Institutionalisation of Bullion Trade

Gem and jewellery exports have been growing steadily since 2002-03.  However, some decline has been noticed in the year 2012-13 and 2013-14, which was due to the global economic slowdown.  The details of gem and jewellery exports during the last five years are given below:-

Source: DGCI&S

Gem & Jewellery Export Promotion Council has reported that Shanghai Gold Exchange is introducing a trading platform in the Shanghai Free Trade Zone for overseas investors to trade their products directly.

With a view to institutionalize the bullion trade, Government has taken a number of measures, which include:-

1)      Permitted import of gold on consignment basis by both nominated agencies and banks to meet the needs of exporters of gold jewellery.

2)      Prohibited import of gold in the form of coins and medallions.

3)      80:20 Scheme was introduced by RBI for import of gold by nominated agencies/banks which provides for 20% gold to be made available to exporters out of each consignment imported in the country and the balance for domestic use.

4)      Import of gold is allowed under Advance Authorization/Duty Free Import Authorization and Replenishment Scheme to exporters.

5)      Star Trading Houses/Premier Trading Houses have been permitted to import gold under the 80:20 Scheme.

6)      Entities/units in the SEZ and EoUs, Premier Trading Houses/Star Trading Houses (irrespective of whether they are nominated agencies or not) are permitted to import gold exclusively for the purpose of exports. Gold provided to these units by Nominated Agencies/banks will not qualify as supply of gold to exporters for the purpose of the 80:20 scheme.

7)      Customs duty on import of gold has been gradually increased from ₹ 300/- per 10 gms to 10%.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.