IFSCA Guidelines for Qualified Jewellers: Importing Gold & Silver Via IIBX
- Introduction
- Who Are Qualified Jewellers (QJ)?
- Difference Between Qualified Jewellers And TRQ Jewellers
- Understanding IFSCA Guidelines For Qualified Jewellers: Tariffs, Quotas, And Remittance
- DGFT Guidelines for TRQ Jewellers
- Onboarding Process of Qualified Jewellers Via IIBX
- Documents Required for Qualified Jewellers
- Regulatory Framework & Compliance For Qualified Jewellers
- Conclusion
Introduction
With India’s rising demand for precious metals, the scope of the gold and silver market has also surged. Even the India International Bullion Exchange (IIBX) within the GIFT City was popularizing among investors. Thus, the need to streamline and formalize the import of precious metals became more crucial for IFSCA. Hence, the International Financial Services Centres Authority (IFSCA) issued specific guidelines for Qualified Jewellers and related participants. As per the IFSCA data release, in FY 2024-25, there were 171 qualified jewellers (QJ), 25 qualified suppliers (QS), and 441 TRQ-qualified jewellers. (Check the latest figures from the iibx website)
This blog will help us understand the IFSCA guidelines for qualified jewellers, Tariff Rate Quotas, the onboarding process, how QJ differs from TRQ jewellers, and more.
Who Are Qualified Jewellers (QJ)?
Qualified Jeweller, as per the IFSCA definition, is a company that meets certain criteria to participate as a jeweller on the bullion exchange (IIBX) for importing gold and silver. They can be either a Bullion Trading Member (BTM), a client, or a Limited Purpose Trading Member (LPTM) for import purposes. Plus, any entity acting as an LPTM (or “Special Category Client”) must register as a Body corporate or limited liability partnership (LLP), as per the Companies Act, 2013.
Key criteria for Qualified Jewellers include:
- The entity or company must have a net worth of ₹25 crores (in the precious metal business) as stated in the latest audited financial statement.
- 90% of the annual average turnover must be from precious metals in the last three financial years.
- The entity must have filed its due GST returns before filing the application form.
Difference Between Qualified Jewellers And TRQ Jewellers
While the IIBX allows qualified and TRQ jewellers to import gold and silver, the criteria differ. The following table explains the difference between qualified jewellers and TRQ jewellers.
Qualified Jewellers |
TRQ Jewellers |
|
|---|---|---|
Purpose |
To import gold/silver via the IIBX platform under the IFSCA guidelines |
To import UAE-origin gold at concessional duty under CEPA quotas (as defined in the CEPA agreement) |
Eligibility Criteria |
It includes: |
It includes: |
Regulatory Body |
IFSCA (International Financial Services Centres Authority) |
DGFT (Directorate General of Foreign Trade) under India-UAE CEPA |
Applicable Bullion |
Gold - (HS Code 71081200, 71189000) |
Only UAE-GD marked gold is eligible for the CEPA benefit. |
Role on IIBX |
They can participate as a Client (BDM) or a Special Category Client to facilitate imports. |
Here, TRQ jewellers can buy gold/silver as per their quota. It cannot exceed. |
Understanding IFSCA Guidelines For Qualified Jewellers: Tariffs, Quotas, And Remittance
To import gold or silver, qualified jewellers must follow the IFSCA guidelines outlined for this purpose. It includes;
- Only BDR (Bullion Depository Receipts) can be utilized for gold imports. Once purchased, BDR cannot be canceled, revoked, or replaced with a sell order.
- Before placing any order, it is mandatory to remit/send an advance payment for 11 days specific to gold imports. It applies to silver imports as well.
- Qualified Jewellers must remit foreign currency via an AD (Authorized Dealer) bank to purchase BDR.
- Likewise, any unutilized amount must be remitted to the same AD bank within 11 days.
- Any remitted advance for the import of gold should be used to buy gold worth the remittance made. For example, if ₹50 lakhs are transferred for gold imports, QJs cannot purchase gold more than ₹50 lakhs by any means.
- All payments must happen through the exchange mechanism as approved by IFSCA.
Eventually, the IIBX must report to IFSCA about the monthly import transactions. These details include a description of products traded, quantity, value, quantity of gold imported, etc.
DGFT Guidelines for TRQ Jewellers
While the qualified jewellers fall under the regulatory wall of IFSCA, the Directorate General of Foreign Trade (DGFT) regulates the TRQ (Tariff Rate Quota) Jewellers. These entities are a part of the CEPA (Comprehensive Economic Partnership Agreement) signed between India and the United Arab Emirates (UAE) in 2022.
Every year, in February, DGFT releases application forms for the TRQ quota. Based on the allocated quota, a TRQ jeweller can import gold. Last year (2024-25), the quota was 160 tonnes. For the next FY 2025-26, the TRQ Gold Quota is 180 tonnes.
For TRQ Jewellers to import gold/silver, they must;
- Obtain a TRQ license authorized by DGFT. It is only then possible for them to access gold via the quota provided to them.
- The license is only valid for one financial year. Hence, entities must reapply for the TRQ license next year as well.
- TRQ jewellers attract an import duty of 5% on the gold and silver imports.
Onboarding Process of Qualified Jewellers Via IIBX
The following are the steps for applying for a qualified and TRQ jeweller on the IIBX exchange.
Quota Approval
The first step is registering the entity on the IIBX exchange with a valid email ID, number, and other details. After successful login, complete the KYC registration process and apply under the India-UAE TRQ Quota Holder category.
Within this process, upload the requested documents and submit the application form. Once submitted, you can track the application under “My Application” on the dashboard.
Note: If net worth is less than ₹25 crores (required QJ criteria), entities can apply for the TRQ Quota and import gold, silver, or any precious metals. Only allocated quota holders can then apply for approval from the IIBX exchange.
Exchange Approval
As the quota gets approved, the next step is to connect with an IIBX-registered broker and facilitate the exchange approval. The minimum quantity allocated by DGFT is 80kg in the last financial year (subject to change). Once you upload the documents on the IIBX portal and receive approval from the exchange, the entity can work as a “Qualified Jeweller.”
Trading
The qualified jewellers can now open a Demat account with the India International Depository Limited (IIDL) via a broker and facilitate gold/silver imports. Here, the jeweller can purchase a minimum quantity of 100 gms (out of the allocated TR quota) to any amount from the IIBX exchange.
Once the order gets executed (via the dealing desk), submit a BDR withdrawal request via IIDI (India International Depository IFSC Limited), which acts as a uniform depository for IFSC in GIFT City. Later, file a Bill of Entry via CHA (Customs House Agents) and pay the required duties.
With this step, connect with the vault manager and get bullion (gold/silver) delivered to your location. During this process, any unutilized amount will be remitted back to the client within 11 days.
Documents Required for Qualified Jewellers
Different sets of criteria are required at two levels - TRQ quota approval and Exchange approval. It differs for Qualified Jewelers as well as those applying for TRQ Quota.
Exchange approval
- Governing documents (like AOA, MOA, Partnership, or LLP deed, if applicable)
- Board or Partner Authority (like partners' shareholding details, board/partner resolution, etc).
- KYC (Entity & individuals)
- Financial statements & Tax returns (audited financials and ITR acknowledgment of last 2 years)
- Bank Details (Cancelled Cheque and Latest Bank Statement)
- Proof of Address
- Proof of Identity
- Regulatory registrations (like GSTN, TRN certificate, TRQ Quota holder certificate - if applied via quota, etc).
- Declarations (UBO declaration, fit and proper undertaking, etc.)
- Demat account proof
TRQ Quota Request
When applying on the DGFT portal, certain details are required from the applicant’s side. It includes;
- Select the Application Type
- Application For
- Apply For
- Trade Type, and more
- Proceed to “Applicant Details” and fill in your data.
- The next step is “Import Details,” which includes;
- ITC (HS) Code and Description
- CIF Value (INR and USD)
- UOM (Unit of Measure) and more
- Upload documents (it is not mandatory). However, an applicant can upload any attachment that seems necessary.
- Confirm the details, Sign, and apply.
Regulatory Framework & Compliance For Qualified Jewellers
While the qualified jewellers must register with the IIBX Exchange, the hierarchy remains with the IFSCA. This means that IIBX remains a bullion exchange platform, and the IFSCA acts as a regulatory body. Moreover, the QJ has to follow specific rules when engaging with IIBX. It includes;
- Used initially, BDR should be for bullion import, either as a Client of BTM (Bullion Trading member) or a Special Client category.
- Qualified jewellers acting as clients may approach BTM to open a client account for bullion import.
- Likewise, a QJ qualifying for the Special Client category may associate with a clearing member for payment transactions.
- After initial verification, IIBX will forward the same to IFSCA. Only when IFSCA is satisfied, it shall notify the entity as a Qualified Jeweller.
Conclusion
With India aiming to become a global bullion trading hub with GIFT City, the International Financial Services Centres Authority issues guidelines for Qualified Jewellers to enable transparent, regulated, and efficient gold and silver imports. Through exchange platforms like IIBX, jewellers can access global bullion markets directly and eliminate unnecessary complexity. Whether you’re a jeweller aiming to expand your sourcing capabilities or an industry observer tracking India’s bullion market evolution, understanding these rules is essential.
