The deadline for availing duty-free benefits on the import of precious metals for manufacturing jewellery and gold coins for exports has been extended by six months.
In a circular issued on Thursday, the Central Board of Indirect Taxes and Customs (CBIC) said that businesses will get the extra time to meet their export obligations in view of factory closures during the second covid wave.
“Businesses are allowed to import precious metals duty-free provided they re-export within three months. There are several state agencies and other Reserve Bank of India-approved entities that take benefit of this provision. The notification gives extra time of six months if the due date for exports falls between 1 February and 30 June 2021,” said Abhishek Jain, partner, EY.
“This change will benefit importers of silver, gold and platinum under two export promotion schemes—export through exhibitions/export promotion tours/export of branded jewellery; and export against supply by nominated agencies,” said Rajat Mohan, senior partner, AMRG & Associates.
The nominated agencies are Metals and Minerals Trading Corp. Ltd (MMTC), Handicraft and Handloom Export Corp. (HHEC), State Trading Corp. (STC), Project and Equipment Corp. of India Ltd (PEC) and other agencies authorized by the RBI, as per India’s foreign trade policy, which allows duty-free import of gold, silver and platinum that is used as inputs for export production.