South Korea Gold Import Might Be Banned In India By Government
The Directorate General of Foreign Trade (DGFT) has asked the two leading Gold and Jewelry Trade Body, Gem and Jewelry Export Promotion Council (GJEPC) and the Boolean Federation of India to discuss the removal of sanctions on gold items and jewelry from South Korea. Government of India had signed a comprehensive economic partnership agreement with South Korea in 2010 to promote mutual commercial facilities. DGFT is part of the commerce ministry.
The government had banned such imports from South Korea after the floods of complaints from the Trade and Industry side last year. It is now known that it is thinking about removing the ban. On Friday, the Government of India hosted leaders of 10 ASEAN countries on the occasion of Republic Day, with whom it has a free trade treaty. In the Free Trade Treaty (FTA/CEPA), bilateral trade is allowed on a discounted rate or zero rate for promoting industry and business in each other.
On behalf of Bain Boolean Traders, the trade body and Commerce Ministry’s sponsored GJEPC was imposed on the complaint. It was argued that some traders are misusing the FTA in import of jewelry and other items of gold. Government imposes customs duty of 10% on bullion imports. Due to the FTA, a one-sided ban against South Korea cannot continue, so the government wants to know how to re-import trade items such as gold products to consider again.
Boolean federation does not want gold imports from South Korea to be completely banned. However, its director Rahul Gupta has said that he is not absolutely right from South Korea or other ASEAN jewelry or gold import. Gupta said, “We have to see how such imports can prevent any kind of domestic trade from getting disturbed.” One measure may be that such import B2B sales should be banned and it is necessary to sell end customers in the same condition. GST credit should not be given to the trader on any B2Bsale.”
GJEPC Chairman Pramod Agarwal said, “We want to promote trade and manufacturing through such FTA or such agreements, but there should not be any impact on the manufacturing and employment prospects due to the change in business conditions.” According to Gold Trade sources, some traders were accused of round tripping through gold imports through banks on export of zero duty on exports.