Duty-free gold import junked for machine-made jewellery export

Govt action aims to arrest round tripping but will hurt genuine exporters

The Centre has withdrawn the Advance Authorisation Scheme for exporting machine-made gold jewellery, articles, coins and medallions.

Under this scheme, exporters were given permission to import gold without paying import duty but subject to conditions. They include export has to be undertaken within 90 days and the gold imported cannot be sold or transferred.

An official said that this move is aimed at arresting round tripping of gold which was over 100 tonnes last year and still continues. In round tripping, the same gold keeps moving and an exporter can get arbitrage advantage and cheap finance. Machine-made jewellery can be manufactured fast