PROCEDURE FOR EXPORT OF GOLD JEWELRY AND PRECIOUS / SEMI-PRECIOUS STONES AND IMPORT FACILITY PROVIDED AGAINST EXPORT THEREOF.
S.R.O.131(KE)/96: In pursuance of entry B(1) of Schedule II of
Ministry of Commerce Notification No.S.R.O.714(I)/95, dated the 20th July,1995
(as amended from time to time), the following procedures for the export of gold
jewellery and precious /semi precious stones and for import of gold/rough and
uncut/cut precious/semi precious stones including pearls, diamonds and corals
against export performance of gold jewellery are hereby notify.
PART-I
Export of indigenous
precious/semi precious stones both in rough and finished forms and gold
jewellery from Pakistan to foreign countries shall be allowed only subject to
compliance with the procedure detailed in subsequent paragraphs.
1. GENERAL:
1. Export shall be allowed only by air(or parcel post) and
by sea (in the case of semi-precious stones in rough and uncut form) against
advance payment/irrevocable letters of credit 'Firm Order/Contract on DP/DA or
TR, Consignment Sale as well as on self-consignment basis through authorized
representative(s). Consignment on DA shall and also be allowed to be taken by the
exporter's authorized representative(s). When the goods have to be exported by
parcel post, sealed parcels/packets/boxes shall be arranged to be delivered to
the postal authorities under customs supervision. Prior approval of the Export
Promotion Bureau will be required for shipments taken out by the authorized
representative(s)
In case of exports on Firm
Contract on D.A. or T.R. basis, except where DA/Shipments taken/carried-out by
exporter's representative(s) himself, the Authorized Dealer, before certifying
the export forms, should ensure that the foreign buyer is of sound financial
standing and enjoys good repute and that necessary approval has been issued by
the Export Promotion Bureau for export on DA/TR basis. Doubtful cases should be
referred to the Export Promotion Bureau for instruction.
2. The sale proceeds of gold (24 kt) used in the
manufacture of gold jewellery exported under any scheme of this public Notice
shall be repatriated either in the form of gold (24 kt) or in Foreign Exchange
through normal banking channel equal to 100% weight of gold (24 kt) contents of
jewellery including wastage sold by the authorized exporters.
3. Export of gold jewellery embedded/studded with
precious/semi-precious stones(including pearls, diamonds and corals) made under
all the schemes of this Public Notice shall
the authorized exporters for the import of cut and polished
precious/semi precious stones(including pearl, diamonds and corals) upto 70% of
the net FOB value of cut and polished stones
used in the manufacture of
jewellery. And for the loose cut and polished stones i..e not studded/embedded
with gold jewellery exported separately, the import entitlement shall be rough
and uncut precious/semi precious stones (including pearls, diamonds and corals)
upto 70% of the net FOB value.
4. Gold, Rough and uncut/Cut precious/Semi precious stones
brought into Pakistan under all the schemes of import against export
performance and under entrustment scheme will be outside the normal import
tariffs/regulations.
5. The authorized exporter or his representative who will
be travelling for the export of gold jewellery precious/semi precious stones
and import of Gold under any scheme of this Notice will be provided preferred handling
by the customs for clearance of related goods.
6. Export of precious/semi precious stones and/or of gold
jewellery shall not be allowed except by a registered exporter who is also
registered with the Export Promotion Bureau as an exporter of these
items(here-in-after referred to as authorized exporter). Application Form for
registration is at Appendix I.
7. Registration as authorized exporter shall be granted by
Export promotion Bureau on the recommendation of All Pakistan Gem Merchants
& Jewellery Association; and All Pakistan Commercial Exporters Association
of Rough and Unpolished precious and Semi Precious Stones. Registration once
granted shall be liable to suspension of cancellation on grounds of malpractice
in export trade.
2. EXPORT PROCEDURE:
1. The procedure prescribed for export under the existing
Foreign Exchange Regulations shall have to be observed by the authorized
exporters. In other words, authorized exporters shall have to file Export
Declaration Form "E". These forms shall halve to be certified in the
usual manner by the authorized dealers.
2. The authorized exporters shall produce the parcel/boxes
containing gold jewellery/precious and semi precious stones alongwith
appropriate Form "B" and documents to the customs authorities for
weighment and examination under strict security and privacy. Besides verifying
the weight of gold jewellery against the exporters declaration, customs will
also be required to ensure that the prescribed minimum value addition has been
achieved and the that element of gold used in the jewellery and the articles
made thereof and the relevant wastage allowed taken together gives the value
addition not lower than what is prescribed in the rules.
3. All the precious/semi precious stones gold jewellery intended
to be exported shall be categorized separately, and the relevant documents
shall clearly indicate the type of gold jewellery whether plain or
studded/embedded, purity of jewellery (22 kt. or any lower karat), articles of
jewellery i.e necklace, rings, bangles, lockets etc. and total number and
weight of category. In case of gold jewellery studded/embedded, with stones,
the value of stones shall be shown separately in the documents, including
"E" Form. In case of precious/semi-precious stones, the documents
will clearly indicate the type and weight of stones in each lot.
4. Export of gold jewellery shall be allowed with minimum
value addition as given below and also in Part III of the ploicy, to evaluate
the consigment of gold jewellery:-
Value addition (a) 15% on plain jewellery
including gold
wastage (b) 25% on studded/embadded jewellery
5. The documetns will be negotiated by the authorized
dealer in the usual manner.
3. PROCEDURE FOR LOCAL SALE OF GOLD
JEWELLERY PRECIOUS
SEMI PRECIOUS STONES TO FOREIGN
BUYERS:
1. Arrangements shall be made by the exporters and customs
authorities to enable buyers to personally take away export parcels.
2. Foreign nationals and overseas Pakistanis can take out
personally gold jewellery/precious/semi precious stones upto the US$
10,000/-(US Dollars ten thousand only) on producting the foreign exchange
encashment certificate in any freely convertible currency, invoice and a letter
from association concerned,
3. In case the value of jewellery/precious/semi precious
stones exceeds the limit of US$ 10,000/- the normal prescribed export procedure
of these items shall be followed.
PART-II
PROCEDURE OF IMPORT
OF GOLD AND ROUGH PRECIOUS/SEMI PRECIOUS STONES AGAINST EXPORT OF GOLD
JEWELLERY AND PRECIOUS SEMI-PRECIOUS STONES.
Import of gold for re-export in
the form of gold jewellery shall be governed by the two schemes namely (1)
Entrustment Scheme (2) Import against Export Performance.
1. ENTRUSTMENT SCHEME:
1. The scheme provides for export of gold jewellery and
article against gold supplied free of charge, in advance, by the foreign buyer
concerned, to the extent of the quantity of gold used including wastage in the
manufacture of the items to be exported. Export order should, therefore, provide
for the supply of gold free of charge by the foreign buyer to the extent
required. Such gold should be received, in any case, before the export of
jewellery or article is allowed. Export orders should provide for payment of
manufacturing and other cost involved either by means of an irrevocable letter
of credit, or against payment in cash on delivery basis or against advance
payments in foreign exchange received through authorized dealer (Bank). The
documents should be negotiated through an authorized dealer in foreign exchange
only. The export order should relate to the single buyer overseas, although it
may cover several shipments.
2. The authorized exporter of gold jewellery in Pakistan
and the foreign buyer will enter into a written contract for the supply of gold
free of charge in advance for purpose of manufacture and export of gold
jewellery. The foreign buyer will supply gold in quantities of tolas, grams,
kg. or ounces in standard (bars/slabs'grains) form. (in 995.0/999.0 or
999.9/1000 finness).
3. The foreign buyer of gold jewellery will supply the gold
as stipulated in the contract through a designated person.
4. The authorized exporter in Pakistan will undertake to
supply gold jewellery of equal quantity of gold content to foreign buyers
within 90 days or as stipulated in the contract from the date of import of gold
into Pakistan.
5. Export Promotion Bureau will issue the import
Authorization for specified quantity of gold and monitor its export in the
shape of jewellery.
6. The foreign buyer/authorized exporter shall be allowed
to send/bring te gold into Pakistan personally or through air cargo/his
authorized representative(s) and shall also be allowed to take/carry/ship by
air cargo the gold jewellery against the import gold out of Pakistan under the
following procedure:-
(i) The foreign buyer/authorized export
in Pakistan shall inform as per Annexure-A-1 the customs authorities about the identity of the person bringing
the gold and the flight number by which he is scheduled to arrive, before
arrival of the flight. This information will be received
and acknowledged by the customs centralized office at the airport.
(ii) On
arrival at the airport the person bringing the gold will immediately declare
the quantity/weight to the customs at a counter specially made for this purpose
before the general baggage inspection.
(iii) The
consignment of gold shall be cleared immediately after the weighment and
examination under strict security and privacy after matching the details of
Import Authorization/Export approval as per Annexure "A" (issued by
EPB) and a bank Certificate as per Annexure "B" for the 5% cash
margin retained of the international value of gold and then it will be handed
over to the passenger by customs.
(iv) In
case the above mentioned documents not produced at the time of arrival or due
to certain unavoidable circumstances (late night arrival, holidays, strikes
etc.), the consignment of gold shall be deposited with the customs for safe
custody and subsequent release on production of above mentioned documents.
(v) The
shipping bill should, inter-alia, contain the exporters declaration about the
weight and the purity of gold used in each item to be exported, the FOB value
of the item to be exported, and the date of clearance of gold supplied, by the
foreign party (if the purity of gold used is the same in respect of all or some
of the items to be exported the exporter may give the total weight of gold and
the total value of such items are of the
same purity). In the case of studded/embedded items, the shipping bill should
show, in addition to gold content as above, the weight/value of precious semi
precious stones, pearls etc. used in their manufacture.
(vi) At
the time of export, the exporter shall present to the concerned customs
authority alongwith shipping bill Form 'E' and three copies of the connected
invoice duly marked "ENTRUSTMENT SCHEME". Before allowing the export,
the customs will do necessary checks to verify the weight and the minimum
prescribed value addition as detailed in part (III) of this policy.
7. The exporter shall within 30 days from the date of
exports, submit to the Bank an application to release the 5% cash margin and
attach thereto the invoices, shipping Bill duly authenticated by Customs and
bank certificate in original evidencing the negotiation of documents and flight
No. by which the consignment was exported for the gold released as per para 6
(iii) above.
8. The bank shall maintin
a complete account consignment-wise of gold imported for execution of
each export order, the exports effected and quantity of gold released against
such exports. At the end of each quarter, bank shall submit a report to Export
Promotion Bureau on the form prescribed in annexure C to this public notice.
2. IMPORT AGAINST EXPORT PERFORMANCE:
A. Export of Gold
Jewellery/Precious/Semi Precious Stone
Through Bank
1. In case of exports of gold jewellery made from locally
procured gold/precious/semi-precious stones on LC, Firm Contract/Order on DP or
DA, TR, Consignment Sale and or against advance payment by Air/Sea, the sale
proceeds will be realized within 120 days from the date of shipment and will be
repatriated either in the shape of gold equivalent to 100% weight of gold (24
kt) used in the gold jewellery and remaining invoice value in foreign exchange
or total value repatriated in foreign exchange.
2. Where Sale proceeds of gold contents are realized in
foreign exchange, the Authorized exporters shall be entitled to the
replenishment of gold at 100% of contents of jewellery exported by them plus
wastage or mnufacturing loss.
3. Import authorization for the replenishment can be
claimed from Export Promotion Bureau by the authorized exporters within 180
days from the date of realization of export proceeds. To this end, authorized
exporters will submit to the Export Promotion Bureau, an application as
prescribed in annexure "E" alongwith export proceeds Realization
Certificates issued by the Banks on form prescribed on Annexure "F"
for issue of entitlement/import authorization on Annexusre G for gold and
Annexure H for rough and uncut/cut precious semi-precious stones.
4. The import authorization issued by Export Promotion
Bureau shall be freely transferable.
5. The import entitlement/authorization issued by E.P.B.
for import of gold and rough and uncut/cut precious/semi-precious stones can
also be utilised by the authorized exporters for gems i.e. precious/semi
precious stones and jewellery manufacturing, cutting, polishing equipment and
machinery. On the basis of import authorization, authorized exporters will
contact the designated branch of the Nationalized/Privatised Pakistani Banks
for procurement of the quantity of gold specified in their import authorisation
but the quantity of gold to be imported shall not be less than 500 gram/50
tolas. The Bank will keep the exporters informed about the price of gold being
negotiated and settled. The bank will open LC/Registered Contract as per SBP
general regulations in force.
6. Import of rough and uncut precious/semi precious stones
and equipment/machinery against sch authorisation will be made either against
LC or Registered Contract as per SBP procedure.
7. The
bank charges will not exceed 1% of the value of shipment for all the services
rendered to authorized exporter.
B. Export
of Gold Jewellery, Precious/Semi Precious stones on Self-Consignment Basis or
Against Firm OrdeContract or Otherwise Throuhg Authorised Representative(s)
1. In case of export of gold jewellery made from locally
procured gold/precious/semi precious stones taken out by any authorized
representative(s) of the exporting firm/company on self consignment basis
either against Firm Order/Contract or otherwise, the procedure will be as
follows:-
(i) Export
Promotion Bureau will issue export Approval/Import authorization on the form
prescribed in annexure J/K to this public notice for the export of gold
jewellery/precious-semi precious stones on self consignment basis through
authorized representative(s) in duplicate the original will be retained by the
Bank certifying the "E" form and the duplicate will be authenticated
by the customs at the time of departure of the Exporters's representative. The
duplicate approval will be valid for 120 days from the date of departure for
bringing back gold/rough and uncut/cut precious-semi precious stones in lieu of
Export proceeds and any unsold gold jewellery/precious-semi precious stones. the
duplicate approval duly authenticated by the customs will be produced by the
Exporter's incoming representative to
the Customs on arrival for clearance release of the relative items.
(ii) The
sale proceeds of the gold(24 kt.) used in the manufactured items exported will
be reptariated in the form of gold (24 kt.) (in 995.0, 999.0, 999.9/1000
fineness) in the quantities equal to 100% weight of gold (24 kt.) contents of
jewellery sold plus wastage or in foreign exchange by the authorized exporter
within 120 days. This gold will be in standard form i.e. Slabs, Bars and
grains. The value addition i.e. cost of gems i.e. precious/semi precious
stones, labour charges and overheads
etc. will have to be repatriated to Pakistan through normal banking channel
within 120 days from the date of
shipment.
(iii) On
arrival in Pakistan the repatriated gold shall be cleared immediately at
Airport's Arrival Lonuge as per procedure detailed below. The unsold
jewellery/precious-semi precious stones will be deposited with the customs and
will be cleared through bill of entry.
(a) The Exporter will approach the
Customs for issuance of a certificate for the clearance of gold being
repatriated, and will furnish necessary details as per Annexure J-1 if
available in advance otherwise after the arrival of goods. The Customs will
issue the clearance certificate on the basis of Export Approval cum Import
Authorisation issued earlier by EPB at the time of export, certified copies of
export invoices and shipping bill. The customs certificate issued on form prescribed
in Annexure M to this notice will be in lieu of Bill of Entry
and will be the final document for the clearance of the gold.
(b) On
arrival at airport the authorised person brining back the gold/unsold
jewellery/precious/semi precious stones
shall immediately declare the quantity/weight to the customs at the counter
specially made for this purpose before the general baggage inspection.
(c) The
consignment of the gold shall be cleared immediately after the weighment and
examination understrict security and privacy after matching the details as per
certificate mentioned above. The duplicate export approval/import authorization
will be defaced by putting rubber stamp of the word "UTILISED".
(d) In case, the above mentioned
document(Customs Certificate) not produced at the time of arrival or due to
certain unavoidable circumstances (late night arrival, holidays strikes etc.)
the consignment of gold/unsold jewellery/precious/semi precious stones shall be
deposited with the customs for safe custody and subsequent release on
production of the certificate/bill of entry mentioned in sub para (a) above.
(iv) The authorised
exporter will be free to designate any of its representative(s) for carrying
the export shipment and for repatriation in the form of gold/unsold
jewellery/Precious & Semi Precious
stones, separately.
(v) The
sale proceeds of the consignment of cut and polished precious/semi-precious
stones carried out of self consignment basis through the authorized representative(s)
will be repatriated to Pakistan through normal banking channel within 120 days
from the dae of export and import entitlement/authorisation for rough and
uncut/cut precious and semi precious stones may be obtain against the documents
mentioned before. The exporters can, however, import bring precious/semi
precious uncut/cut and rough stones upto 70% of the FOB value and repatriate
the balance invoice value through normal banking channel within the prescribed
period mentioned above.
2. Necessary Customs Certificate on Bill of Entry for gold
rough and uncut/cut stones imported in lieu of foreign exchange and/or for
unsold jewellery/precious/semi precious stones shall be produced to the bank,
through which consignment was exported, within a period of 120 days from the
date of shipment.
PART - III
MISCELLANEOUS:
(1) Value Addition Requirement:
(i) Export of gold jewellery shall be
allowed with minimum value addition of 15% (including wastage as shown in the
table) in case of plain
gold jewellery and a minimum of 25% in case of gold jewellery Studded/Embedded
with precious/semi-precious stones. For valuation purposes of gold content the
international price (London Closing) of the first prior working day shall be
taken into account.
(ii) The percentage of value addition
shall include cost of gems i.e. precious/semi precious stones, labour charges,
overhead cost and profit.
(2) Import against Export performance:
(i) The import authorization issued by
EPB against export performance shall be exempt from the payment of any fee.
(ii) The import of equipment and
machinery/gold/rough, and uncut/cut precious and semi-precious stones including
pearls, diamonds and corals against export performance shall be allowed free of
import duty, sales tax any surcharge and advance income tax/withholding tax.
(3) Gold Wastage:
Gold wastage or manufacturing
loss in the export of gold jewellery shall be allowed to the authorized
exporters under all the schemes as per the table given below :-
TABLE
Description of
Jewellery percentage of wastage.
(1) Plain gold jewellery unstudded/un-Embedded. 2% of gold content in jewellery by
weight
(2) Sudded/Embedded gold jewellery. 10% of gold content in jewellery by weight.
Hall Marking.
All Pakistan Gem Merchants and
Jewellers Association shall ensure that the hallmarking becomes as standard
procedure for the export of Gold jewellery at the earliest.
A conversion table indicating 24
kt. gold into various karats prepared for the bank and customs is placed at
Appendix.II
(
M. ADIL SIDDIQUI )
C.No.EPB-2(6)/95-COM.I) Director
GOVERNMENT OF
PAKISTAN
EXPORT PROMOTION
BUREAU
APPLICATION FORM
FOR REGISTRATION OF EXPORT OF
GOLD JEWELLERY
AND/OR
PRECIOUS/SEMI-PRECIOUS STONES
Tick mark ( ) the Documents Enclosed To
be filled in by E.P.B.
(i)
Registration Certificate No
(ii)
Date of issue
(iii)
Issued by
Signature
Seal
of the Officer
1. (a) Name of the applicant firm
_________________________________________________________________________
(in block letters)
(b) Postal
address____________________________________________________________________________________
(give details P.O Box will not
be be
adequate______________________________________________________________________________________________
(c) Telegraphic
address_______________________________________________________________________________
(d)
Telephone
No___________________________________________________________________________________
(e Telex
No_______________________________________________________________________________________
2. (a) Name
and address of branch office, if
any__________________________________________________________
(b) Name and address of present office, if any__________________________________________________________
3. Status of the firm.
Proprietary Partnership
Concern Limited Concern
(Please tick the appropriate box).
4. (a) Name
with the name of father and address of :-
Proprietor/Partners
Directors____________________________________________________________________
5. Export registration certificate No.
issued
by the licensing
authority__________________________________________________________________________
(b)
Date of issue.
Note :- Please
attach a photo copy
of export registration certificate alongwith
Photostat copy of proof of payment
of renewal fee.
6. Income-tax and General Index
Register Number._____________________________________________________
Name and address of the bankers.
(please attach a bank report on
___________________________________________________________________
the financial status of the firm
in a sealed cover addressed to
the
Export Promotion Bureau).
7. Date/Year of establishment of the
firm _____________________________________________________________
8. Total amount of investment in the
business _________________________________________________________
9. Indicate amounts of income-tax,
super-tax__________________________________________________________
etc paid during the past three
years.
(please attach Photostat copies of the
_____________________________________________________________
proof of
payment______________________________________________________________________________
10. Please give details of export
performance________________________________________________________
during the past three years.
(attach statement of export as certified by your bankers).
11. (a) Experience in jewellery trade
_______________________________________________________________
(b) Value of gold
jewellelry/indigenous gems
and__________________________________________________
stones that can be exported by you in any financial
year.___________________________________________
.13. If registered with CCI & E as
importer, state the registration No. and date of issue.________________________
14. Name, if any, of the recognized
Chamber of ______________________________________________________
Commerce/Trade Association with
whom affiliated_________________________________________________
DECLARATION
(i) I
also hereby declare that I clearly understand
that if any statement made in this application proves to be
incorrect, the registration certificate issued in my/our favour on the
basis of application shall be treated
as void abinitio. (In case, the
firm is a partnership/limited
concern, the application form should be
signed by all the partners/directors an authority signed by all the partners/directors in favour of
the signatory must be attached).
Signature
Designation
Full
Address
Appendix-II
CONVERSION TABLE
PREPARED BY ALL PAKISTAN
GEMS AND
JEWELLERS ASSOCIATION
24 KT Gold 1000
Parts Pure Gold.
23 KT Gold 958.41
Hall-mark will be 23 KT or 958.
22 KT Gold 916.74
22 KT or 916
21 KT Gold 875.07
21 KT or 875
20 KT Gold 833.40
20 KT or 833
19 KT Gold 791.73
19 KT or 791
18 KT Gold 750.06
18 KT or 750
17 KT Gold 708.39
17 KT or 708
16 KT Gold 666.72
16 KT or 666
15 KT Gold 625.05
15 KT or 625
14 KT Gold 583.38
14 KT or 583
13 KT Gold 541.71
13 KT or 541
12 KT Gold 500.04
12 KT or 500
11 KT Gold 458.37
11 KT or 458
10 KT Gold 416.70
10 KT or 416
09 KT Gold 375.03
09 KT or 375