Guidelines on Import of Silver by Qualified Jewellers as Notified by the International Financial Services Centres Authority (IFSCA)
The International Financial Services Centres Authority (IFSCA) has released updated guidelines on the import of silver by Qualified Jewellers. These guidelines are crucial for Authorized Dealer Category – I (AD Category – I) banks and Qualified Jewellers engaging in international trade through the India International Bullion Exchange IFSC Ltd (IIBX).
According to A.P. (DIR Series) Circular No.04 dated May 25, 2022, AD Category-I banks have been authorized to remit advance payments on behalf of Qualified Jewellers for a period of eleven days for the import of gold through IIBX. This provision aims to streamline the import process and provide financial flexibility to jewellers dealing in bullion.
Building on this framework, the Directorate General of Foreign Trade (DGFT) issued Notification No.35/2023 on October 11, 2023. This notification extends the remit of AD Category-I banks to include the import of silver by Qualified Jewellers, in addition to gold. Specifically, Qualified Jewellers, as recognized by IFSCA, are now permitted to import silver under specified ITC(HS) Codes through IIBX. This marks a significant expansion in the scope of operations for Qualified Jewellers, facilitating greater access to silver for their commercial activities.
AD Category-I banks are now empowered to allow Qualified Jewellers to make advance payments for the import of silver for up to eleven days, subject to compliance with the conditions outlined in A.P. (DIR Series) Circular No.04 dated May 25, 2022. These conditions are designed to ensure that the financial transactions are conducted in a secure and regulated manner, providing a safeguard for both the banks and the jewellers involved.
Moreover, AD Category-I banks are required to disseminate the information contained in this circular to their constituents and customers. This step is crucial to ensure that all stakeholders are informed about the new guidelines and can take advantage of the opportunities they present.
The directions in this circular have been issued under the authority of Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999). It is important to note that these directions are issued without prejudice to any permissions or approvals that may be required under other laws. This clause underscores the necessity for compliance with the broader regulatory framework governing international trade and financial transactions.
In summary, the updated guidelines by IFSCA for the import of silver by Qualified Jewellers via IIBX reflect a significant policy shift. They provide enhanced operational flexibility for jewellers and streamline the import process, thereby fostering a more robust and dynamic bullion market in India.
