Page 10 - Bullion World Volume 02 Issue 01 May 2022

Bullion World | Volume 2 | Issue 01 | May 2022

Q- What is the cause of worry in if the scrap gold will be coming
the provision made under this just on 0% import duty, our whole
section (Scrap gold)? import will depend on scrap gold
Mr Chandu Siroya: There are a only. It will affect a lot of refineries
lot of talks going on in the bullion and banks. And if there is going to
circle in India and the UAE. be a 40% value addition, we cannot
According to the section mentioned import at that value.
here, there is no import duty to
import scrap gold into India from IBJA has already put a letter to the
the UAE. If this truly is true, it will ministry to clarify this 0% customs as good as non-operative except if
be a game-changer because we duty, 40% value addition and from there is some scrap you may have
will have a lot of scrap gold going where it all will come. But I think it’s because of the refining process.
into the Indian market from the only 0% duty on concentrated gold,
UAE. We have to wait and watch. which contains significantly less Specifically, what are the rules of
But as it stands under the law, all content of gold. origin say to it?
scrap gold is free of duty. Mr Bhargava Vaidya: Rules
Mr Bhargava Vaidya: Looking at of origin here say there should
Q- What are your views towards Indian customs, it will be impossible be a local manufacturing set-
this scarp? Your comments, to operate at this clause, even if up that satisfies as it is actual
please. any scrap is allowed. We also have manufacturing. Again, the customs
Mr Prithviraj Kothari: The 0% duty one line that we have followed will say, this is not a scrap. This is
scrap you are talking about, a 40% every clause and the intention of a waste that can be recycled very
value is added to it. So, it is not the agreement in the spirit and easily. So, it’s better to wait for the
possible that one can sell gold in later, in which we have to give a custom and trade to come with
India after adding 40% of its value declaration to customs, and the a clarification; no need to fear or
addition. I don’t think any country customs will always find a fault. So, go into the wrong court. I request
will send scrap gold after 0 import I think there will be a clarification Kothari jee to get IBJA into it and
duty but 40% value addition. And to the contrary, but this clause is get more clarification.

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