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Govt bans pure gold jewellery exports from India

Govt bans pure gold jewellery exports from India
In a major blow for domestic jewellery manufacturers, exports of gold ornaments, medallions, or any other articles of more than 22 carats (ameasure of purity) have been banned.
In a notification issued on Monday, the Directorate General of Foreign Trade (DGFT) said: “The Foreign Trade Policy 201520 are amended to allow export of gold jewellery (plain or studded) and articles containing gold of 8 carats and above up toamaximum limit of 22 carats only from domestic tariff area and export oriented units (EOU) or any such privileged facilities.” This means exports of jewellery or medallion, withagold content of more than 22 carats have been banned with immediate effect (24carat is pure gold).
A group of jewellers see it asamajor blow while for others it hasa “negligible” impact because the demand for pure gold jewellery is minuscule.
“We had written to the Ministry of Finance about eight months ago highlighting the round tripping of gold coins and medallions and their exports afteraminimal value addition.
There is hardly any room for value additions in 23and 24carat gold jewellery and medallions through import gold coins.
Hence, the government´s current decision would restrict round tripping of gold which many jewellers were engaged in,” said Surendra Mehta, National Secretary, India Bullion and Jewellers Association (IBJA), the premier industry body representing jewellers and bullion dealers.
According to an industry estimate, India exports around 170 tonnes of jewellery and medallions made of gold or studded with pure gold ornaments of 24 carats.
Rajesh Mehta, managing director of Rajesh Exports, one of India´s largest gold jewellery manufacturers and exporters, said, “There isaneed to ban imports of gold at zero duty from South Korea.
Instead of banning imports, the government banned exports of pure gold jewellery and medallion.
This will reduce foreign exchange earnings and employment generation at the jewellery fabrication level.” Indian bullion dealers have imported more than two tonnes of gold jewellery and medallion at zero duty from South Korea, according to trade sources.
The Business Standard, New Delhi, 16th August 2017


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