Govt fixes gold import data after confusion over count

Govt fixes gold import data after confusion over count

Govt fixes gold import data after confusion over count ByRajeev Jayaswal Jan 10, 2025 04:50 AM IST Share Via Copy Link The double counting happened because the migration of data recording system from NSDL to the Indian Customs Electronic Data Interchange Gateway was not finished

The Union government has found and resolved data discrepancies over gold imports, reducing the trade deficit in November from the previous $37.8 billion to about $32.8 billion, people familiar with the matter said on condition of anonymity.

The error arose from issues related to interoperability between two data collection systems recording the same data — in this case gold imports — the first counting shipments of gold to special economic zones and again capturing supplies to domestic tariff areas. (Representational image)

The error arose from issues related to interoperability between two data collection systems recording the same data -- in this case gold imports -- the first counting shipments of gold to special economic zones (SEZs) and again capturing supplies to domestic tariff areas (DTAs), one of the people, a senior official explained. He added that the next release of trade data in mid-January would revise the import numbers accordingly.

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The double counting of gold imports happened because the migration of data recording system from NSDL to the Indian Customs Electronic Data Interchange Gateway (ICEGATE) was not entirely finished, this person said. Hence, there was some overlap, which the two software systems could not reconcile.

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HT learns that the migration may not have happened in all locations , a problem compounded by some importers continuing to file returns through the NSDL system. On June 22, 2024, the SEZ division of the commerce ministry did ask all SEZ administrators to ensure that they filed trade data only in the ICEGATE system from July 1, 2024, said a second official. HT has reviewed the copy of the letter directing this.

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The government has tasked a commerce ministry arm, the Directorate General of Commercial Intelligence and Statistics (DGCIS) and ICEGATE’s DG (systems) to create a seamless data recording system retrospectively and report to the ministry by the end of February, the first official said. Established in 2007, ICEGATE is the national portal of Indian Customs. It is managed by the Central Board of Indirect Taxes and Customs (CBIC), an arm of the finance ministry and provides e-filing services to traders, cargo carriers and other trading partners electronically.

The first official said the revised figure did not impact the surge in gold imports much, but reduced the trade deficit in November. Imports of gold have continued to surge after reduction of customs duty to 6% from 15% in the last budget. “While corrected data saw gold imports surging 2.9 times (year-on-year in November this year), previous data showed a five-time spike,” he said. After reconciliation, the trade deficit for November is expected to be revised downwards from $37.8 billion to about $32.8 billion, he said. The examination of the data was prompted by an unusual surge in the imports of the precious metal in November 2024, leading to a record imports of $69.95 billion and the highest ever trade deficit of $37.84 billion.

Trade experts, who did not wish to be named, said that the development is unfortunate and will cast doubts on the entire trade data. “The government must rectify the system and restore data purity, which is crucial for decision-making,” one of them added