India Liberalises Gold Imports Norms Under CEPA With UAE

New Delhi, Dec 27 (KNN) The central government has allowed Indian banks to import gold at concessional duty from the United Arab Emirates (UAE). 

India has permitted Indian banks to import specified annual quantity under the free trade agreement between the two countries.

The government has significantly relaxed its norms for gold imports from the UAE under the Comprehensive Economic Partnership Agreement (CEPA) to include both qualified jewellers and banks authorised by the Reserve Bank of India told HT, requesting anonymity.

“Indian importers can take 1 per cent duty advantage to import up to 140 tonnes of gold from the UAE in 2023-24. A recent notification issued by the revenue department on Friday specified eligibility criteria to avail the tariff rate quota,” a government official said. 

Qualified jewellers were notified by the International Financial Services Centres Authority through the India International Bullion Exchange.

Under the trade pact, the UAE offered India immediate zero duty market access for export of gold jewellery (the import duty was 5 per cent) in exchange for tariff rate quota for gold, which was fixed at 110 tonnes in 2022-23 and 140 tonnes in 2023-24. It would be gradually raised to 200 tonnes over five years. 

Effectively, Indian importers can import UAE gold by paying 14 per cent duty, instead of prevalent rate of 15 per cent, said the second person, a trade expert.

(KNN Bureau)