New rules for gold imports announced by China

Industry News | | MIC Customs Solutions |

China is introducing new rules with the aim of facilitating the importing of gold.

Countries selling gold to China are to be assisted by the introduction of new rules that aim to streamline the current process.

The People's Bank of China has confirmed that companies engaging in frequent importing and exporting of gold and gold products will soon be able to apply for a single permit that can be used to cover as many as 12 shipments.

Taking effect on June 1st, the regulatory change will apply to Beijing, Shanghai, Guangzhou, Qingdao, Nanjing and Shenzhen - several of the country's most important destinations for trade.

It comes after the country recently introduced a twice-daily gold price fixing in Shanghai in an attempt to establish a regional benchmark and bolster its global influence.

The move also coincides with a recent rise in gold consumption within the Chinese market, with growing consumer income and economic prosperity leading to an increase in demand for luxury items such as jewellery, bars and coins.

Countries such as Switzerland and Hong Kong are becoming increasingly relied upon to provide shipments of the metal due to demand outstripping local supply. Gold prices have risen around 20 per cent this year on the Shanghai Gold Exchange, which is around the same speed as the increase in global rates.

Jiang Shu, chief analyst at Shandong Gold Financial Holdings Capital Management, told Bloomberg: "The move will reduce paperwork and speed up gold imports, because previously importers had to apply for an overall import quota from the central bank and then report and register every single shipment."

China is currently exploring a number of avenues to stimulate its global trade performance, following a slowdown in its economic growth over the last few months that have had a significant impact on global GDP.