What changed
Earlier restrictions on gold imports (from May-June 2013) were rationalized. Now, every import lot must have at least 20% earmarked for exports and held in customs bonded warehouses. Fresh imports are permitted only after 75% of that bonded gold is actually exported. Domestic sale is allowed only to jewellery businesses or bullion dealers supplying jewellers.
What it means for you
Banks and nominated agencies face tighter compliance: they must track export-linked gold separately and ensure export obligations are met before new imports. This curbs speculative gold imports and channels gold primarily for export use, reducing pressure on the current account deficit. Banks need to monitor transactions across branches to ensure the 20/80 rule is followed.
What you must do
- Ensure every gold import lot has 20% earmarked for exports and held in customs bonded warehouse.
- Allow fresh imports only after at least 75% of the bonded gold (i.e., 15% of original lot) is exported.
- Restrict domestic supply of gold to entities engaged in jewellery business or bullion dealers supplying jewellers.
- Monitor compliance across all branches and centres; head offices/IBDs to oversee the scheme.
- Update internal systems to track export-linked gold and bonded warehouse balances per lot.
Who it affects
All scheduled commercial banks that are Authorised Dealers in foreign exchange, Nominated banks and agencies for gold import, Premier/star trading houses, SEZ units, and EoUs importing gold, Jewellery businesses and bullion dealers
What is the 20/80 principle for gold imports?
For every lot of gold imported, at least 20% must be exclusively made available for export purposes and held in a customs bonded warehouse. The remaining 80% can be sold domestically, but only to jewellery businesses or bullion dealers supplying jewellers.
When can a nominated bank import fresh gold?
Fresh imports are allowed only after exports have taken place to the extent of at least 75% of the gold remaining in the customs bonded warehouse from the previous lot. For example, if 20 kg is in bonded warehouse, at least 15 kg must be exported before new imports.
Are SEZ units and EoUs allowed to import gold for domestic use?
No. Entities/units in SEZ and EoUs, as well as Premier and Star trading houses, are permitted to import gold exclusively for the purpose of exports only. They cannot use imported gold for domestic sale.