India Tightens Gold-Import Rules to Curb Trade Irregularities

  • India restricts imports by four- and five-star export firms
  • Move comes as traders try to circumvent paying import tax

Gold chains and necklaces sit on display inside a store in the Zaveri Bazaar area of Mumbai, India.

Photographer: Dhiraj Singh/Bloomberg
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India moved to curb gold-trade irregularities by preventing some trading houses from importing the metal following a surge in shipments in recent months.

The second-biggest consumer won’t issue or renew authorization to firms nominated by the Reserve Bank of India that fall under the so-called four- and five-star categories, the trade ministry said in a notice on its website. Those companies that already have permits can import gold to be used in manufacturing and then for export during the remaining license period, it said.