Imports of so -called liquid gold appeared because the ingenious importers discovered a new method to skip the customs obligation almost five years ago, the import data showed. After the last budget, he added another tax angle route, and such shipments accelerated even more.
Gold compounds with other elements – also called liquid gold – are mostly used in industrial processes. Importers send them to zero duties from countries such as SAE, Japan and Australia, which have business contracts with India, compared to 6% of yellow metal obligations. As soon as the shipments land in the ground, gold is extracted in small refineries.
The import of such compounds increased during the year 9.25 times more than a year earlier and 2.84 times quarter to 69,879 kg in the January-Born period, showing data from the General Directorate of Commercial Information (DCGIS). This corresponds to the imports of gold worth $ 1.29 billion.
By comparison, the actual gold consignments dropped by 51.2% gradually AO 0.9% per year earlier to $ 9.5 billion in Q4FY25. While higher imports of gold compounds interfere with business data, they also cause the treasurer’s loss.
India imported 1.11 856 kg of liquid gold from SAE, Japan and Australia in FY25. Because the actual gold content of such imports is at least 15%, it works on a gold delivery of 16,778 kg. At an average price £90 Lakh on kg of gold, the government lost £906 crore in customs duties during fiscal calculation.
Although it is legally allowed, the market is distorted because there is a huge discount because one person imports gold to 6% of duties, while the other imports them in compound form at 0% duty, said Surendra Mehta, national secretary of the Association of Indian Bullions and Jewelers. People importing gold compounds sell yellow for highly discounted rates, which makes it impossible to discover prices, he said.
Questions sent by the E -mail to the General Directorate of Foreign Trade (DGFT) and the Ministry of Trade and Industry remained unanswered.
Spike After Curbs On Platinum Alloy Imports
Gold compounds such as oxide ears oxide, chloride marches, gold trichloride, gold sulfide, double sulphites of gold and gold cyanide, are primarily intended for industrial and scientific purposes, said Brijesh Kothary, partner in Khaitan & spol. Medicine (for therapeutic treatment) said.
Certainly, the import of gold compounds was 2,143 kg in FY21 when this route was largely uninvited. Since then, shipments over the years at 1,27,886 kg in FY25 have appeared 59 times, showing data from DGCIS.
However, these imports increased in January-Březni quarter due to policy change. DGFT inserted platinum alloys with less than 99% platinum in the “limited” category from “free” in March after announcing a change in the budget in February. Importers will now need a DGFT license for such shipments.
Under the Customs Tariff Act, an alloy with platinum above 2% qualifies as a “platinum alloy”. Importers brought an alloy with only 2% platinum and 98% gold.
“Some importers used a gap and imported platinum alloy from certain countries that had most of the gold and paid zero percentage,” the official said on the condition of anonymity. Now that platinum alloys are moved to a limited category, gold compounds began to import to save the obligation, the person said.
According to Kothara, it is classified under the HS 2843000 Customs Act 2843000 of the 1975 Customs Act, Liquid Gold attracts 10% of the basic customs duty. “However, Dovody from Japan, SAE and Australia are allowed at the zero percent of basic customs duties within the comprehensive economic agreement of India-Japan (CEPA), India-Aae Cepa and India-Australia Economic and Trade Agreement.”
Most of the golden imports into the country come mainly from these three nations, which represented approximately 87% of such shipments.
Beveled import data
“Gold compounds usually come in lower purity, where around 15-22% is gold, but can be easily improved in pure gold,” the bank official said, spoke on the condition of anonymity. “Those who have a refinery can do it themselves because it is a simple process and those who cannot outsource.”
What is still facilitating is that the importers receive direct delivery of consignments and do not require any permit. Gold importers, on the other hand, need a DGFT license and yellow metal is imported through India International Bullion Exchange (IIBX) in a gift city and nominated banks.
It discourages gold imports through IIBX, said Mehta from the Bullion Association. “This can reduce the volumes on Iibx.”
According to the quarterly IFSCA in FY25 in FY25 in FY25 in FY25 in IIBX V IIBX in IIBX, it grew 11.7 times to 93,072 kg.
The situation may also distort data on imports of India, he said that the bank official quoted earlier. “Gold imports may look lower, but gold is still coming, just below another HS code, which does not classify it as gold. So politicians can falsely believe that gold import has fallen when the route has actually changed.”
(Tagstotranslate) import of gold
