India-UAE Gold Trade: India can soon import 1400 million tonnes of gold from UAE on concessional duty. These imports will be done under bilateral trade agreement. India will open a new window for the import of 140 million tonnes of gold through a quota system, called Tariff Rate Quota (TRQ) in trade parlance, and imports will be allowed under this.
Director General of Foreign Trade Santosh Sarangi said on Thursday that gold TRQs will be allocated to old and new applicants as per the India-UAE Comprehensive Economic Partnership Agreement (CEPA) revised simplified eligibility criteria and reduced compliance burden for Indian importers. According to DGFT, the current apply process is not going to physically benefit a group or class of applicants.
no revenue loss
On the other hand, officials said that manufacturers and jewelers will be allowed to use this window. There will be no revenue loss due to imports under the quota system after the change in its eligibility criteria, he added.
Import can be done with only 1 percent concession
According to the CEPA, India can import 140 million tonnes from UAE in 2023-24 with 1 per cent duty concession against the effective customs duty or Most Favored Nation rate, which is 15 per cent.
Last year, 110 metric tonnes of gold was allowed to be imported.
Let us tell you that last year, 110 metric tonnes of gold was allowed to be imported at a concessional rate. Out of this, only 81 lakh tonnes was imported. According to ET, the UAE had requested to remove restrictive norms such as allocation of TRQ of gold only to jewelery manufacturers and allow all importers to be eligible to avail the quota. Government will now issue a new window system for inviting fresh applications for Gold TRQ which will be open to all those who have Importer Exporter Code.
