UAE gold trade gets big fillip as India opens special window to import 140t at lower duty

UAE gold trade gets big fillip as India opens special window to import 140t at lower duty

New Delhi announced recently that the gold tariff rate quota (TRQ) will be allocated to old and new applicants

As per the Cepa agreement, which has been in force since May 1, 2022, India can import 140 tonnes in 2023-24 at a one per cent duty concession. - KT file

Published: Thu 4 May 2023, 8:38 PM

The decision by the Government of India to open a fresh window for the import of 140 tonnes of gold from the UAE by manufacturers and traders of the yellow metal at a concessional rate under the India-UAE Comprehensive Economic Partnership Agreement (Cepa) during the financial year 2023-24 is expected to give a significant fillip to Dubai gold trade.

New Delhi announced recently that the gold tariff rate quota (TRQ) will be allocated to old and new applicants as per the revised simpler eligibility norms and lesser compliance burden for Indian importers.

As per the Cepa agreement, which has been in force since May 1, 2022, India can import 140 tonnes in 2023-24 at a one per cent duty concession on the applied Most Favoured Nation rate, which is 15 per cent.

As per the bilateral trade pact, there is no revenue loss on account of imports under the