Gold Import Scheme - Modification proposed - Customs - F.No. 495/5/92-Cus.VI

Gold Import Scheme - Modification proposed F.No. 495/5/92-Cus.VI Dated 1-9-1994 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Gold Import Scheme - Modification proposed The Government have been considering for some time modification in the Gold Import Scheme so as to obviate physical carriage of gold by the NRIs. This was on account of various representations received by the Government pointing out the most of the international flights land in India during mid-night and early morning and physical carriage of gold by the passengers is, therefore, not free from risk. After considering all aspects of the matter, the Government have accepted a Scheme under which gold will be imported by the State Bank of India/MMTC on consignment basis and kept in their private customs bonded warehouse outside the customs area at the international airports or one of their designated branch office in the city. To begin with, the Scheme will be started in three cities viz. Bombay, Delhi and Trivandrum. The passenger intending to purchase the gold from SBI/MMTC shall file a gold declaration with the Proper Officer of Customs at the time of his arrival in India. Such declaration shall be given the status of bill of entry by making appropriate regulations under Section 157 of the Customs Act. His eligibility to import gold under the Scheme shall be examined by the Proper Officer at the time of arrival and, if found eligible, the duty on the gold shall be assessed by the Proper Officer and the passenger shall pay the duty at the SBI counter in the arrival hall. Two copies of the gold declaration/bill of entry shall be handed over to the passenger which will be endorsed by the SBI and the passenger shall be free to take delivery of gold covered by such declaration/bill of entry from SBI/MMTC counter at the international airport or from the designated branch office in the city. The Scheme will come into force from a date to be notified. 2. For the above purpose, the SBI/MMTC shall be required to keep the gold imported on consignment basis in their private bonded warehouse. It is, therefore, likely that the SBI/MMTC will approach you for the grant of a private bonded warehouse licence, under Section 58 of the Customs Act, 1962. As and when such a request is made, the same may be considered favourably. It may, however, be ensured that this warehouse at the international airport is outside the customs area so that the eligible passenger can buy gold/take delivery from such warehouse only after his eligibility has been checked by the customs and the customs duty has been paid by him at the time of arrival itself. Moreover, when the SBI/MMTC set up the gold delivery points, it should be properly designed to ensure security and safety. 3. Other modalities for the working of the Scheme are being worked out and shall be communicated to you in due course.