Gold traders and manufacturers will soon be able to import gold from UAE at a concessional rate, as the government plans to notify a fresh window for the import of up to 140 MT of gold by them from the Middle Eastern region. This facility will be under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Under the CEPA that came into force on May 1 last year, India can import 140 MT gold in 2023-24 at a one per cent duty concession on the applied most-favoured nation (MFN) rate, which is 15 per cent.
The Directorate General of Foreign Trade (DGFT) invited applications for Tariff Rate Quota (TRQ) for 2023-24 with the last date being February 28, 2023. As many as 78 applications were received and a preliminary Exim Facilitation Committee (EFC) meeting was held on March 23, 2023, allocating TRQ provisionally subject to the fulfilment of extant guidelines or conditions.
In view of the revision in the eligibility criteria for Gold TRQ under India-UAE CEPA issued vide public notice dated April 17, 2023, it has been decided that a fresh window for inviting new applications for Gold TRQ would be notified.
The Gold TRQ would be allocated to all applicants both 78 old and new applicants as per the revised guidelines.
As per the earlier notification, 78 applications from manufacturers were received now but the fresh window will be open for all those who have Importer Exporter Code (IEC).
As per the DGFT, the fresh application process is not going to materially benefit a group or section of applicants.
There has been no revenue loss on account of TRQ for Gold, DGFT said, adding Gems and Jewellery export rose by 17 per cent to USD 4,982 million during the June-March period of 2022-23.
Further, it said, the TRQ applications are under scrutiny and TRQ licences have not been issued to any applicant as of date. Hence, any apprehension of favouring 78 jewellers is unfounded and is not based on truth.
As per the CEPA, 110 MT of gold import was allowed at a concessional rate. Out of that, only 8.1 MT was imported.
(With Inputs From PTI)
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