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The RBI has permitted the EOUs to import gold directly under different arrangements.

New Delhi , Feb. 23

THE Revenue Department has allowed the extension of warehousing period of all the capital goods in export-oriented units to five years.

According to the Export Promotion Council for EOUs and SEZ units here, the members of the council had been complaining that they have to seek extension in the bonding period of all the capital goods. This was supervening because if the capital goods are imported at different points of time, the bonding period in respect of such capital goods expired on different dates and they had to seek extension for bonding repeatedly. If the bonding request was not filed in time penalties were imposed.

It is in this context that the council took up the issue with the Revenue Department which in a recent circular allowed extension of warehousing of all the capital goods installed or put into use simultaneously at the time of renewal of warehousing licences irrespective of the fact that the capital goods are due for extension or not. Since private bonded warehouses licence is valid for five years, the unit shall now be required to apply for renewal every five years only.

In another development that would benefit EOUs and SEZ units, the RBI has permitted the units to import gold directly under different arrangements. It has been clarified that EOUs and units in SEZs which are in the gems and jewellery sector could import gold on loan basis for manufacturing and export of jewellery on their own account only. It is further clarified that maximum tenor of gold loan would be as per the Foreign Trade Policy 2004-09 or as notified by the Government from time to time in this regard, i.e., 240 days at present (60 days for manufacture and export plus 180 days for fixing the price and repayment). 100 per cent EOUs and units in SEZs in gems and jewellery sector could open standby letter of credit in favour of international bullion banks only, it was stated.

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