Raza Khan

The Ministry of Commerce has proposed to constitute a special committee for allotment of quota to import the gold to registered jewelers in the country, said a report.

“The proposed committee will be notified by the ministry in consultation with Federal Board of Revenue (FBR),” according to a report submitted to Senate Standing Committee on Commerce.

According to data, gold worth $ 23.006 million was imported during the last two fiscal years. The proposed committee will allow import quota of gold up to a maximum of five tons initially for the first year to registered jewelers as per approved procedures, the ministry said. “The per anum quantity will be reviewed by the ministry of commerce and State Bank of Pakistan,” the report said.

One member of the committee would be included from the Operation Wing of Inland Revenue of FBR, said the documents. The jeweler applying for quota to import the gold, must be registered under Sales tax Act 1990 and has return filed for past one year, the proposed document said.

According to another condition, the jeweler must also register himself with Trade Development Authority of Pakistan (TDAP) as importer of gold.

The jeweler must not be income tax defaulter and may declare source of financing for import of gold, the ministry said in its set of proposals, adding TDAP officials will visit to examine physical business premises of jeweler willing to import gold.

First time quota would be allotted as percentage of turnover of an applicant decided by the committee and subsequently additional quota will be allowed on verification of input-output declaration of utilization of imported gold, said the document.

“The jeweler may proceed to import the gold once he receives the quota license,” the ministry proposed, adding that transaction made for import of gold would be as per approved procedures of SBP.

The import quota of gold would be allotted for one year, the document said, adding that in case the quota is consumed before the end of year, the jeweler would be allowed to file another application for additional quota subject to availability.

The gold can be imported only in bullion form as one consignment or in parts with customs authorities maintaining the record and debiting the quantity with each import from allowed quota for importer, the ministry of commerce suggested.

According to draft proposal, customs authorities can specify the ports of entries from where gold import would be allowed. Moreover, all the jewelers availing quota of gold are required to mention quantity of pure gold with karat and wastage of sale invoices on the basis of which new quota would be allowed.

The special committee assigned to allot quota, may cancel import quota of the jeweler or registration or both in case of deliberate act of misleading the committee by providing wrong information, the document said.

At present, the import of gold is being regulated through Import and Exports of Precious Metal Jewelry and Gemstones Order 2013 and Import and Export of Currency Notes and Coins, Foreign Exchange Manual, Jewelry, Gold and Silver, Foreign Exchange Manual of State Bank of Pakistan and Import Policy Order 2022.

Credit : Independent News Pakistan-WealthPk