 "Thailand in favour of lifting ban on gold exports to India")
Thailand has set up a committee of senior government officials and trade representatives to discuss the trade barriers in gold jewellery exports with India.
Talking on the sidelines of the Thailand Shopping Festival-2013 here on Sunday, Adul Chotinisakorn, executive director and consul (commercial), Thai Trade Centre, said: “We are concerned about India’s trade deficit, but we want India to open up gold jewellery import from Thailand, accompanying with the certificate of origin as per the guidelines set in the free trade agreement between the two countries.”
Chotinisakorn said Thailand was extremely serious about 20 per cent value addition norm set in the FTA in gold jewellery in the country of origin. But the FTA signed between the two countries include the term that even gold jewellery, along with the certificate of origin, can be exported at concessional duty to India without any hesitation.
India had in February this year banned import of gold jewellery from Thailand to control widening current account deficit (CAD) after the Directorate of Revenue Intelligence found in various raids on jewellers that the rules of bilateral trade were violated. India – Thailand FTA allows gold jewellery imports at a concessional duty of one per cent as against the prevailing high rate from other origins. Interestingly, jewellery importers use Thailand route to import gold ornaments even from other origins.
But Thailand’s move assumes significance in the wake of India’s continuous effort to restrict gold import, which the government feels is extremely necessary to control CAD.
The bilateral trade between India and Thailand was recorded at $8.6 billion in 2012, which is likely to remain around the same level in 2013. “India imports only four per cent of its gold demand from Thailand. The remaining comes from Dubai. Hence, the import from Thailand is not so significant which calls for ban,” said Chotinisakorn.
India, the largest consumer of gold, imported $38 billion worth of gold and jewellery in the financial year 2012-13, 4 per cent of which constitutes around $1.52 billion from Thailand.
Over 60 companies showcased their innovative products in Thailand Shopping Festival 2013 especially in jewellery, decorative articles, food and leather products.
Entire quantity of polished diamond required by jewellery manufacturers in Thailand is met through exports from India.
Talking on the sidelines of the Thailand Shopping Festival-2013 here on Sunday, Adul Chotinisakorn, executive director and consul (commercial), Thai Trade Centre, said: “We are concerned about India’s trade deficit, but we want India to open up gold jewellery import from Thailand, accompanying with the certificate of origin as per the guidelines set in the free trade agreement between the two countries.”
Chotinisakorn said Thailand was extremely serious about 20 per cent value addition norm set in the FTA in gold jewellery in the country of origin. But the FTA signed between the two countries include the term that even gold jewellery, along with the certificate of origin, can be exported at concessional duty to India without any hesitation.
India had in February this year banned import of gold jewellery from Thailand to control widening current account deficit (CAD) after the Directorate of Revenue Intelligence found in various raids on jewellers that the rules of bilateral trade were violated. India – Thailand FTA allows gold jewellery imports at a concessional duty of one per cent as against the prevailing high rate from other origins. Interestingly, jewellery importers use Thailand route to import gold ornaments even from other origins.
But Thailand’s move assumes significance in the wake of India’s continuous effort to restrict gold import, which the government feels is extremely necessary to control CAD.
The bilateral trade between India and Thailand was recorded at $8.6 billion in 2012, which is likely to remain around the same level in 2013. “India imports only four per cent of its gold demand from Thailand. The remaining comes from Dubai. Hence, the import from Thailand is not so significant which calls for ban,” said Chotinisakorn.
India, the largest consumer of gold, imported $38 billion worth of gold and jewellery in the financial year 2012-13, 4 per cent of which constitutes around $1.52 billion from Thailand.
Over 60 companies showcased their innovative products in Thailand Shopping Festival 2013 especially in jewellery, decorative articles, food and leather products.
Entire quantity of polished diamond required by jewellery manufacturers in Thailand is met through exports from India.