Indian jewellers having a valid license to import a specified quantity of gold at concessional customs duty from the UAE, under the free trade agreement, can import it through bullion exchange IIBX, according to a government notification.
The Directorate General of Foreign Trade (DGFT) notification also said that those companies can obtain the physical delivery of the consignment through IFSCA (International Financial Services Centres Authority) registered vaults located in special economic zones, as per the authority's guidelines.
The India-UAE free trade agreement, which came into force in May 2022, provides one per cent duty concessions to domestic importers on a specified quantity of gold under TRQ (tariff rate quota) provisions of the pact.
The DGFT provides TRQ certificate to companies for imports and they are also notified by IFSCA.
"Valid India UAE TRQ holders as notified by IFSCA can import gold through IIBX against the TRQ and can obtain physical delivery of the same through IFSCA registered vaults located in SEZs as per the guidelines prescribed by the IFSCA," the DGFT said on Monday.
India International Bullion Exchange IFSC Ltd (IIBX) was launched in July 2022. IIBX is promoted by India's leading market infrastructure institutions like NSE, INDIA INX (a subsidiary of BSE), NSDL, CDSL and MCX.
IIBX is established at GIFT IFSC, Gandhinagar and regulated by the International Financial Services Centres Authority.
The exchange has been conceptualised to provide a gateway to import bullion into India and provide a world-class bullion exchange ecosystem to promote bullion trading, investment in bullion financial products and vaulting facilities in IFSCs.
Bullion is kept in the vaults authorised by IFSCA and empanelled by India International Depository IFSC Ltd. Bullion on IIBX is traded in the form of Bullion Depository Receipts.
The IFSCA was set up in April 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar.
The IFSCA is a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India.
At present, the GIFT IFSC is the maiden international financial services centre in India.
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