Q. the following statements:
1.Unrefined gold is not a pure gold.
2.Under a zero-duty policy, India imports unrefined gold from Least Developed Countries (LDCs) that are exempt from any import duties.
3.The Reserve Bank of India regulates and monitors zero-duty unrefined gold imports in India.
How many of the statements given above are correct?
Explanation –
Statements 1 and 2 are correct. Unrefined gold, also known as gold dore, is a semi-pure alloy of gold and other precious metals like silver and copper, obtained from mining and other sources. It usually contains between 50% to 95% of gold, and the remainder is made up of other metals. Therefore, unrefined gold is not pure gold and requires further processing to reach purity levels suitable for commercial use. India has a zero-duty policy for imports of unrefined gold from Least Developed Countries (LDCs) as part of the Duty-Free Tariff Preference (DFTP) scheme. However, it’s important to note that the exemption from import duties only applies to countries that are designated as LDCs by the United Nations. For gold imported from non-LDCs, standard import duties apply.
Statement 3 is incorrect. The authority responsible for regulating and monitoring zero-duty unrefined gold imports in India is the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry. The DGFT formulates and implements India’s foreign trade policy, including the Duty-Free Tariff Preference (DFTP) scheme, which allows duty-free imports of unrefined gold from Least Developed Countries (LDCs).
Source: Forum IAS
