India has implemented stricter regulations on gold and silver imports under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) to prevent misuse of trade provisions.
Authorized Importers Only: Imports of unwrought, semi-manufactured, and powdered forms of gold and silver from the UAE are now restricted to nominated agencies, qualified jewellers, and holders of valid Tariff Rate Quotas (TRQs) under CEPA.
Misuse of Platinum Classification: Some importers were reportedly misclassifying nearly pure gold as platinum alloys to benefit from lower import duties under CEPA. To address this, the government has introduced a specific Harmonized System (HS) code for platinum with 99% or higher purity. Only such imports will now qualify for duty benefits under CEPA.
HS Code Reforms: The Directorate General of Foreign Trade (DGFT) has updated import policies to align with customs tariff changes introduced in Budget 2025. This includes the creation of dedicated HS codes for precious metals like gold dore, silver dore, and platinum, aiming to enhance transparency and prevent trade agreement misuse.
HS Code (Harmonized System Code) is a standardized numerical method used internationally to classify traded products. It is used in customs procedures, international trade documentation, tariff determination, and statistical reporting.
TRQ Mechanism: Under CEPA, India allows the import of up to 200 metric tonnes of gold annually from the UAE with a 1% tariff concession through the TRQ mechanism. These imports are subject to strict monitoring and can only be carried out by eligible entities.
Tariff Rate Quota (TRQ) is a trade policy tool that allows a specified quantity of a product to be imported at a lower tariff rate, while quantities above that threshold are subject to higher tariffs. Example: India allows import of 100,000 tonnes of maize at 15% tariff (TRQ). Any import beyond 100,000 tonnes is charged 60% tariff.
These measures are part of India's efforts to strengthen regulations around precious metal imports and ensure that the benefits of trade agreements are not exploited through fraudulent practices.
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