Wily bullion traders unsettle Indo-Asian FTA by importing gold articles. Most Leading bullion refiners and importers have alerted tax authorities about imports gold articles such as spoons items, bowls, glasses from South Korea and Indonesia, which is unsettling the import business.
Unscrupulous importers are importing these articles of 99 % purity at 0.96 % duty from South Korea, and to a lesser extent Indonesia, under the Indo-Asean Free Trade Agreement, melting them into bullion and selling them at the prevailing market rate, which includes 10 per cent customs duty. They make a neat 9% gain in the bargain.
This has prompted MMTC Pamp, one of the country’s major largest gold refiners, and Bullion Federation of India, comprising of leading bullion dealers, among others to alert the Central Board of Excise and Customs to “inadvertent outcomes of Agreements” being heavily misused and causing good revenue loss to the federal government. ET has reviewed the letter dated August 22 to chair person , CBEC.
A sizeable portion of such gold items is through Delhi Air Cargo. Rajesh Khosla, MD, MMTC-Pamp, cleared an estimated 1 tonne every 10 days was mainly being imported into India from the two countries. South Korea is a signatory to the FTA and a major gold producer.
India on average imports gold of 800 tonnes each year.
The traders moved to importing articles of gold from gold jewellery after the government in the Budget for FY17 imposed a 12.5 % duty on imported jewellery to check the misuse of the FTA with Indonesia.
Photo Courtesy: India24hourslive.com