look news india
Government bans import of studded gold: The central government has banned the import of certain types of gold jewellery under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The Directorate General of Foreign Trade (DGFT) has issued a notification in this regard.
No import restrictions will apply under the India-UAE Free Trade Agreement TRQ (tariff rate quota). Import of gold jewellery studded with diamonds and pearls, certain types of diamonds and other precious and semi-precious stones was banned, DGFT said.
Industry experts said, import of this type of jewellery has been banned. The government said that this decision will directly affect diamond-pearl gold jewellery imported from Indonesia and Tanzania. Import of items under the banned category requires a lien or permission from the government.
The reason behind the ban
The central government levies a 15 percent duty on gold imports, however, recently under the Indo-Asian Free Trade Agreement, the import of diamond-pearl gold jewellery from countries like Indonesia and Tanzania has increased. It is known that traders are making good profits by importing duty free gold from these countries and melting it in the country.
India has signed a free trade agreement with Indonesia. Therefore, the import of these jewellery from Indonesia has increased manifold. At the same time, the central government has taken this step after the import of these items increased from Tanzania.
