Customs to ask passengers about source of fund for buying gold

Tags: News
Seeking to check gold smuggling, the government today tightened baggage rules requiring inbound Indian passengers to provide details like source of funds for importing the metal as well as their air tickets.

According to a Revenue Department circular, the baggage receipt issued by Customs will now include the engraved serial number on gold bars and item-wise list of ornaments.

"Wherever possible, the field officer, may ascertain the antecedents of such passengers, source for funding for gold as well as duty being paid in the foreign currency, person responsible for booking of tickets, etc," it said, adding, the decision is aimed at preventing misuse of the gold import facility.

The Customs apprehend that some unscrupulous elements are smuggling gold by hiring eligible passengers to import gold on their behalf.

The norms have been tightened following "a spurt in import" of gold by eligible passengers through various airports in the recent past across the country.

Eligible passengers are allowed to be import gold up to 1 kg by paying 10 per cent customs duty in foreign currency. Eligible passenger means Persons of Indian Origin or an Indian returning to India after a period of 6 months of stay abroad.

Both government and Reserve Bank had been expressing concern over spurt in gold import following the curbs which were imposed to reduce the widening Current Account Deficit (CAD).

The curbs included higher import duty (10 per cent) and linking the imports to exports under the 20:80 scheme of RBI.

The restrictions have paid desired results as gold imports fell significantly and also the CAD, which is expected to be below USD 45 billion this fiscal as against all time high of USD 88.2 billion in 2012-13.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Child abuse needs to be tackled with the seriousness it deserves

    The Bangalore rape case has again brought into focus an issue we Indians forever shy away from facing up to — child sexual abuse.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

<b>Riskfactor</b>: THE BASE RATE BIAS

Base rate fallacy, also called base rate neglect or base ...

Parvez Imam

Revisiting history can do us all good

We often think that we understand history. We read it ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture