RBI allows refiners to import gold dore

The Reserve Bank of India (RBI) has allowed gold refineries to import dore (semi-pur gold alloy) amidst rising demand for gold jewellery and a spurt in smuggling of the precious metal following curbs on gold imports.

Accordingly, refiners can import gold dores 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.

Henceforth, the quantum of gold dore to be imported would be determined lot-wise on the basis of export performance.

Importers will not be allowed to sell more than 80 per cent of the imported gold in the domestic market before the next import.

The dore so imported and refined should be released on FIFO basis following the 20:80 principle. This will be monitored by Central Board of Excise and Customs as per the existing practice.

Thereafter, imports will be allowed only up to five times the quantum for which proof of export has been submitted, that too on an accrual basis.

Till now, gold dore imports were banned and gold refineries had to source their inputs from scrap gold.

RBI and the government had imposed several restrictions on gold consumption, including raising import duty following a spurt in the country's current account deficit (CAD) to 4.8 per cent of the country's GDP.

RBI had mandated imports of the precious metal against suppliers' or buyers' credit, on 100 per cent cash margin, and on a document against payment basis.