THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975
SECTION-XIV
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METALS, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN
CHAPTER 71
Notes :
1. Subject to Note 1 (a) to Section VI and except as provided below, all articles consisting wholly or partly:
(a) of natural or cultured pearls or of precious of semi-precious stones (natural, synthetic or reconstructed); or
(b) of precious metal or of metal clad with precious metal, are to be classified in this Chapter.
2. (A) Headings 7113, 7114 and 7112.5 do not cover articles in which precious metal or metal clad with precious metal is present as minor constituents only, such as minor fittings or minor ornamentation (for example, monograms, ferrules and rims) and paragraph (b) of the foregoing Note does not apply to such articles.
(B) Heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).
3. This Chapter does not cover:
(a) amalgams of precious metal, or colloidal precious metal (heading 2843);
(b) sterile surgical suture materials, dental fillings or other goods of Chapter 30;
(c) goods of Chapter 32 (for example, lusters);
(d) supported catalysts (heading 3812.5);
(e) articles of heading 4202 or 4203 referred to in Note 2 (B) to Chapter 42;
(f) articles of heading 4303 or 4304;
(g) goods of Section XI (textiles and textile articles);
(h) footwear, headgear or other articles of Chapter 64 or 65;
(ij) umbrellas, walking-sticks or other articles of Chapter 66;
(k) abrasive goods of heading 6804 or 6805 or Chapter 82, containing dust or powder of precious or semi-precious stones (natural or synthetic); articles of Chapter 82 with a working part of precious or semi-precious stones (natural, synthetic or reconstructed); machinery, mechanical appliances or electrical goods, or parts thereof, of Section XVI. However, articles and parts thereof, wholly of precious or semi-precious stones (natural, synthetic or reconstructed) remain classified in this Chapter, except unmounted worked sapphires and diamonds for styli (heading 8522);
(l) articles of Chapter 90, 91 or 92 (scientific instruments, clocks and watches, musical instruments);
(m) arms or parts thereof (Chapter 93);
(n) articles covered by Note 2 to Chapter 95;
(o) articles classified in Chapter 96 by virtue of Note 4 to that Chapter; or
(p) original sculptures or statutory (heading 9703), collectors' pieces (heading 9705) or antiques of an age exceeding one hundred years (heading 9706), other than natural or cultured pearls or precious or semi-precious stones.
4. (A) The expression "precious metal" means silver, gold and platinum.
(B) The expression "platinum" means platinum, iridium, osmium, palladium, rhodium and ruthenium.
(C) The expression "precious or semi-precious stones" does not include any of the substances specified in Note 2 (b) to Chapter 96.
5. For the purposes of this Chapter, any alloy (including a sintered mixture and an inter-metallic compound) containing precious metal is to be treated as an alloy of precious metal if any one precious metal constitutes as much as 2% by weight, of the alloy. Alloys of precious metal are to be classified according to the following rules:
(a) an alloy containing 2% or more, by weight, of platinum is to be treated as an alloy of platinum;
(b) an alloy containing 2% or more, by weight, of gold but not platinum, or less than 2% by weight, of platinum, is to be treated as an alloy of gold;
(c) other alloys containing 2% or more, by weight, of silver are to be treated as alloys of silver.
6. Except where the context otherwise requires, any reference in this Schedule to precious metal or to any particular precious metal includes a reference to alloys treated as alloys of precious metal or of the particular metal in accordance with the rules in Note 5 above, but not to metal clad with precious metal or to base metal or non-metals plated with precious metal.
7. Throughout this Schedule, the expression ''metal clad with precious metal" means material made with a base of metal upon one or more surfaces of which there is affixed by soldering, brazing, welding, hot-rolling or similar mechanical means a covering of precious metal. Except where the context otherwise requires, the expression also covers base metal inlaid with precious metal.
8. Subject to Note 1 (a) to Section VI, goods answering to a description in heading 7112 are to be classified in that heading and in no other heading of this Schedule.
9. For the purposes of heading 7113, the expression "articles of jewellery" means:
(a) any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, ear-rings, watch-chains, fobs, pendants, tie-pins, cuff-links, dress-studs, religious or other medals and insignia); and
(b) articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (for example,cigar or cigarette cases, snuff boxes, cachou or pill boxes, powder boxes, chain purses or prayer beads).
These articles may be combined or set, for example, with natural or cultured pearls, precious or semi-precious stones, synthetic or reconstructed precious or semi-precious stones, tortoise shell, mother-of-pearl, ivory, natural or reconstituted amber, jet or coral.
10. For the purposes of heading 7114, the expression "articles of goldsmiths' or silversmiths' wares" includes such articles as ornaments, table-ware, toilet-ware, smokers' requisites and other articles of household, office or religious use.
11. For the purposes of heading 7117, the expression "imitation jewellery" means articles of jewellery within the meaning of paragraph (a) of Note 9 above (but not including buttons or other articles of heading 9606, or dress-combs, hair-slides or the like, or hairpins, of heading 9612.5), not incorporating natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal.
Sub-heading Notes :
1. For the purposes of sub-headings 7106 10, 7108 11, 7110 11, 7110 21, 7110 31 and 7110 41, the expressions "powder" and "in powder form" mean products of which 90% or more by weight passes through a sieve having a mesh aperture of 0.5 mm.
2. Notwithstanding the provisions of Chapter Note 4(B), for the purposes of sub-headings 7110 11 and 7110 19, the expression "platinum" does not include iridium, osmium, palladium, rhodium or rutheniu
3. For the classification of alloys in the sub-headings of heading 7110, each alloy is to be classified with that metal, platinum, palladium, rhodium, iridium, osmium or ruthenium which predominates by weight over each other of these metals.
Supplementary Note:
For the purposes of heading 7104, "Diamonds" means-
(a) chemically produced stones which have essentially the same chemical composition and crystal structure as a particular natural diamond and are produced using various methods including High Pressure High Temperature method (HPHT) and Chemical Vapour Deposition method (CVD); or
(b) stones obtained artificially by various means, e.g., agglomerating, pressing or fusing together (usually with the aid of a blow pipe) fragments of natural diamonds which have generally been reduced to a powder.
EXEMPTION NOTIFICATIONS
Exemption to precious stones imported by post on 'approval or return' basis.
[Notfn. No. 248/76-Cus., dt. 2.8.1976]
Precious stones, falling within Chapter 71 imported by post on "approval or return" basis are exempt from the whole of the duty of customs, subject to the conditions that -
(i) the importer shall apply in writing for a grant of exemption under this notification and the application shall be accompanied by all documents in his possession supporting his claim that the precious stones are being imported on 'approval or return' basis;
(ii) the importer shall appear before the Postmaster in the post office in which the consignment is kept on the day specified therefor by the proper officer of Customs and shall give a receipt that he has received the consignment as a whole, that is to say, the entire lot of precious stones sent by the exporter;
(iii) the consignment referred to in condition (ii) shall then be given to the importer for inspection in the immediate presence of the proper officer of Customs and the postal authority concerned in the post office itself and after the sorting of the precious stones into approved and unapproved lots, the unapproved lots shall be packed, for being exported to the consignor, in the immediate presence of the said officer and the authority under their supervision and the lot shall not be removed from the custody of the Postal Department;
(iv) the importer shall forthwith pay:
(a) the duty of customs leviable on the precious stones sorted as approved by him and take delivery thereof; and
(b) the fees, if any for services referred to in condition (iii).
Exemption to platinum falling under Heading 71.10 imported by specified agency for supply under export promotion & Replenishment Scheme:
[Notfn. No. 146/93-Cus., dt. 28.6.1993 as amended by Notfn. Nos. 57/97, 26/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts platinum falling under heading 71.10 ofthe First Schedule to the Customs Tariff Act, 1975 (51 of 1975) when imported into India by the Minerals and Metals Trading Corporation of India Limited, the Handicraft and Handloom Export Corporation, the State Trading Corporation, the State Bank of India and any agency authorised by Reserve Bank of India, for supply under the, "Gold/Silver and Platinum Jewellery and articles Export Promotion and Replenishment Scheme" Export and Import Policy, 1 April, 1997 - 31 March, 2002, read with Chapter VIII, of the Handbook of Procedures, Volume I, 1 April, 1997 - 31 March, 2002 published by the Government of India under Ministry of Commerce, Notfn. No. 1/97-2002, dt. 31.3.1997 as amended from time to time from the whole of duty of customs leviable thereon, which is specified in the said First Schedule, and from the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act.
Exemption to Gold bars
[Notfn. No. 97/99-Cus., dt. 21.7.1999 as amended by Notifn. No. 26/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts standard gold bars falling under Chapter 71 ofthe First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, by a bank authorised by the Reserve Bank of India (hereinafter referred to as the participating bank) from the whole of the duty of customs leviable thereon which is specified in the said First Schedule, and from the whole of the additional duty and special additional duty leviable thereon, respectively, under sub-sections (1), (3) and (5) of section 3 and section 3A of the said Customs Tariff Act, subject to the following conditions, namely: -
(i) that at the time of import, a certficate from an officer of the participating bank not below the rank of General Manager or equivalent thereof is produced to the effect that the said gold bars (in respect of description, quantity and technical specification) are imported under the Gold Deposit Scheme in exchange of scrap gold to be exported out of India; and
(ii) that an undertaking is furnished by the participating bank to the Assistant Commissioner of Customs or Deputy Commissioner of Customs to the effect that -
(a) the said gold bars shall be used in connection with the Gold Deposit Scheme, referred to in condition (i), in the manner authorized by the Reserve Bank of India; and
(b) the participating bank shall pay, on demand, in the event of its failure to comply with clause
(a), an amount equal to the difference between the duty leviable on such quantity of the said gold bars but for the exemption contained herein and that already paid at the time of importation.
(iii) that the Gold Deposit Scheme under which the exchange mentioned in condition (i) takes place shall have to be approved by the Reserve Bank of India.
Exemption to Gold/Silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery falling within Chapter 71.
[Notfn. No. 56/00-Cus., dt. 5.5.2000 as amended by Notfn. Nos. 56/01, 64/02, 87/04, 84/07, 106/09, 33/15, 26/17, 90/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, (52 of 1962), and in supersession of the notification of the Government of India in the Minisry of Finance (Department of Revenue), No. 144/93-Customs, dated 28th June, 1993 [G.S.R. 480(E) dated the 28th June, 1993] in so for as it relates to import of silver or gold under the Scheme for export of Gold/Silver jewellery and articles against Gold and Silver supplied by the foreign buyer except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts gold/silver/platinum, alloys, findings and mountings of gold/silver/plantinum and plain semi-finished gold/silver/platinum jewellery (hereinafter referred to as 'the said goods') falling within Chapter 71 ofthe First Schedule to the Customs TariffAct, 1975 (51 of 1975), when imported into India by nominated agencies, status holders or exporters of three years' standing having an annual average turnover of five crore rupees during the preceding three licensing years under the scheme for 'Exoprt Against Supply by Foreign buyer' as referred to in paragraph 4.45 of the Foreign Trade Policy, from the whole of the duty of customs leviable thereon, which is specified in the said First Schedule, and from the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act;
Provided that in the case of import by the nominated agencies, the importer or his authorised representative executes a bond in such form or for such sum as may be spcified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs, undertaking himself to export gold/silver/platinum jewellery or articles, as the case may be, including studded articles having gold/silver/platinum content equivalent to the imported gold/silver/platinum within the period stipulatd in the relevant contract between the importer and the foreign supplier of the said goods, as the case may be, or such extended period as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on sufficient cause being shown, allow, and binding himself to pay on demand duty on quantity of gold/silver/platinum representing the difference between the quantity imported and that contained in the exported jewellery or articles;
Provided further that in the case of import by status holders or exporters of three years' standing having an annual average turnover of five crore rupees during the preceding three licensing years, the importer executes a bond in such form and for such sum as may be specifid by the Assistant Commissioner of Customs or Deputy Commissioner of Customs, and furnishes a bank gurantee for a sum equivalent to one and half times of the Customs duty leviable on the said goods imported, undertaking himself to export gold/ silver/platinum jewellery or articles, as the case may be, including studded articles having gold/silver/platinum content equivalent to the imported gold/silver/platinum within 90 days from the date of import and to fulfil the conditions of Foreign Trade Policy and the Handbook of Procedures, Volume-I and to achieve the Export Obligation and Value Addition as stipulated in the Foreign Trade Policy and Handbook of Procedures, Volume-1 and binding himself to pay on demand duty on the said goods along with interest at the rate of 20% per annum on the said duty from the date of duty free importation till the date of payment of duty in case of nonfulfilment of Value Addition or Export Obligation as stipulated in the Foreign Trade Policy or Handbook of Procedurs, Volume-I or in case of failure to complete the export within said period of 90 days.
Explanation: for the purpose of this notification-
(a) 'Foreign Trade Policy' means Foreign Trade Policy, 2015-2020 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii) vide notification No. 01/2015-2020, dated the 1 st April, 2015.
(b) 'Handbook of Procedures' means Handbook of Procedures notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, PartI, Section 1 vide Public Notice No. 01/2015-2020, dated the 1st April, 2015.
(c) "Nominated Agencies" means the Metals& Minerals Trading Corporation Limited (MMTC), the Handicraft and Handloom Export Corporation (HHEC), the State Trading Corporation (STC), the Project and Equipment Corporation of India Ltd. (PEC) and any agency authorised by the Reserve Bank of India (RBI);
(d) "Status holder' means importer recognised as One Star Export House, Two Star Export House, Three Star Export House, Four Star Export House, or as the case may be, Five Star Export House, in terms of the Foreign Trade Policy.
Exemption to silver, gold and platinum, falling under heading Nos. 71.06, 71.08 and 71.10 respectively:
[Notfn. No. 57/00-Cus., dt. 8.5.2000 as amended by Notfn. Nos. 64/02, 87/04, 84/07, 106/09, 33/15, 56/16, 26/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 144/93-Cus, dated the 28th June, 1993 [G.S.R. 480(E) datd the 28th June, 1993] except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts silver, gold and platinum, falling under heading Nos. 71.06, 71.08 and 71.10 respectively ofthe First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India,
(a) as replenishment under the Scheme for 'Export through Exhibition/Export Promotion Tours/Export of Branded Jewellery' as referred to in Paragraph 4.46 of the Foreign Trade Policy, read with relevant provisions of chapter 4 of the Hnadbook of Procedures, Volume 1, or
(b) under the Scheme for 'Export Against Supply by Nominated Agencies' as referred to in Paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of the Handbook of Procedures, Volume-I, from the whole of the duty of customs leviable thereon, which is specified in the said First Schdule, and from the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act.
Provided that in the case of import of gold/silver/platinum as replenishment under the scheme for Export through 'Exhibitions/Export Promotion Tours/Export of Branded Jewellery', the importer undertakes to fulfil the conditions of Foreign Trade Policy and relevant provisions of the Handbook of Procedures, Volume-I and produces such documents as stipulated in the Foreign Trade Policy and the Handbook of Procedures, Volume-1 and produces such proof of exports made through exhibitions/export promotion tours etc, as may be required by the Assistant Commissioner of Customs or the Deputy Commissioner of Customs to satisfy himself with regard to eligibility of the importer for the duty free import of replenishment material:
Provided further that in the case of import of gold / silver / platinum under the scheme for 'Export Against Supply by Nominated Agencies', the importer executes a bond in such form and for such sum as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs, undertaking to export, either by itself or through other exporters, gold / silver / platinum jewellery or articles, as the case may be, including studded articles having gold / silver / platinum content equivalent to the imported gold / silver / platinum within a period of ninety days from the date of issue of gold / silver / platinum to the exporters, and binding himself to pay on demand duty on quantity of gold / silver / platinum representing the difference between the quantity issued and that contained in the exported jewellery or articles.
la) 'Foreign Trade Policy' means Foreign Trade Policy, 2015-2020 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Subsection (ii) vide notification No. 01/2015-2020, dated the 1st April, 2015.
(b) 'Handbook of Procedures' means Handbook of Procedures notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-I, Section 1 vide Public Notice No. 01/2015-2020, dated the 1st April, 2015.
(c) 'Nominated agencies' means,-
(1) Metals and Minerals Trading Corporation Limited (MMTC);
(2) Handicraft and Handloom Export Corporation (HHEC);
(3) State Trading Corporation (STC);
(4) Project and Equipment Corporation of India Ltd. (PEC);
(5) STCL Ltd;
(6) MSTC Ltd;
(7) Diamond India Limited (DIL);
(8) Four Star Export House from Gems & Jewellery sector and Five Star Export House from any sector as may be recognised as nominated agencies by Regional Authority in terms of the Foreign Trade Policy;
(9) any bank as authorised by Reserve Bank of India as Nominated Agency.
Exemption to gold and silver falling and produced out of copper anode slime, when imported into India. :
[Notfn. No. 25/01-Cus., dt. 1.3.2001]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), read with sub-section (6) of section 3 and sub-section (1) of section 3A of the Customs Tariff Act, 1975 (51 of 1975), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 139/99-Customs, dated the 30th December, 1999, published in the Gazette of India vide number G.S.R. 836(E), dated the 30th December, 1999, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts gold and silver falling under Chapter 71 of the First Schedule to the said Customs Tariff Act, and produced out of copper anode slime, the said copper anode slime having been exported out of India for toll smelting or toll processing, when imported into India,-
(a) from so much of duty of customs leviable thereon which is specified in the said First Schedule,
(b) from so much of additional duty leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act, and
(c) from so much of special additional duty leviable thereon under sub-section (1) of section 3A of the said Customs Tariff Act,
as is in excess of the duties which would be leviable if the value of the said goods were equal to the aggregate of -(1) the toll smelting or toll processing costs, as the case may be, that is to say, -
(i) labour charges,
(ii) cost of material (other than the cost of the goods exported out of India) used in such toll smelting or toll processing, and
(iii) any other charges which are payable in connection with the toll smelting or toll processing abroad;and
(2) the insurance and freight charges both ways,
subject to the following conditions, namely :-
(I) the gold or silver, as the case may be, is imported within one year of the date of export of copper anode slime out of India; and
(II) sufficient evidence is shown that the gold or silver, as the case may be, which is imported has in fact been obtained out of toll smelting or toll processing of the copper anode slime exported out of India.
Exemption to platinum, silver and gold imported under the scheme for export of gold jewellary and articles.
[Notfn. No. 86 /01-Cus., dt. 7.8.2001 as amended by 26/17.]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 49/97-Customs, dated 23-5-97 [GSR 272(E), dated 23-5-97], except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts -
(i) gold of fineness not less than 0.995,
(ii) platinum of fineness not less than 0.900,
(iii) silver of fineness not less than 0.999,
(iv) gold findings, gold mountings or gold solders upto 0.920 fineness, upto 10% of the value of the licence within the overall value of the licence,
(v) platinum findings, platinum mountings or platinum solders upto 0.920 fineness, upto 10% of the value of the licence within the overall value of the licence,
(vi) silver findings, silver mountings or silver solders upto 0.925 fineness upto 10% of the value of the licence within the overall value of the licence,
falling within Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India under a Replenishment Licence issued against export of plain or studded gold jewellery or articles thereof, platinum jewellery or articles thereof or silver jewellery or articles thereof, in terms of paragraph 8.37 of the Export and Import Policy read with paragraphs 8.82 and 8.84 of the Handbook of Procedures, from the whole of the duty of customs leviable thereon, which is specified in the said First Schedule and from the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act.
Explanation.- For the purpose of this notification.-
(a) "Export and Import Policy" means the Export and Import Policy, 1997-2002, notified by Government of India in the Ministry of Commerce and Industry vide notification No.1 (RE-00)/1997-2002, dated the 31st March, 2001, as amended from time to time;
(b) "Handbook of Procedures" means the Handbook of Procedures, Vol-I, published vide Public Notice of the Government of India in the Ministry of Commerce and Industry, No.1(RE-2001)/1997-2002, dated the 31st March, 2001, as amended from time to time.
Exemption to raw pearls, natural or cultured, rough diamonds and other precious or semiprecious stones:
[Notfn. No. 60/02-Cus., dt. 7.6.2002 as amended by 87/04, 106/09, 33/15, 26/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.35/2001-Cus, dated 30-3-2001 [G.S.R. 231(E), dated the 30th March, 2001], the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts raw pearls, natural or cultured, and precious or semi-precious stones( other than rough diamonds), unset and uncut, falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from the whole of the duty of Customs leviable thereon under the said First Schedule and the additional duty, if any, leviable thereon under sub-sections (1), (3) and (5) of section 3 of the said Customs Tariff Act, subject to the condition that imports are made under a,-
(i) Replenishment Licence issued under, and in accordance with, paragraph 4.4.1 of the Foreign Trade Policy; or
(ii) Replenishment Authorisation for Gems issued under, and in accordance with, paragraph 4.35 of the Foreign Trade Policy; or
Explanation.- For the purpose of this notification, 'Foreign Trade Policy' means Foreign Trade Policy, 2015 -2020 notified by the Government of India in the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii) vide notification No. 01/2015-2020, dated the 1 st April, 2015.
Effective rate of duty on gold and silver imported other than through post, courier or baggage:
[Notfn. No. 2/12-Cus., dt. 16.1.2012]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.62/2004-Customs, dated the 12th May, 2004, published in the Gazette of India, Extraordinary vide, G.S.R. No.311(E), dated the 12th May, 2004, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description specified in column (2) of the Table hereto annexed and falling within Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, other than through post, courier or baggage, from so much of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table and from the whole of the additional duty of customs leviable thereon under section 3 of the said Customs Tariff Act.
Table
(2) For the purposes of this notification,-
(i) "Gold in any form" shall include medallions and coinshaving gold content not below 99.5% but shall not include foreign currency coins and jewellery made of gold ;
(ii) "Silver in any form" shall include medallions and coinshaving silver content not below 99.9% but shall not include foreign currency coins and jewellery made of silver.
(3) This notification shall come into force on the 17thday of January, 2012.
Exemption on cut and polished diamonds falling within chapter 71:
[Notfn. No. 9/12-Cus., dt. 9.3.2012 as amended by 11/13, 16/14, 7/17, 60/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts cut and polished diamonds falling within chapter 71 of the First schedule to the Customs Tariff Act, 1975 (51 of 1975), when re-imported into India after certification/grading by the laboratories / agencies as notified in the Foreign Trade Policy in this regard, from the whole of the duty of customs leviable thereon which is specified in the First Schedule and from the whole of integrated tax leviable under sub-section (7) of section 3 of the Customs Tariff Act,1975 , subject to fulfillment of the following conditions namely:-
I) Cut and polished diamonds are re-imported by gems and jewellery exporters having a track record of at least three years and having an annual average turnover of five crore rupees and above during the preceding three licensing years;
Ii) Each piece of cut & polished diamonds so re-imported shall not be less than 0.25 of a carat in weight;
Iii) Cut and polished diamonds shall be re-imported within a period of three months from the date of exportation;
Iv) Cut and polished diamonds shall be allowed to be re-imported only on production of certification/ grading report from the said laboratories or agencies; and
V) Cut and polished diamonds so re-imported shall match with corresponding diamonds mentioned in the invoice at the time of exportation in terms of value, height, circumference and weight.
Provided that a variance not exceeding +_ 0.05 mm in diameter for round shape diamonds and +_ 0.07 mm in length and breadth for diamonds of other shapes and variance not exceeding +_ 1 cent in weight shall be allowed.
2. Notwithstanding anything contained herein above, the exemption contained in this notification shall also be applicable, if the exportation and re-importation of cut and polished diamonds as stated above are undertaken by the authorised offices or agencies in India of the laboratories mentioned under paragraph 4.74 of Handbook of Procedures 2015-2020 on behalf of the exporters subject to the fulfillment of conditions (ii),(iii),(iv) and(v) specified herein above and in the Foreign Trade Policy and Handbook of Procedures.
Explanation. - For the purposes of this notification, "Foreign Trade Policy" means the Foreign Trade Policy, 2015-2020, published by the Government of India in the Ministry of Commerce and Industry, vide notification No. 01/2015-2020, dated the 1st April, 2015, as amended from time to time.
Effective rate of duty on gold and silver :
[Notfn. No. 44/13-Cus., dt. 17.9.2013]
WHEREAS the Central Government is satisfied that the import duty leviable on articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal and articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal, falling under headings 7113 and 7114 respectively of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), should be increased and that circumstances exist which render it necessary to take immediate action;
NOW, therefore, in exercise of the powers conferred by sub-section (1) of section 8A of the said Customs Tariff Act, the Central Government, hereby directs that the First Schedule to the said Customs Tariff Act shall be amended in the following manner, namely:-
In the First Schedule to the said Customs Tariff Act, in Section XIV, in Chapter 71, against tariff items 7113 11 10, 7113 11 20, 7113 11 30, 7113 11 90, 7113 19 10, 7113 19 20, 7113 19 30, 7113 19 40, 7113 19 50, 7113 19 60, 7113 19 90, 7113 20 00, 7114 11 10, 7114 11 20, 7114 19 10, 7114 19 20, 7114 19 30, 7114 20 10, 7114 20 20 and 7114 20 30, for the entry in column (4), the entry "15%" shall be substituted.
2. This notification shall come into force on the 17th day of September, 2013.
Exemption to cut and polished diamonds falling under Chapter 71:
[Notfn. No. 40/15-Cus., dt. 21.7.2015 as amended by 61/17]
In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts cut and polished diamonds falling under Chapter 71 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported (for grading or certification and re-export out of India) by the laboratories and agencies (hereinafter referred to as the said laboratories and agencies) notified in the Foreign Trade Policy and mentioned in the Table below, from the whole of the duty of customs leviable thereon which is specified in the First Schedule and from the whole of integrated tax leviable under sub-section (7) of section 3 of the Customs Tariff Act,1975, subject to fulfillment of the following conditions, namely:-
(i) the said laboratories and agencies shall furnish a general bond to the satisfaction of the Assistant Commissioner/Deputy Commissioner of Customs at the port of import, undertaking to properly account for the diamonds, to follow the procedure specified in paragraph 4.75 of the Handbook of Procedures and to re-export diamonds within the period as mentioned in the said paragraph of Handbook of Procedures;
(ii) the import shall be allowed under bill of entry having the detailed description of the diamonds, including inter alia, the dimensions, weight, colour, caratage, specification, approximate value, etc. of each piece of diamonds;
(iii) the bill of entry should carry the endorsement "only for certification and grading";
(iv) the said laboratories and agencies while taking the diamonds in their unit, shall allot a 'unique control number' for identification purposes and maintain a separate account for such diamonds;
(v) after grading or certification, the diamonds shall be re-exported under a shipping bill containing the detailed description as was mentioned at the time of their import;
(vi) cross reference of bill of entry shall be endorsed in the shipping bill;
(vii) the said laboratories and agencies shall submit alongwith the shipping bill, a certificate to the effect that the diamonds being re-exported are the same as those imported;
(viii) the said laboratories and agencies shall obtain Guaranteed Remittance (GR) waiver in respect of import and re-export as per the procedure laid down by the Reserve Bank of India (RBI) and realise the foreign exchange for the service charges in terms of the Reserve Bank of India (RBI) guidelines;
(ix) the Custom Officers may visit the premises of the said laboratories and agencies for audit or checks;
(x) the diamonds imported for certification or grading shall be re-exported within a period of three months from the date of their import;
(xi) the said laboratories and agencies shall submit a quarterly statement by 25th of the month following the particular quarter and the statement shall reflect the bill of entry number, date, details of dia monds and details of re-export, etc.; and
(xii) re-export shall be allowed only from the port through which import took place.
Explanation. - For the purposes of this notification, -
(a) "Foreign Trade Policy" means the Foreign Trade Policy, 2015 - 2020 notified by the Government of India in the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification No. 01/2015-2020, dated the 1st April, 2015;
(b) "Handbook of Procedures" means the Handbook of Procedures notified by the Government of India in the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-I, Section 1 vide Public Notice No. 01/2015-2020, dated the 1st April, 2015.
[Notfn. No. 21/17-Cus., dt. 22.5.2017]
Whereas the notification no. 09/2012-Cus dated the 9th March, 2012 of the Government of India, Ministry of Finance, Department of Revenue did not allow benefit of duty free import of cut and polished diamonds exported abroad for certification and grading, by authorised offices/agencies in India of laboratories mentioned under para 4.74 of the Hand Book of Procedure;
And whereas, for the period from the 9th March, 2012 to 1st March,2017, i.e. the date on which notification No. 7/2017-Cus, dated the 1st March, 2017 was issued allowing such authorised offices/ agencies in India of laboratories mentioned under para 4.74 of the Hand Book of Procedure to re-import duty free cut and polished diamonds exported abroad for certification and grading, a practice was generally prevalent in the field to not to levy duty on re-import of such cut and polished diamonds exported abroad for certification and grading, by the authorised offices/agencies in India of these laboratories mentioned in Foreign Trade Policy;
And whereas, the said general practice of allowing duty free import of cut and polished diamonds exported for certification and grading was prevalent during the period from the 9th March, 2012 to 1st March, 2017 due to the fact that such duty free import of cut and polished diamonds exported for certification and grading was used to be allowed to these authorized agencies/offices in India of these laboratories under Foreign Trade Policy 2004-2009, appropriately enabled by notification No. 55/2001-Cus, dated the 16th May, 2001;
And whereas, the import duty on cut and polished diamonds was abolished during 2007 to be again reintroduced during January, 2012 and, therefore, Foreign Trade Policy 2009-2014 was amended to extend the benefit of duty free import of cut and polished diamonds to a class of exporters post certification from abroad. However, Foreign Trade Policy missed out to extend this benefit of duty free import to authorised agencies/offices in India of laboratories mentioned under para 4.74 of the Hand Book of Procedure and accordingly, the enabling notification no.9/2012-Cus, dated the 9th March, 2012 also did not extend this benefit to these authorised agencies/offices in India of laboratories mentioned in Foreign Trade Policy.
Now, therefore, in exercise of the powers conferred by section 28A of the Customs Act, 1962 (52 of 1962), the Central Government, hereby, directs that the whole of duty of Customs and additional duty of Customs, if any, payable on the import of such cut and polished diamonds during the period from the 9th March, 2012 to 1st March, 2017 by the authorized agencies/ offices in India of laboratories mentioned under para 4.74 of the Hand Book of Procedure, but for the said practice, shall not be required to be paid in respect of import of such cut and polished diamonds.