DGFT Approval for Import of Restricted Items in India like Gold Dore

Import of Restricted Items in India

In India, Import and export system is governed by the Foreign Trade (Development and Regulation) Act of 1992 and the Indian Export-Import (EXIM) Policy.

The import and export of all goods shall be free, except for items governed by the EXIM policy or any other legislation currently in force. Registration with regional licensing authority is a prerequisite for goods being imported and exported. Unless the importer has obtained from the regional authority an Import Export Code (IEC) the customs does not require clearance of products.

CLASSIFICATION OF GOODS

As per the import policy

 The Indian Trade classification (ITC)- harmonized system (HS) classifies goods into three category

a. Restricted

b. Canalized

c. Prohibited

Goods not listed in the categories mentioned above may be imported freely without any restriction if the importer has obtained a valid IEC. No need to get an import license or permission to import such products. Most of the goods may be imported freely into India.

1. Restricted (Licensed) Item

Restricted products can only be imported after the relevant regional licensing authority has issued an import license. The goods covered by the license shall be disposed of in the manner specified by the licensing authority, which the license itself should clearly indicate. ITC (HS) includes a list of restricted products. For capital goods, an import license is valid for 24 months, and for all other goods, 18 months.

For importing such products prior approval from DGFT is required under importing restricted products

2. Canalized Item

Canalized goods are products that can only be transported using different transport procedures or methods. You will find the list of canalized products in the ITC (HS). Goods in this category can only be imported through agencies which canalize them. Currently, the main canalized items are petroleum products, bulk agricultural products, such as grains and vegetable oils, and certain pharmaceuticals.

3. Prohibited Products

These are the goods listed in ITC (HS) that are strictly prohibited in India on all the import channels. These include wild animals, animal-derived tallow fat and oils, animal rennet, and unprocessed ivory.

What Is Gold Dore

Gold dore is a semi-pure alloy that is refined for additional purification. Refined gold bars are made from bars with gold doors

A doré bar is a gold bar that is partially refined. Doré bars are usually an alloy with a very high content of gold, sometimes even pure. They don't have uniformity or fixed norm, however. Gold doré bars result in the removal of all non-metal particles from the gold ore and consolidation of the naturally developed alloy gold-bearing into a single block. The gold doré bars are most often left in them, other than gold, mostly silver, plus often other gold mining by-products.

The main reason why doré bars are created is to facilitate handling by dealing with larger chunks of gold-bearing alloy instead of loose particles. In that sense, doré bars are basically the final stage between gold ore mining and gold bullion refining. The idea is that the doré bars are pure enough and big enough to handle the gold refineries.

Gold dore imported under Exim code 71081200 is “Restricted” as per ITC(HS), 2017. In this context, reference is invited to trade notice No.-14 dated 24/08/2017, wherein it has been notified that with effect from 1^st July 2018, the only applicant having valid license from BIS can make an application for import of gold dore. And before obtaining a BIS license the refinery has to be NABL accredited.

Procedure For Obtaining License For Importing Restricted Products

STEP 1 log in to application after OTP based authentication using email/mobile

STEP 2 Fill IEC detail, RCMC detail (if applicable) and other data fields along with the detail of import items; attached required documents and make payment online

STEP 3 Select the concerned jurisdictional RA from the dropdown and submit your application

Different Category Of Application And Their Required Mandatory Document

Pre-requisites for Gold Dore Import Licence

1. NABL certification for first-time importers: NABL has been approved by Indian Govt. as the sole accreditation body for laboratory testing and calibration. NABL's goal is to include qualitative and technical competence evaluation by third parties.

2. BIS certification for subsequent import: BIS is a national body that ensures the quality, safety, and reliability of Indian goods. BIS is intended to analyze product samples while they are in the preliminary and surveillance stages. 

3. Pollution Control NOC: The State Pollution Control Board/Committee grants a No Objection certificate to every business according to their category based on the level of pollutant an industry/establishment releases, these NOC (no objection certificate) comes in two steps namely CTE/CTO

4. Udyam Registration (Earlier known as Udyog Aadhar/MSME Registration): UDYAM REGISTRATION is a twelve digit Unique Identification Number provided by the Ministry of Micro, Small and Medium Enterprises, Government of India for small and medium enterprises, beginning in September 2015

5. RCMC Registration: A Registration Cum Membership Certificate (RCMC) is a certificate issued by the Federation of Indian Export Organizations (FIEO) and/or one of the various Export Promotion Councils (EPC) or Commodity Boards

6. Factory Licence: Every manufacturing Unit in India shall mandatorily obtain a factory Licence from the Local Urban Body. Factory Licence is also a prerequisite for Pollution Control Consent.

How can CorpZo help?

1. Corpzo is a leading advisory company with expertise in assisting businesses with their gold dore import requirements. Here are some ways Corpzo can help you:
2. Registration and Compliance Assistance: Corpzo can guide you through the entire process of obtaining necessary registrations such as IEC, BIS, and CBEC registration. Their team of experts ensures that you comply with all the regulatory requirements.
3. Sourcing and Due Diligence Support: Corpzo can help you identify and evaluate potential gold dore suppliers, ensuring that you establish relationships with reliable and trustworthy sources.
4. Risk Management: Corpzo can provide valuable insights into managing foreign exchange risks, securing logistics, and obtaining appropriate insurance coverage, mitigating potential challenges in the import process.
5. Market Intelligence: With their extensive knowledge and experience, Corpzo can offer valuable market intelligence to help you make informed decisions about gold dore import and navigate the fluctuating gold prices.
6. End-to-End Support: Corpzo provides end-to-end support, from obtaining necessary registrations to refining and selling the imported gold, ensuring a seamless and hassle-free process for your gold dore import business.

In conclusion, importing gold dore in India presents a lucrative opportunity for businesses looking to capitalize on the country's insatiable demand for gold. By understanding the process, benefits, requirements, and challenges involved, and partnering with an advisory company like Corpzo, you can successfully navigate the complexities of the gold dore import business and reap the rewards.

For more information on how Corpzo can assist you with your gold dore import venture, contact them at +91-9999139391 or [email protected].