DGFT gives nod to company?s request, says others can also get assent if case is genuine
In a first, the office of director general of foreign trade (DGFT) has allowed Titan Industries to import gold directly.
?The Tata Group company told us that that this would help them save 1% on the costs, and so we gave them the permission,? said DGFT Anup Pujari.
?Titan approached us, requesting for a licence to directly import gold. And since DGFT is empowered to grant an exemption under specific cases, we have decided to grant a licence to them,? Pujari told FE.
As per the policy, only authorised agencies and public sector units like MMTC are allowed to import gold directly through which others source their gold needs.
However, a private company can be granted this licence if the use is for domestic purposes only. Titan has clarified that the gold imported directly will be used for its jewellery brand Tanishq and in the making of Titan watches, Pujari said.
On being asked whether DGFT will allow other users to import gold directly, he said, ?If the company or individual approaches us and has a genuine case then DGFT under its jurisdiction can allow it to import gold directly.?
The move comes as a breather for bullion traders, gold importers and jewellers, who are on strike protesting the proposed increase in the import duty on gold and imposition of excise duty on unbranded jewellery.
Gold imports have seen an increase of 45% from $40 billion in 2010 to $58 billion in 2011. The country has witnessed a rise of 30-35% in gold prices in the last one year.