NEW DELHI, Feb 21 – India has suspended the import of gold jewellery from Thailand until the certificate of origin proves that it is not sourced from a third country.
“In view of the increasing import of gold jewellery from Thailand, the Department of Commerce has asked the Department of Revenue to issue notification suspending the import of gold jewellery from Thailand under the provisions of Early Harvest Scheme until the certificates of origin issued by Thailand are verified to our satisfaction,” the Department of Commerce said in a statement.
India is the largest importer of gold, which is the second highest contributor to India’s import bill after petroleum product. According to reports, the Early Harvest Scheme signed by India and Thailand in 2004 allows import of gold jewellery at a concessional duty of one per cent against a regular duty of six per cent.
The Indian government is tracking closely the import of gold as it is denting the country’s current account deficit (CAD).
Last month, the government raised import duty on gold and platinum to six per cent from four percent to curb excessive import of the commodity. Gold imports in 2011-12 amounted to US$56.5 billion and in the current fiscal year up to December 2012, gold imports are estimated at US$38 Billion.
The CAD widened to a record high of 5.4 per cent of gross domestic product (GDP) or US$22.3 billion in the July-September quarter.
BERNAMA
