India to import 25 tonnes of duty-free gold from South Korea: Officials

STOCK MARKET - Indian traders are likely to import 25 tonnes of gold from South Korea in July and August, taking advantage of a recent tax change that allows importers to ship in gold without paying a 10 per cent customs duty, industry officials told Reuters.

The cheap imports are putting pressure on local refiners and banks who cannot match the steep discounts being offered on bullion sales from the duty-free gold from South Korea.


"Already 12 tonnes have been landed from South Korea since the implementation of GST. By the end of this month imports could be around 25 tonnes," James Jose, secretary of the Association of Gold Refineries and Mints told Reuters.

India, the world's second biggest gold consumer after China, imposes a 10 per cent import duty on gold, but this does not apply to countries with which it has signed Free Trade Agreements (FTAs), like South Korea.

To avoid duty-free imports from those countries, India previously imposed a 12.5 percent excise duty. However, this was scrapped along with other local taxes when a Goods and Services Tax (GST) was introduced from July 1.

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