Chinese central bank to ease gold import/export restrictions

BEIJING (Scrap Monster) :  The Chinese central bank in its draft policy issue Monday proposed various measures to boost gold imports by the country, which is likely to position itself as the world’s top gold consumer toppling India. The policy recommends expanding the number of firms involved in gold trade and lightening the restrictions on individual gold buyers.

Currently, gold trade in China is restricted to nine member banks of Shanghai Gold Exchange. The new draft policy issued by The People’s Bank of China would allow the remaining bank members of the exchange as well as gold manufacturers with an annual output exceeding 10 tonnes to apply for gold import and export licenses. The central bank would continue to maintain control on overall gold trade. Further, all transactions must be registered with the exchange.

The draft policy also permits non-resident Chinese national to bring up to 7 troy ounces of gold into the country without paying tax or reporting to customs.

The proposed policy would significantly boost gold imports by China, which is all set to become the world’s top gold consumer. The new policy would augment supplies to the country, which in turn may ease the domestic gold price.

The draft policy is hosted on the Central Bank official website (www.pbc.gov.cn) and is open to comments and suggestions from public for a period of one month. Any recommendation or objection must be submitted before October 29^th.