Import duty on gold findings slashed to four per cent
September, 21st 2012
The government has lowered the customs duty on gold findings to 4 per cent from 10 per cent, a development which the industry says will promote jewellery exports.
The Central Board of Excise and Customs (CBEC) has lowered the import duty on gold bars, gold coins having gold content not below 99.5 per cent and gold findings, other than imports of such goods through post, courier or baggage.
Gold findings are small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place.
The high duty on findings had started depicting an adverse effect on the total export of jewellery from the country, Gem and Jewellery Export Promotion Council (GJEPC) Chairman Rajiv Jain said, while welcoming the government decision to reduce the import duty to 4 per cent.
Gems and jewellery exports accounted for 14 per cent of the total exports earnings of the country, Mr. Jain said.
The import duty on gold findings has been increasing over the last two years.
In the Union Budget for 2010-11, first, it was increased from Rs.500 to Rs.750 per 10grams.
The same was increased on January 16, 2012, from Rs.750 per 10 grams to 5 per cent which was subsequently increased to 10 per cent in the 2012-13 Budget.