Mumbai, Jan 1 (KNN) In a move which will help the small and medium jewellery makers, the Reserve Bank of India (RBI) has eased restrictions on import of gold dore, and has allowed the refineries to import 15 per cent of their gross annual requirement in the first two months and the balance as per export performance.
“Refineries are allowed to import dore up to 15 per cent of their gross average viable quantity based on their licence entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis,” the RBI said in a communications to banks.
Subsequent to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance, RBI added.
However, RBI said that before the next import, not more than 80 per cent shall be allowed to be sold domestically.
Till now, dore import was banned and gold refineries were sourcing their input from scrap gold.
In August, the RBI had imposed curbs on gold imports and linked it with exports. Accordingly, 20 per cent, of every lot of gold imported had to be exclusively made available for exports and the balance (80 per cent) for domestic use.
RBI also said that they have issued the instructions after taking into account the representations received by the Government and RBI related to import of gold dore.
Furthermore, the apex bank said that the dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle.
The imports, thereafter, shall be allowed only up to 5 times the quantum for which proof of export has been submitted. This shall be on accrual basis.