Ministry of Commerce rules to enable foreign buyers to provide gold to SEZs free of charge

The Ministry of Commerce and Industry has ruled to enable foreign buyers to provide gold to Special Economic Zones in India free of charge. The move is designed to boost the industry and strengthen links with international businesses. 

“This victory paves the way for enhanced trade opportunities, allowing for the free supply of gold from foreign buyers and its subsequent export back to the same foreign buyer,” announced the Gem and Jewellery Export Promotion Council on its website. “This achievement marks a milestone for the GJEPC.”
 
The notification G.S.R. 105(E) comes into force immediately and the provision has been added after the word “Agencies” in sub-rule (6) of rule 27 of the Special Economic Zones Rules, 2006. The notification was signed by joint secretary Vipul Bansal.

“Scale economies have become very important nowadays,” said Sunil Barthwal, secretary at the Department of Commerce in the Ministry of Commerce and Industry ahead of the reforms, The Hindu reported.  “Reforms in the SEZ are in the offing so that movement of goods from SEZ to DTA and vice-versa are not affected rendering goods produced becoming less competitive. The industry, which had always sought protection in the past, will now have to integrate with the global value chain and look at where the competitive advantage lay.”