Gold jewellery and gold articles above 22 carat banned from being exported
The Dollar Business Bureau
The DGFT has issued a notification 21/2015-2020 dated August 14, 2017, amending para 4.32 (i) of FTP 2015-20: “Gold jewellery, including partly processed jewellery and articles including medallions and coins (excluding legal tender coins), whether plain or studded, containing gold of 8 carats and above up to a maximum limit of 22 carats.”
The notification also declares that, “export of gold jewellery, including partly processed jewellery, whether plain or studded, and articles, containing gold of 8 carats and above upto a maximum limit of 22 carats ONLY shall be permitted from domestic tariff area and EOU/EHTP/STP/BTP Units.”
In other words, gold jewellery, gold medallions and other precious items made of gold, above 22 carat purity are not permitted by any exporter including EOUs/EHTPs/STPs/BTP units or export parks from being exported. These are meant only for sector-specific shipments. The DGFT allows exporters to avail incentives by shipping gold items and jewellery weighing 22 carat and not beyond that.
This comes at a time when the DGFT received reports that some exporters were availing export incentives by making minor value additions to 22 carat gold items.
It should be recalled that India and South Korea had recently come to an understanding wherein Indian traders can import nearly 25 tonnes of gold from South Korea. Thanks to the FTA signed between the two countries, it allows importers to not pay 10% customs duty for gold imports. Also with the Countervailing duty of 12.5% being subsumed in GST, imports of gold attract only 3% IGST.
Gold imports from South Korea touched $338.6 billion between July and August months.
India’s imports of gold for 2016-17 stood at 470.46 million.