introduced through this notification centers around Condition No. 2 in the Annexure of the preceding notification (No. 22/2022-Customs). This involves crucial changes to the Importer-Exporter Code (IEC) and the conditions applicable to entities such as banks, agencies, and qualified jewelers.
The amendments specify distinct requirements for Importer-Exporter Code (IEC) in the case of nominated agencies, including those recognized by the Reserve Bank of India (RBI) and the Directorate General of Foreign Trade (DGFT).
Notably, the revised regulations include qualified jewelers, as notified by the International Financial Services Centres Authority (IFSCA), thereby expanding the scope of entities eligible for certain import privileges.
The notification introduces flexibility for Valid India UAE TRQ Holders, in line with the IFSCA notification through the India International Bullion Exchange (IIBX). This enables them to obtain physical delivery of imports through IFSCA registered vaults situated in Special Economic Zones (SEZs).
An essential aspect of the amendments is the exemption from Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, when the importer and the TRQ Holder are the same entity. This exemption streamlines processes and enhances efficiency for entities engaged in import and trade.
The amendments provide clarity on IEC requirements and extend eligibility to qualified jewelers, and offer practical solutions for TRQ Holders to import gold.
Importantly, the exemption clause simplifies processes for entities acting as both importers and TRQ Holders. Stakeholders in international trade are urged to thoroughly understand these changes to align their operations with the updated provisions of the Customs Act.
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