March 22: The new government is likely to amend various clauses in the Customs Rules to make available duty-free gold from 9 designated agencies (which were recently permitted to trade in gold) for the jewellery exporting community. These rules currently make it difficult for the jewellery exporting community to get duty-free gold. Also, for various reasons citing these restrictive rules, the designated agencies have been selling duty-free gold only to those active in the domestic tariff area (DTA) and almost avoid the exporting community.Currently, the jewellery exporting community is forced to give a hefty 72 per cent ex-bond bill of entry to the customs department, the clearance of which takes over four to seven working days. The exporter is able to get duty-free gold only after the clearance of these documents by the customs department.
``In an extremely competitive era, given the high fluctuations in both interest rates and gold prices, these delays prove to be costly to the extent that an exportercould get wiped off if gold prices go against him,'' says Aziz Zaveri, gold convenor at the Gems & Jewellery Export Promotion Council.
``What we want is easier norms which entitle us to get the gold against the required payment and certificate of exports,'' Zaveri added.
The restrictive customs rules were enforced last February in Mumbai, before which they were enforced in Calcutta and Delhi. Soon after the rules were enforced, the jewellery exporting community had resorted to a week-long strike in the second week of February to press the government for making changes in customs rules.
Prior to the exporters resorting to the strike, even the Gems & Jewellery Exporting Council had lobbied the government on this subject.
``Now that the government is in place, we expect both the commerce and finance ministries, in consultation with the customs department, to amend the rules as has been promised earlier,'' said Pravinshankar Pandya, president, Gem & Jewellery Export Promotion Council. According to Zaveri,the jewellery exporting community annually requires around 30,000 kg of gold, most of which is expected to be available from the 15 designated entities allowed to trade in gold.
``The amendments to customs rules would help us save on interest costs and shield us from international price fluctuations in gold,'' Zaveri said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
