IBJA urges govt to stop duty-free import of gold dore from least developed African nations

India Bullion and Jewellers Association (IBJA) has urged the government to immediately stop the duty-free import of gold dore from least-developed African countries like Guinea, saying it is causing a huge loss to the exchequer.

Currently, the import of gold dore bars from ''Least Developed Countries'' attract zero duty. Otherwise, the import duty on gold dore bars is 14.35 per cent with actual user conditions. On refined gold, the import duty is 15 per cent.

In a representation made to Prime Minister Narendra Modi, IBJA national secretary Surendra Mehta said that currently, a gold dore importer is required to submit to the customs a bond for 0.65 per cent duty differential of gold and gold dore and also for purity verification.

''It has come to our notice that gold dore is imported from countries like Conakry - the capital of Guinea, at zero per cent duty based on Directorate General of Foreign Trade (DGFT) authorisation, without obtaining any authorisation certificate and bond which is required to be submitted to the customs. Many such consignments have been cleared at the customs part,'' he said.

About 600-800 kilogramme of gold dore has been imported in the last one-and-half months at zero duty from the least developed nations, Mehta told PTI.

Currently, gold dore is imported by refiners under HSN code 71081200.

''We urge the government to immediately stop the import of gold dore from least developed countries,'' he said, adding that this practice of importing gold dore from such countries is creating an unequal playing field and also resulting in a huge loss to the exchequer as well as to genuine refiners.

IBJA said the authorisation to import gold dore bars is issued by DGFT only to those refiners who are BIS (Bureau of Indian Standards) and NABL (National Accreditation Board for Testing and Calibration Laboratories) approved.

A representation to the prime minister was made after the US government issued an advisory on June 27, on gold imports from conflict-ridden countries in Africa.

The US advisory highlighted the risks related to the gold trade, including conflict and terror financing, money laundering activities, sanctions evasion, human rights and labour rights abuses, and environmental degradation.

Sub-Saharan Africa produces 25 per cent of the world's gold each year.

The World Gold Council (WGC) stated that the US government is taking action to ensure that illegally mined gold from the African region does not make its way into the formal supply chain.

''The World Gold Council supports all initiatives that promote the responsible sourcing and production of gold. We are committed to working collaboratively to ensure sanctions are effective while also minimising disruption to the well-governed global gold market,'' it added.

India imports around 800 tonnes of gold annually, of which about 40 per cent is dore gold.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)