China looks to streamline cross-border gold trade

The Dollar Business Bureau

China will soon test a new policy that aims to simplify cross-border shipments of gold trade, thereby speeding up import and export of yellow-metal a lot easier in the country.

A joint statement issued by the People's Bank of China (PBOC) and the General Administration of Customs on Wednesday said the new policy will be tested from June 1.
The new policy will be tested in the major Chinese cities such as Beijing, Guangzhou, Nanjing, Qingdao, Shanghai and Shenzhen.

The policy will enable gold companies to clear customs up to 12 times with one permit, according to the statement issued by the People’s Bank of China.

Earlier, gold companies had to apply for a separate permit for each import or export consignment order. The new measure is intended to simplify the approval procedures and improve China’s overall gold trade environment.

China continues to be one of the world's biggest consumers of gold. The country’s total gold consumption amounted to 985.9 tonnes last year, while gold output remained at 450.05 tonnes in 2015.

China has been very active IN promoting its gold industry across the globe. With the latest decision, the central bank is envisaged to improve gold shipments as well as internationalise Yuan through promotion of more cross-border trading of the metal.