The government has freed up gold imports at concessional tariffs from the United Arab Emirates (UAE) to all importers, rather than just manufacturers and jewellers, in response to the country’s submission that such restrictions were posing a trade barrier even after a bilateral free trade pact.
Director General of Foreign Trade Santosh Sarangi said on Thursday that easing these restrictions was already under discussion with the Department of Revenue when an export facilitation committee met to consider applicants for availing the 140 metric tonnes of gold import quota available for this year, on March 23.
With the new import norms notified on March 31, a public notice was issued on April 17 and the minutes of the March meeting were only finalised on April 18 “as it as felt prudent to incorporate necessary changes… in the interest of greater transparency”.
The provisional allocations made during that meeting to 78 applicants will now stand scrapped and will be reconsidered along with other bids, for which the process is expected to be opened on Friday, officials said. “Any apprehension that 78 jewellers have been favoured is unfounded,” he said.
Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) that kicked in last May, UAE has allowed duty-free imports of Indian gems and jewellery and was granted a 1% import duty concession on their gold exports to India.
Last year, of the 110 metric tonnes of gold imports from UAE permitted under the CEPA, just about eight tonnes were imported, while India’s gems and jewellery exports to UAE in the ten months of June 2022 to March 2023 were 17% higher than a year ago. The cap on such imports will be raised every year, with an ultimate cap of 200 metric tonnes under the CEPA.
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