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The Director-General of Foreign Trade has scrapped the clause that made it mandatory for nominated agencies to sell at least 15 per cent of gold imported by them to jewellery exporters. DGFT has nominated a few agencies, star trading houses, and trade bodies to import gold in addition to designated banks and state-owned agencies.
Last year, DGFT clarified that such “nominated agencies were required to disburse a minimum of 15 per cent of imported gold to jewellery exporters.” However in a circular issued on Tuesday, the body has withdrawn this clause, allowing importers to sell the entire gold imported by them to domestic traders.
According to an industry official, exporters were not keen on buying gold from nominated agencies as it increased their costs by 1-2 per cent due to fees charged by them.
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