Ten conditions to purchase used gold

Jewellers from now on have to follow 10 conditions when they buy used gold under the “baggage rule”. The conditions include keeping the xerox copy of the national identity card or passport of the seller, verifying that he/she is the authentic owner, keeping the copy of the tax slip, checking the visa of the country of importation, etc.

The Bangladesh Jewellers’ Association (BAJUS) on Monday in a notification announced the new conditions which are applicable for buying and selling gold inside the country by both jewellers and common buyers.

These conditions have been introduced as an initiative to promote transparency, accountability, discipline and business standards in the country’s jewellery industry and to alert buyers and sellers, BAJUS mentioned in the notification released to new media.

Earlier on September 3, the BAJUS standing committee on anti-smuggling and law enforcement issued a “Gold Purchase Warning Notice” to the organisation’s members across the country. However, problems regarding gold purchases persisted, and the organisation resorted to releasing the latest notification.

The latest set of conditions

When buying used gold, or gold brought under the baggage rule, both parties should keep a xerox of the original copy of the national identity card of the seller. The seller should know about the source of the jewellery sold. The seller should also have a copy of the purchase receipt for the gold ornaments.

When it comes to ornaments, they cannot be purchased from any representative other than the original owner. Then, when purchasing gold brought under baggage rules, both parties should keep a xerox of the original copy of the seller’s passport.

The seller must keep a copy of the visa and a copy of the exit and entry seal of the country from which he/she has bought the gold (Xerox of the original copy should be kept, in this case, no xerox copy of the mentioned document can be accepted from the seller).

The seller would hand over the original copy of the airport declaration document, or tax payment document if subject to tax to the buyer. Identity of the seller should be verified if needed.

In case of purchase of pure gold, whether the name and address are consistent throughout the passport, national identity card and tax slip should also be checked.

In all cases, the purchase receipt should be provided and the copy of the purchase receipt with the signature of the seller should be kept in the buyer’s respective institution for at least 3 (three) years.

It may be noted that the “baggage rule” refers to the fact that gold can be brought into Bangladesh by individual travellers, who carry the metal in their luggage.

A passenger is entitled to carry goods under the baggage rule on arrival from abroad for his personal use or that of his family members. However, if he wishes to sell the gold for financial reasons, it can be purchased, provided that the aforementioned information or documents are supplied.

BAJUS members buy various types of gold according to demand, said the notification. However, in some cases, they face legal complications. Despite several warnings, jewellers are facing legal complications after buying gold under baggage rules. In order to reduce these complications, BAJUS has decided to put into place these strict conditions.

In case the seller fails to provide the aforementioned information or documents, it may be considered that the gold is not legal and jewellers should refrain from buying it, the notification said. It added that in case a jeweller buys gold without proper documentation and faces legal complications, BAJUS would not provide any assistance to the jeweller.