Gold in France
Yesterday I got an offer or actually a request. I was asked if I have a buyer for gold in France. A lot of bells started to ring in my head. Instead of my usual answer “NO” I said yes. I have actually a partner in France buying gold delivered CIF. So why not see what that was all about.
After a few Skype messages it was revealed that the gold was not “in” France but at the airport’s customs.
I requested the FCO with the necessary export documents. This to avoid the normal illegal export procedures of having a “diplomat” doing the export. Illegal as gold is not a personal belonging as per Geneva conventions.
I never got the export documents or the company documents. What I got was an FCO issued by a company from Mali. Mali and France make sense being closely interrelated.
What did not make sense was the asking price, 25000 USD/kg. We have a market price nowadays above 43000 USD/kg bullion. The market price for the gold in Mali is well above 30 000 USD/kg and then based on FOB. At least that is what the “market” says that the price is.
Now as we know that the gold had not passed the customs then it had not yet been imported. At least in Sweden the customs is paid by the importer. Well actually there is no customs duties on gold more than a VAT charge on non-investment gold. The VAT rules are different in different member states within the EU. To get the paid VAT refunded you have to proof that the VAT is paid.
Now the FCO stated the following Quote Buyer have to pay on arrival export Taxes cost,$26000, cash to Seller Rep, for him to settled costumes at the arrival Europe airport, so that he can take out the consignment move ON. Unquote. A request that can in itself contain several different interpretions.
If there is any need to pay for the import to the seller. That the importer has to do it himself. That is actually the only way to it if it later shows that the gold was something else. With 26000 USD paid to the seller’s representative you can not claim any refund from the customs for the VAT paid.
Think twice when you are offered a flying fried sparrow.
So today’s music is Think Twice.
