What changed
RBI extended the advance remittance facility, previously available only to Qualified Jewellers, to valid TRQ holders under the India-UAE CEPA for gold imports through IIBX. This aligns with DGFT Notification No.44/2023 allowing TRQ holders to import gold under specific ITC(HS) codes via IIBX. The 11-day advance payment window and other conditions from the May 2022 circular remain unchanged.
What it means for you
Banks can now process advance remittances for gold imports by UAE CEPA TRQ holders through IIBX, expanding the eligible importer base. This facilitates smoother trade finance operations for lenders dealing with bullion imports under the bilateral trade agreement. Banks must ensure compliance with the original May 2022 circular's conditions and verify TRQ validity.
What you must do
- Update internal forex policies to include TRQ holders under India-UAE CEPA as eligible for 11-day advance remittance for gold imports via IIBX.
- Verify TRQ holder status and ITC(HS) code compliance as per DGFT Notification No.44/2023 before processing remittances.
- Communicate the revised facility to relevant trade finance and bullion desk teams, and inform customers who are TRQ holders.
- Ensure all remittances adhere to conditions in A.P. (DIR Series) Circular No.04 dated May 25, 2022.
Who it affects
AD Category-I banks, TRQ holders under India-UAE CEPA, Qualified Jewellers importing gold via IIBX, Trade finance departments handling bullion imports
Who is eligible for this advance remittance facility?
Valid Tariff Rate Quota (TRQ) holders under the India-UAE CEPA, as notified by IFSCA, are now eligible to remit advance payment for 11 days for gold imports through IIBX.
Does this circular change the 11-day advance payment period?
No, the 11-day advance payment period remains the same as specified in the earlier A.P. (DIR Series) Circular No.04 dated May 25, 2022.
What documentation must banks check before processing?
Banks must verify the TRQ holder's validity under DGFT Notification No.44/2023 and ensure the import is under the specified ITC(HS) codes through IIBX.