The Directorate General of Foreign Trade of India (DGFT) plans to raise the norms of creating added value for gold jewelry in order to suppress circular deals with this metal.
In addition to the previously announced increase in duties on gold imports and the introduction of a commitment to the export dates of products made from it, DGFT believes that new measures should be developed to limit circular transactions. The Directorate of Revenue Intelligence has received many reports that traders mimic the changes allegedly made in imported gold in order to meet the requirements for exports. Then this gold is exported and re-imported. If fictitious exports can be stopped, then the import of gold will dry up.
Since this trend was noted mainly in the work with large jewelry, a proposal was put forward to raise the norms of creating added value for exported jewelry from the current 3% to 5%, official sources said. At present, this rule will not apply to lightweight jewelry.