Export Against Supply By Foreign Buyer

4A.15

Before clearance of each consignment of import supplied by the foreign buyer, the nominated agency shall execute a bond with the Customs, undertaking to export within the period stipulated in the contract, gold/silver/platinum jewellery or articles equivalent to the entire import quantity of gold/silver/ platinum, mountings and findings etc excluding the admissible wastage.

In case of direct supply of gold/silver/platinum, alloys, findings and mountings of gold/silver/platinum and plain semi-finished gold/silver/platinum jewellery to status holder/ exporter, the Status Holder/exporter shall furnish a Bank Guarantee/LUT, as per Customs Rules and regulations to the Customs equivalent to the Customs Duty leviable on imported gold/ silver/ platinum, alloys, findings and mountings of gold/ silver/ platinum and plain semi-finished gold/ silver/ platinum jewellery etc.

The Bank Guarantee/LUT, as the case may be, executed with the Customs shall be valid for one year. In case of direct supply to the Status Holder/exporter, exports shall be completed within 90 days. In case of non-fulfillment of export obligation/ non-achievement of stipulated value addition, Customs Department shall proceed to recover custom duty alongwith interest which may include enforcement of Bank Guarantee/ LUT, as the case may be. Besides the importer will be liable to penal action under the Customs Act.