India has instituted new regulations regarding the import of precious metals such as gold and silver from the UAE. These changes specify that these metals can now only be imported through designated agencies, approved jewelers, and registered tariff rate quota (TRQ) holders within the framework of the India-UAE comprehensive economic partnership agreement (CEPA).
As part of the CEPA, India had previously agreed to allow the import of up to 200 metric tonnes of gold each year from the UAE with a 1% tariff concession under the TRQ system.
Reasons for the New Restrictions
This decision comes in response to the Budget 2025 proposal to introduce new Harmonised System (HS) codes for crucial products, including gold dore, silver dore, and high-purity platinum. The intention is to close gaps in the existing regulations that some importers had been exploiting. Reports suggested that these individuals were labeling nearly pure gold, with gold content of 99%, as platinum alloy in order to benefit from lower import duties permitted under the CEPA.
To combat this issue, the government has created a specific HS code for platinum with a purity of 99% or greater. Only imports classified under this new code will be eligible for duty concessions, while other platinum compositions will face stricter limitations, effectively curtailing the practice of importing gold disguised as platinum.
“This initiative follows the budget announcement aimed at establishing distinct HS codes to prevent gold imports from being misrepresented as platinum,” stated an official. This change also ensures that customs duties and import regulations are harmonized.