On 25 Aug 2017, imports of gold and silver items from South Korea is restricted by The government in an effort to check spurt in incoming shipments of precious metals from that country.
This comes in the wake of more than a $1 billion worth of gold imports from South Korea between July 1-August 21.
The government put rustication on all types of gold and silver counting gold bars silver coins and jewellery.
Also Read – Goods and Service Tax impact on gold jewellery
The decision was formally announced by the Directorate General of Foreign Trade (DGFT) in the Union Commerce Ministry through a notification, which read, “Imports from South Korea of articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal, articles of goldsmiths’ and silversmiths’ wares and parts thereof and coins are restricted.”
This was done for a try to check a sudden increase in incoming shipments of precious metals from the country. The importers will now have to obtain a license from the DGFT for importing gold and silver from South Korea.
These restrictions are being imposed against the backdrop of sudden flow in imports of precious metal from South Korea, with which India has a free trade agreement since January 2010.
Under the free trade deal between India and South Korea, basic customs duty on gold was removed.
Further, the 12.5 percent countervailing duty on gold imports has been subsumed in the Goods and Services Tax (GST). Accordingly, the imports now attract only 3 percent integrated GST.