The Bangladesh Bank has awarded gold dealer registrations to 18 entities including one bank, Modhumoti Bank, to import gold bars directly from international market, especially from Dubai of the United Arab Emirates.
Apart from the bank, Amin Jewellers, Aroosa Gold Corp, Rotno Gold Corner, Amin Jewellers Limited, BDEX Gold and Diamond Ltd, Buraq Commodities Exchange Company, D Damas The Art of Jewellery, Diamond World, Golden World Jewellers, Jarwa House, Jewellery House, Laxmi Jewellers Ltd, M.K. International, Milon Bazar, Riya Jewellers, SQ Trading and Engineering and Sreeja Gold Palace Limited have got the registration.
The gold dealership registration will remain valid for two years and could be renewed upon payment of Tk 2 lakh in fees along with complying with other conditions.
However, Bangladesh Jewellers Samity president Ganga Charan Malakar, who also applied for gold dealer licence for Venus Jewellers, told New Age on Monday that the number of registered gold dealers might increase as many of the applications were not considered for minor mistakes.
Once the issues are solved, the central bank would issue licences to them as well, he said adding that the application for Venus Jewellers was not considered due to address-related complexity despite fulfilment of all other requirements.
He hoped that the issue would be settled soon and Venus Jewellers along with some other entities would be awarded gold dealer registrations.
Ganga Charan raised objection against a provision in the gold dealer licencing guidelines, which allows dealers to bring finished jewellery products to the county.
He said such scope would make the local jewellers’ business vulnerable.
The BB received 46 applications from banks, jewellers and other entities for gold dealer registration after it invited application on March 19.
Officials of the BB said that the registration of gold dealers would help end the country’s gold businesses’ dependency on smuggled gold as the country never imported gold since its independence.
Besides, the import of gold would create scope for exporting the gold jewelleries from the country after value addition, they said.
In October, 2018, the cabinet approved a gold policy based on a proposal from the industries ministry and the policy allowed the central bank to formulate separate guidelines.
Under the policy, dealers would be able to import gold without paying any tax except value-added tax.
However, BB officials raised question whether the customs authority had the preparedness to facilitate the gold import.
In the case of import of gold for export purposes, back-to-back import facility would be offered under the section 12 of the chapter 6 of the foreign exchange transactions, 2018 guidelines.
Currently, a passenger can bring 100 grams of gold to the country without paying duty and 234 grams with paying duty under the baggage rules of the NBR.
As per the estimation of the jewellers, the country’s present demand for the precious metal is around 42 tonnes or 42,000 kilograms a year.
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