Laws and sections by number or title, due dates, pages, and updates.
Qualified Jewellers can import gold and silver through the India International Bullion Exchange subject to specific eligibility criteria and operational norms. The entity must file due GST returns up to the preceding month, maintain a minimum net worth of INR 25 crore, and derive 90% of average annual turnover in the last 3 financial years from precious metals. Qualified Jewellers must remit advance payments through an Authorised Dealer bank based on an IIBX authenticated document and purchase Bullion Depository Receipts without entering sell orders. Any unutilised advance remittance at the end of eleven calendar days from the date of remittance must return to the AD bank. Limited Purpose Trading Members are renamed as Special Category clients.
What you must do
Key dates
Who is affected
Thresholds
If you do not comply
Ask about this circular
[Image omitted. See the official document.]
F.No 329/IFSCA/Bullion MIIs/2023-24/02
December 11, 2023
To
Bullion Exchange in the International Financial Services Centre (IFSC) Bullion Clearing Corporation in the IFSC Bullion intermediaries in the IFSC Vault Managers in the IFSC All market participants on the Bullion Exchange in the IFSC
Dear Sir/Madam
Import of gold and silver by Qualified Jewellers through India International Bullion Exchange
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry vide its Notification No. 49/2015-2020 dated January 05, 2022, has inter alia specified that Qualified Jewellers as notified by the International Financial Services Centres Authority (IFSCA) will be permitted to import gold under ITC(HS) Codes 71081200 and 71189000, through India International Bullion Exchange IFSC Ltd. (IIBX). Accordingly, IFSCA, vide its Circulars dated January 19, 2022 and August 05, 2022, has issued guidelines and Standard Operating Procedure for Qualified Jewellers to import gold through IIBX.
Subsequently, DGFT has issued a Notification No. 35/2023 dated October 11, 2023 wherein it has inter alia specified that Qualified Jewellers as notified by the IFSCA will be permitted to import silver under ITC(HS) Codes 71069110 and 71069290 through IIBX. Further, in terms of the extant Import and Export Policy issued by the DGFT, import of silver bars under ITC(HS) Code 71069220 is free subject to RBI regulations.
Page 1 of 9
[Image omitted. See the official document.]
While enabling import of silver by eligible entities through IIBX, it has been decided to issue a consolidated Circular for the purposes of import of gold and silver in accordance with the abovementioned DGFT notifications, and the circulars/directions issued by the Reserve Bank of India (RBI) in this respect. This Circular (annexed to this letter) shall supersede IFSCA Circulars no. 329/IFSCA/DPM/TS/QJ/2021-22/1 dated January 19, 2022 and 329/IFSCA/DPM/TS/QJ/2022-23/2 dated August 05, 2022.
Further, with a view to more accurately represent the nature of participation of Limited Purpose Trading Members (LPTMs) as clients, it has been decided to rename ‘LPTM’ as ‘Special Category’ client.
This Circular has been issued in exercise of the power conferred under Section 12 of the International Financial Services Centres Authority Act, 2019 r/w Regulation 58 of the International Financial Services Centres Authority (Bullion Exchange) Regulations, 2020 and in pursuance of DGFT Notifications mentioned in Para 1 and 2 of this Circular.
A copy of this Circular is available on the website of International Financial Services Centres Authority at www.ifsca.gov.in at “Legal →Circulars”.
Yours faithfully
(Kamlesh Sharma) Chief General Manager Department of Metals and Commodities email: kamlesh.sharma27@ifsca.gov.in Tel: +91 79 6180 9810
Page 2 of 9
[Image omitted. See the official document.]
CIRCULAR
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, vide its Notification No. 49/2015-2020 dated January 05, 2022, and Notification No. 35/2023 dated October 11, 2023 has inter alia specified that Qualified Jewellers as notified by the International Financial Services Centres Authority (IFSCA) will be permitted to import gold under ITC(HS) Codes 71081200 and 71189000, and silver under ITC(HS) Codes 71069110 and 71069290, respectively, through India International Bullion Exchange IFSC Ltd. (IIBX). Further, in terms of the extant Import and Export Policy issued by the DGFT, import of silver bars under ITC(HS) Code 71069220 is free, subject to RBI regulations.
In this context, it has been decided that the entities fulfilling the following conditions shall be considered as ‘Qualified Jewellers’ and shall be permitted to transact on IIBX as clients of Bullion Trading Members or as ‘Special Category’ clients for the purpose of import of gold and silver under abovementioned ITC(HS) codes:
Page 3 of 9
[Image omitted. See the official document.]
"Net Worth" means the aggregate value of the paid-up share capital (or capital contribution) and all reserves created out of the profits, securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
The entity shall provide the net worth certificate from a practicing chartered accountant or a practicing cost accountant or a practicing company secretary.
The minimum net worth specified above shall be maintained by the entity at all times and reviewed by IIBX on a half-yearly basis. In case of net worth falling below the minimum requirements, IIBX shall suspend the participation of the entity from transacting on IIBX till the net worth is restored to the minimum required level. The notification of the entity as Qualified Jeweller may also be revoked by the IFSCA based on the recommendation by IIBX.
The detailed process to be followed for notification as a Qualified Jeweller is provided here under:
Page 4 of 9
[Image omitted. See the official document.]
with the supporting documents and applicable fees, if any. The option to participate as a client of Bullion Trading Member or as ‘Special Category’ client shall be communicated by the applicant to IIBX at the time of submitting its application for notification as a Qualified Jeweller.
