Docstoc

Presentation Dubai Gold Commodities Exchange

Document Sample
Presentation Dubai Gold Commodities Exchange Powered By Docstoc
					Transfer of Title
 To make Exchange Delivery, sellers
  must deliver-in compliant steel and
  secure appropriate DCR(s) for that
  volume to be delivered across the
  Exchange
 Transfer of title is effected basis
  endorsement of DCR(s) (or part thereof)
  to buyer(s) in accordance with DCR
  rules
 Under DGCX delivery, this endorsement
  occurs on day of delivery, once buyers
  funds received by DGCX (DCCC)
Customs Procedure
Imported by Vessel
Category A: BL Consignee is
   A Regular UAE registered company (not free-zone; no
   duty exemption licence)

Option 1
1. BL – D/O / CoO / PL / Inv  “Import For Re-Export Bill
   of Entry”.
        5% duty must be deposited
2.   Prepares a “Land Transport Export Bill of Entry”.
3.   Chosen DPO immediately applies for a “FreeZone Bill of
     Entry” to become custodian of the rebar covered under
     the Land Transport Export Bill.
        By direct delivery or indirect delivery, the rebar physically
         exits the free zone and then re-enters via a In-Out pass
        The 5% duty deposit originally placed is reclaimed
         (reimbursement in about 2 weeks)
Customs Procedure
Imported by Vessel
Category A, Option 1 (continued)
 DPO receives rebar into his facility and DCR(s) issued
    per owner‟s instructions.
       DPO is custodian on behalf of BL Consignee
       Should DCR trade, title transferred along with DCR
           DCR(s) can be split / traded to other buyer(s)
   The ultimate buyer who wants to physically import
    into UAE
       Cancels DCR(s) endorsed to him
       Files an ex-FreeZone Bill of Entry with value declared
        either higher or equal to the value declared at the time
        of first import
       If imported by a non-duty exempt importer, that
        importer liable to pay duty of 5% of the declared value
        (or higher) at first import (ie per the ex-FreeZone Bill of
        Entry), regardless of the price at which he bought title to
        the goods via the private market or via the Exchange
       If that ultimate buyer (importer) has duty exemption,
        obviously no duty would be applicable
Customs Procedure
Imported by Vessel
Category A, Option 2

   All shipping documents are issued as:
       Shipped to: the Delivery Point Operator (DPO)
       Sold to: Owner of the goods
   As the „Shipped to‟ company, the DPO is able to clear
    full cargo on behalf of the „Sold to‟ owner, under the
    DPOs „Free Zone Bill of Entry
   DPO can arrange direct delivery for full order quantity.
   Subsequently, any portion (0-100%) can be released
    to the „Sold To‟ owner as per that owners instructions
       For any cargo to be released and imported into Dubai,
        DPO must file an ex-FreeZone Bill of Entry with value
        declared either higher or equal to the value declared at
        the time of first import
Customs Procedure
Imported by Vessel
Category A, Option 2 (continued….)

Immediate Delivery / Direct Delivery
 If the „Sold to‟ owner wants to import any
  portion (0-100%) on an immediate, direct
  delivery basis, this can be effected without
  that portion (0-100%) physically being
  moved to the DPOs premises. However
     In the case of a duty exempted client, that duty
      exemption will require processing of a chamber of
      commerce certificate of origin by the DPO as well
      as legalization. The administrative time might be a
      deterrent to Direct Delivery.
     In such cases, the „Sold To‟ owner might have to
      consider moving the cargo into DPO‟s premises
      (alternatively put in the General Cargo area on a
      „Received to Port Facility‟ basis), process the
      required documentation and then move the stock
      out of Free Zone.
Customs Procedure
Imported by Vessel
Category A, Option 2 (continued….)

Clearance under Bank Guarantee
 DPO‟s are not authorized to issue bank guarantees for
    any cargo. If the goods are to be cleared against „Sold
    To‟ owners bank guarantee, then „Shipped To‟ DPO can
    merely facilitate same with customs.

Duty
 All balance cargo (0-100%) held by the DPO awaiting
   the „Sold to‟ owners instructions. If on-sold to a third
   party or allocated to one via Exchange Trading, then
   that ultimate importer is liable to pay duty according
   to (i) their specific duty status and (ii) the value
   declared (or higher) at the time first import value (see
   Category A, Option 1)
Customs Procedure
Imported by Vessel
Category B: BL Consignee is
    UAE-registered company that holds a duty exemption

Option 1
   Flows as per Category A, Option 1
   Customs clears that portion of BL he wants to deliver across
    the exchange under his regular trade licence (not under his
    duty exemption licence), or originally imports the shipment
    under different House Bills of Lading

Option 2
   As per Category A, Option 2 with (0-100%) of documents
    covering cargo identifying „Shipped To‟ DPO and „Sold To‟
    the owner
       If imported by a Duty Exemption holder (either the original „Sold
        To‟ owner or a 3rd party) no duty is applicable
       If imported by a non-duty exempt importer, that importer liable
        to pay duty of 5% of the declared value (or higher) at first
        import
Customs Procedure
Imported by Vessel
Category B: Option 3

 Clears all cargo under his duty-exempt status
  and physically removes rebar from JAFZA
 Re-delivers into JAFZA some of that duty-
  exempt tonnage under an In-Out Pass
     Forgoes duty-expemt advantage on that tonnage
 Should UAE customs seek to impose duty on
  such cargo re-imported into Dubai, ultimate
  importer(s) allocated such lots via Exchange
  Trading are liable to pay duty according to (i)
  their specific duty status and (ii) the value
  declared (or higher) at the time first import
  value (see Category A, Option 1)
Customs Procedure
Imported by Vessel
Category C: BL Consignee is itself a JAFZA entity

   Customs-clears goods against standard JAFZA Bill of
    Entry (in which he is consignee).
   Delivers rebar either to his own facility or the facility of
    the DPO.
       In the latter case he should (but it is not mandatory)
        apply for an “Internal Transfer”, changing the FZ Title of
        that Bill of Entry to the DPO, who officially becomes
        custodian of the steel and, thereby, for which he can
        issue (issuer certifeid) DCR(s)
       In the former case (owner retains rebar at his own
        facility), that owner can apply for issuance of a CMI-DCR.
        This option is more expensive than the DPOs (issuer
        certifeid) DCR(s), but is equally tradable in the DCR
        system and/or via the Exchange
   Ultimate importer liable for duty according to (i) their
    specific duty status and (ii) the value declared at the
    time first import value (see Category A, Option 1)
Customs Procedure
Imported by Vessel
Category D: BL Consignee is
   A non UAE company

Proceeds essentially as per
 Category A, Option 2, or
 Category B, Option 2

Namely:
 Shipping documents covering cargo are marked
   „Shipped To‟ nominated DPO and „Sold To‟ the owner.
   Goods can be commercially or Exchange traded to any
   third party per DCR rules. At the point of ultimate
   import into the UAE
   If imported by a Duty Exemption holder no duty is
      applicable
   If imported by a non-duty exempt importer, that
      importer liable to pay duty of 5% of the declared
      value (or higher) at first import
Customs Procedure
 Imported by Road

Product will either be:
 Produced in GCC, in which case no duty
   applicable (basis CoO)
       Product can enter JAFZA on an In-Out pass, or Bill
        of Entry which declares duty is not-applicable basis
        GCC origin
   Produced outside GCC, in which case duty will
    have been dealt with at original point of entry
    (JAFZA / Other).
       Product can enter JAFZA basis an In-Out pass, but
        perhaps better if entry recorded by in a formal Bill
        of Entry which declares duty is has been paid
Customs Procedure
 DCR Swapping?
Evidently there may be DCRs covering rebar where the ultimate
importer
    Is liable to pay duty (Category A, Category B options 1&2)
    Is not liable to pay duty (Category B, option 3 (possibly))
    May not wish to take that specific rebar (Eg, may prefer
     different diameters or origin)

Experience of other Exchanges suggest this will be one factor to
support…..
    The more frequent use of EFPs & ADPs
    The emergence an off-exchange „DCR-swapping‟ market,
     where Buyers allocated DCRs for rebar of an origin they
     don‟t like, or they may have to pay duty on, will use their
     broker to locate „more preferred‟ DCRs (eg basis origin,
     diameters or duty status) to „swap‟. Its likely at least one
     side of this „DCR swap‟ will end up paying (their broker) a
     premium for this service.
        Disclaimer


The information in this presentation is confidential and is intended for use
only by authorised recipients. It should not be reproduced or disclosed to
any other person without the prior written consent of Dubai Gold &
Commodities Centre (DGCX)

Authorised recipients of this presentation acknowledge that the material
in this presentation is copyrighted and may only use this material in
presentations and literature under the following conditions i) Any slide(s)
used must be reproduced without modification ii) DGCX must be
acknowledged as source of any material used in the body of any
document containing material from these presentations.

DGCX makes no representation or warranty (express or implied) of any
nature, nor does it accept any responsibility or liability of any kind, with
respect to the accuracy or completeness of the information in this
presentation
Thank You

  Q&A
For further information

   www.dmcc.ae
john.short@dmcc.ae
  +971 4 390 3899

  www.dgcx.ae
  info@dgcx.ae
 +971 4 361 1616

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:10
posted:9/28/2011
language:English
pages:16