What changed
RBI clarified that refineries can initially import gold dore up to 15% of their gross average viable quantity based on license entitlement, on a FIFO basis, in the first two months. Subsequent imports must be determined lot-wise based on export performance, with no more than 80% allowed for domestic sale before the next import. Imports thereafter are capped at 5 times the quantum for which proof of export has been submitted, on an accrual basis.
What it means for you
Banks acting as authorized dealers must ensure refineries comply with the new 20:80 principle (20% export, 80% domestic sale) and FIFO release of refined gold. The 5x export-linked import cap tightens working capital cycles for refineries, potentially reducing gold import volumes. CBEC will monitor compliance, so banks need to verify export proof before allowing further imports.
What you must do
- Update internal procedures to verify refineries' license entitlement and gross average viable quantity for initial dore imports.
- Ensure that before each subsequent import, refineries have not sold more than 80% of the previous lot domestically.
- Require proof of export (on accrual basis) before allowing imports beyond the initial 15% threshold, capped at 5 times the export quantum.
- Monitor FIFO-based release of refined gold and maintain records for CBEC inspection.
Who it affects
Scheduled commercial banks authorized as ADs in foreign exchange, Agencies nominated for gold import, Gold refineries importing dore
What is the initial import limit for gold dore under this circular?
Refineries can import dore up to 15% of their gross average viable quantity based on license entitlement, on a FIFO basis, for the first two months.