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Gold imports are set to restart with the Government deciding to help Customs officials correctly interpret the recently notified RBI rules on imports.
Gold imports had almost come to a halt after the RBI notified on July 22 that 20 per cent of the gold brought into the country by an importer would have to be re-exported. The main reason cited by importers was confusion at Customs stations on what the new norm, called the 80:20 rule, actually entailed.
Some Customs staff assumed that the RBI notification had capped the exports at 20 per cent.
“We are now explaining to them that 20 per cent is the minimum amount that is to be exported and not the maximum,” a Commerce Department official told Business Line after a meeting of top officials from the RBI, Central Bureau of Excise and Customs, public sector sourcing agency MMTC, and banks.
“There is no problem with the RBI notification. There were problems interpreting it. The RBI and the Customs have agreed to write to staff at Customs stations explaining the nuances,” the official said.
At the meeting, it was decided to appoint focal officials in the RBI, the Commerce Department, the CBEC, and MMTC to ensure imports take place smoothly.
Gold imports hit a record high of $8 billion in May, but declined to $2.9 billion in July and $650 million in August, following the introduction in July of the 80:20 rule.
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