4.34

Advance Procurement/ Replenishment of Precious Metals from Nominated Agencies

(i) Exporter of gold / silver / platinum jewellery and articles thereof including mountings and findings may obtain gold / silver / platinum as an input for export product from Nominated Agency, in advance or as replenishment after export in accordance with the procedure specified in this behalf.

Replenishment of gold / silver / platinum will be subject to Customs notification No. 57/2000-Customs dated 08.05.2000, as amended.

(Above para 4.34 (i) has been amended vide NOTIFICATION NO. 16/2019, DT. 02/09/2019)

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(i) Exporter of gold / silver / platinum jewellery and articles thereof including mountings and findings may obtain gold / silver / platinum as an input for export product from Nominated Agency, in advance or as replenishment after export in accordance with the procedure specified in this behalf.

No replenishment of the precious metal shall be available to the exporter/manufacturer where the exporter/manufacturer avails any of the benefits in respect of exported product.

a. CENVAT Credit is availed on inputs or services by the manufacturer.

b. Finished goods stage rebate is availed under Notification No 19/2004-CE (NT) dated 06.09.2004.

c. Input stage rebate is availed in respect of duty of excise paid on the precious metal bar or articles of precious metal under Notification No 21/2004-CE(NT) dated 06.09.2004.

d. Precious metal or articles of precious metal are procured by the manufacturer under rule 19(2) of the Central Excise Rules, 2002.

e. Input Tax Credit is availed on inputs or services or both by the exporter under Chapter V of CGST Act; or refund of ITC or refund of IGST is availed under section 54 of the CGST Act. ]

(ii) The export would be subject to wastage norms and minimum value addition as prescribed in paragraph 4.60 and 4.61 respectively in the Handbook of Procedures.