180 Ton Gold Import Quota Under UAE CEPA For FY26 Draws Record Applications

New Delhi, May 20 (KNN) The government allocated a 180-tonne quota for gold imports from the UAE at concessional duty rates under the Comprehensive Economic Partnership Agreement (CEPA) on Monday.

This allocation comes amid claims from a traders' association that approximately 1,400 applications were rejected in the process.

The Directorate General of Foreign Trade (DGFT) received an unprecedented number of applications for the 2025-26 gold import quota, with requests totalling 25 times the available allocation.

Under the CEPA framework, eligible importers can bring in gold at a reduced 5 per cent duty rate from the United Arab Emirates.

Industry sources report that while the concessional import facility typically attracts significant interest, this year saw 2,960 applications—representing a 253 per cent increase compared to the previous year.

According to Surendra Mehta, National Secretary, Indian Bullion and Jewellers Association, authorities applied a requirement for applicants to demonstrate an average annual turnover exceeding Rs 25 crore over the past three financial years when determining allocations.

"DGFT ignored its public notice issued in June 2023, which had dropped the condition of turnover above Rs 25 crore in the past three years," Mehta stated, noting that this resulted in the rejection of 1,400 applications.

He added that officials considered only one application per applicant and prioritised those who had utilised at least 80 per cent of their CEPA quota during the 2024-25 fiscal year.

Scheduled commercial banks, which are permitted to import gold directly as nominated agencies, were not included in the quota allocation process.

Since its implementation in 2022, the concessional import program has grown increasingly popular. However, market sources suggest that many of this year's applications came from individuals with no prior experience in gold trading.

(KNN Bureau)