Commerce Ministry pitches for easing gold import norms

Commerce Ministry pitches for easing gold import norms
The Commerce Ministry has pitched for easing of gold import norms to increase the availability of the metal in the domestic market and boost exports, reported PTI.

Commerce Secretary Rajeev Kher said the ministry has spoken to the Finance Ministry on the matter and it is "under their consideration".

"There is a need of rationalisation in gold import duty and gold import procedure. We have already made it clear that there is a need to look at the current gold import regime," he told media.

In order to check rising current account deficit (CAD), the government had raised import duties and the RBI imposed curbs on import of gold and also laid down various pre-conditions for inward shipments of the precious metal.

Kher also said that there is a need to simply the 80:20 rule of the government and make it easier for exporters to source gold for exports.

The government under the 80:20 scheme on August 14, 2013, allowed nominated agencies to import gold on the condition that 20 per cent of the inward shipment will be exported. The permission to import the next lot depends on on fulfillment of export obligation.

Last month, the RBI had earlier eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.

Gold imports declined 72 per cent to USD 2.19 billion in May due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the CAD.

Dion Global Solutions

Read more about: cad, gold import, government
Story first published: Thursday, June 12, 2014, 12:30 [IST]
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