According to industry sources, some exporters were availing of export incentives by claiming export of gold items of above 22 carat purity.
New Delhi: The Centre has banned the export of gold products with a purity above 22-carat in a bid to check round tripping of the precious metal. According to industry sources, some exporters were availing of export incentives by claiming export of gold items of above 22 carat purity with some value addition. The ban affects jewellery, including partly processed jewellery, coins and medals.
The Directorate General of Foreign Trade (DGFT) in a a notification has said certain provisions of the foreign trade policy (2015-20) are “amended to allow export of gold jewellery (plain or studded) and articles containing gold of 8 carats and above up to a maximum limit of 22 carats only from domestic tariff area and export-oriented units, electronics hardware technology parks, software technology parks and bio-tech parks.”
Export of gold jewellery, medallions and other articles of the precious metal above 22-carat purity is not permitted by any exporter, including from these parks, which are meant for sector-specific shipments. The DGFT said that only those exporters can avail of incentives who are shipping gold jewellery and other articles containing gold of 8 carats and up to a maximum limit of 22 carats and not beyond.
The decision came at a time when Indian gold jewellery traders have raised concerns over a surge in gold imports from South Korea. Gold import from South Korea jumped to $338.6 million during July 1 and August 3 this year.