From DGFT, from June 1st, 2017 the government in a notice has released a mandate and by which the BIS certified refineries only import raw gold. This will impact on the gold supply of 20% which would be around 150-250 tonnes annually and also depend on what price the spot gold will trade on.
To get accreditation the non-BIS accredited refineries will now have to decide as till now very few refineries have been certified. The other way that these refiners may get through is that they could get accredited refiners as a middle agent to import for them for a premium price, said by experts.
On an average the country imports 700-800 tonnes of gold which also includes the dore gold and the refined gold bars. On refined gold the center has kept 10% import duty but if imported from excise free zones now on raw gold only 8.75% duty is charged. It indicates that after removing the expenses the importers getting raw gold will get a profit margin of more than 1%.