Duty-free gold coin import continues from Korea Photocards for hallmarked jewellery, says BIS

The customs department is seeking a bank guarantee equivalent to the normal 15 per cent import duty for shipments of gold coin from South Korea but it has had no effect on the flow.

As already reported, these imports have recently ballooned, exploiting a loophole in the free trade agreement (FTA) signed with that country. After July, another 12-13 tonnes is understood to have arrived so far from Korea. The imports are at zero duty and those doing it prefer to also give the bank guarantee asked, say sources, beside any other information the Customs might ask.

Sources aver the way importers are providing all information to Customs in writing, it is clear the former are confident about their legal interpretation on such import.

The government has allowed the office of the director-general (safeguards) in the finance ministry to consider complaints. The industry has done so, arguing such import is hurting genuine bullion dealers and jewellers.

India Bullion and Jewellers Association has stated that in their global meet in Goa last weekend, it was disclosed that since July 1, when the goods and services tax (GST) took effect, about 10 tonnes of gold coins and articles (about a fifth of the normal monthly import) had come in, disrupting the regular market, “which is The Bureau of Indian Standards (BIS) plans to make hallmarking of gold jewellery compulsory and, as a first step, it has proposed photocards for hallmarked jewellery.

Currently, the hallmark logos on jewellery are very small and difficult to decipher. The authenticity of these logos also remains suspect.

To address this problem, the BIS has proposed to introduce a photocard, of the size of a credit card, with each hallmarked jewellery. This photocard will carry all the details of the product, including a magnified picture of the four hallmark logos, the caratage of the jewellery, the name of the jewellery shop, and the name of the hallmarking centre. already reeling under the pressure of parallel trade. It is proposed that for gold and gold articles, a GST cess be levied, partly by reducing basic customs duty in such a manner that the net tax impact becomes equivalent for goods imported into the country both from non-FTA and FTA countries”.