India has reportedly suspended import of gold jewellery from Thailand.

New Delhi, Feb 20/Nationalturk – Suspecting foul play in import of gold from Thailand, India has reportedly suspended import of gold jewellery from Thailand.

“In view of increasing import of gold jewellery from Thailand, the Department of Commerce has asked the Department of Revenue to issue notification suspending import of gold jewellery from Thailand under the provisions of “Early harvest scheme” till the certificates of origin issued by Thailand are verified to our satisfaction,” an Indian official spokesman said today.

The “Early harvest scheme” was implemented between India and Thailand on September 1, 2004. It allows import of gold jewellery from Thailand at 1% customs duty.

Sources said in recent years, imports of gold jewellery from Thailand have risen substantially due to the increase in customs duty on imports of gold jewellery from other countries.

Gold jewellery import from Thailand increased last year

“Gold jewellery imports from Thailand saw a huge jump between March-November 2012 after the government announced hike in customs duty on import of gold,” they said.

They said Indian government suspects that norm of value addition of 20 per cent is not being adhered. “The government suspects that instead of gold jewellery, gold was being imported into India from Thailand. The government also believes that most gold jewellery imported from Thailand is coming from China and Malaysia as Thailand is not a known gold jewellery producer,” sources added.

The officials of India’s Directorate of Revenue Intelligence (DRI) in December conducted raids on many jewellers across the country for allegedly importing jewellery from third countries via Thailand taking advantage of lower customs duty on gold ornaments under the ‘Early harvest scheme’ agreement.

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Faiz Ahmad / NationalTurk India News

 

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