India eases ban on gold exports through SEZs ; jewellery exporters to benefit

MUMBAI (Scrap Monster) : The Indian government has eased the ban on gold exports through Special economic zones (SEZs) by allowing units in the zones to export the commodity after value addition.

The Commerce Ministry of India had imposed a ban on gold trading through SEZs with effect from May onwards. As a result, the gold exports during May declined by about $0.8 billion. The Government in a fresh notification has made the provisions which were earlier only applicable for gold units outside the zones to be mandatory for the units in the SEZs.

As per the new directive, the gold units in the SEZs can export gold after a minimum value addition of 3% in gold jewellery and 5% in jewellery studded with gold and precious stones. The government initiative is aimed at boosting gold exports from the country.

Earlier value addition norm was not applicable to gold exports from SEZs. The Commerce Ministry has now acted upon complaints that gold from these units were being diverted to domestic markets.

The Gems and Jewellery Exports Promotion Council (GJEPC) has welcomed the decision. GJEPC supposses the new move could curb misuse and thus benefit genuine jewellery exporters.