What changed
RBI added Rio Tinto (Belgium) and BHP Billiton (Belgium) to the list of mining companies eligible for advance remittance without limit or bank guarantee for rough diamond imports. The existing conditions from the March 2007 circular remain unchanged.
What it means for you
Banks can now process advance remittances for rough diamond imports from two additional suppliers, easing trade finance for the gems and jewellery sector. This reduces documentation burden for importers and AD banks, as no bank guarantee or standby LC is needed for these transactions.
What you must do
- Update internal systems to include Rio Tinto (Belgium) and BHP Billiton (Belgium) as eligible entities for advance remittance.
- Ensure compliance with all conditions from A.P. (DIR Series) Circular No. 34 dated March 2, 2007, including reporting requirements.
- Inform your constituents and customers about the expanded list of approved mining companies.
- Verify that the importer is not a public sector company or government entity before processing such remittances.
Who it affects
AD Category-I banks, Importers of rough diamonds (non-government entities), Gems and Jewellery Export Promotion Council (GJEPC)
What is the key change in this circular?
Two new mining companies—Rio Tinto (Belgium) and BHP Billiton (Belgium)—have been added to the list of suppliers eligible for advance remittance without limit or bank guarantee for rough diamond imports.
Are there any new conditions for these remittances?
No. All existing terms and conditions from the March 2007 circular, including reporting in the specified format, remain unchanged.
Who cannot use this facility?
Public sector companies and government departments/undertakings are not permitted to use this advance remittance facility.