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CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)

Kaveri Bullion Dealers, a qualified jeweller, buys gold doré bars on IIBX and wants to bring them into the DTA. Which statement correctly describes the customs treatment?

Bullion moving from a GIFT IFSC vault to the DTA is treated as an import from foreign territory. The buyer must file a bill of entry and pay applicable customs duty at clearance. Buying on the exchange or holding the vault receipt for some time does not remove this liability.

  1. AThe import is treated as an import from a foreign territory into the DTA, with customs duty payable and a bill of entry filed at the time of clearance from the IFSCCorrect
  2. BNo customs duty applies because the gold was bought on a domestic exchange
  3. CCustoms duty is paid by the exchange on behalf of the buyer and need not be recovered
  4. DThe import is exempt from duty if the buyer holds a vault receipt for more than 30 days

Explanation

GIFT IFSC is treated as a foreign territory for customs purposes. Movement of bullion from the IFSC vault to the DTA is therefore an import, and customs duty and a bill of entry apply when it is cleared. A vault receipt holding period gives no exemption.

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