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

Suvarna Jewels Pvt Ltd, a jeweller in Surat, wants to buy gold through the India International Bullion Exchange in GIFT IFSC. The gold will be physically moved from the vault in GIFT IFSC to its factory in the Domestic Tariff Area. Under the IIBX framework, what is the customs position on this movement?

Moving bullion from an IIBX vault in GIFT IFSC into the Domestic Tariff Area is treated as an import into India. The IFSC is outside the customs territory for goods, so the buyer must pay customs duty on clearance into the DTA.

  1. AIt is treated as an import into India, with customs duty payable on clearance into the DTACorrect
  2. BIt is treated as a domestic transfer with no customs duty
  3. CIt is treated as an export from GIFT IFSC, with duty payable by the seller
  4. DIt is permitted only after the exchange pays duty on behalf of the buyer

Explanation

GIFT IFSC is treated as a territory outside the customs territory of India for trade in goods. Moving bullion bought on IIBX to the DTA is therefore an import, and the buyer pays customs duty at clearance. The option calling it a domestic transfer ignores the special status of the IFSC.

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