The commerce ministry imposed restrictions on import of gold by four and five star export houses, stipulating that they would cease to be nominated as agencies.
According to officials, the restrictions imposed by the Directorate General of Foreign Trade (DGFT) is aimed at curtailing gold imports, that has surged two times more than USD 16.95 billion during the first half of 2017-18.
The directorate stated that no nominated agency certificate shall be issued or renewed for four and five star status holders.
Four and five star status are given to those export firms which have exported goods worth over USD 500 million and USD 2 billion, respectively, during the previous years.
Image Source: NDTV
Import of gold by four and five star houses with existing nominated agency certificate is subject to actual user conditions. They would be permitted to import gold as input only for the purpose of manufacture and export by themselves during the remaining validity period of nominated agency certificate.
Surge in gold imports has a direct impact on current account deficit.
Source: Business Today India