Gemstone and jewelry exports increased 17% to $4,982 million during the June-March 2022-23 period. (Representative image/AP)
Under the India-UAE CEPA, India can import 140 MT of gold in 2023-24 with a duty concession of 1% on the applied most favored nation rate of 15%.
Gold traders and manufacturers will soon be able to import gold from the UAE at a preferential rate as the government plans to notify a new window for the import of up to 140 MT of gold by them from the region from the Middle-East. This facility will fall under the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE.
Under the CEPA which came into force on May 1 last year, India can import 140 MT of gold in 2023-24 with a duty concession of 1% on the most favored nation rate ( MFN) applied, which is 15%.
The Directorate General of Foreign Trade (DGFT) has launched a call for applications for the Tariff Quota (TC) for 2023-24, the last date being February 28, 2023. No less than 78 applications were received and a preliminary meeting of the Committee Exim Facilitation (EFC) took place. held on March 23, 2023, provisionally allocating TRQs subject to compliance with existing guidelines or conditions.
In view of the revised eligibility criteria for Gold TRQ under the India-UAE CEPA published in the Public Notice of April 17, 2023, it has been decided that a new window to invite new applications tariff rate quota on gold would be notified.
The TRQ for gold would be allocated to all applicants, 78 old and new applicants, according to the revised guidelines.
As per the previous notification, 78 requests from manufacturers were received, but the new window will be open to anyone with an Importer-Exporter (IEC) code.
According to the DGFT, the new application process will not materially benefit any group or section of applicants.
There was no revenue loss due to the gold tariff quota, DGFT said, adding that exports of gemstones and jewelry rose 17% to $4,982 million during the period June-March 2022-23.
In addition, he added, TRQ applications are under review and TRQ licenses have not been issued to any applicants so far. Therefore, any apprehension of favoring 78 jewelers is groundless and not based on truth.
In accordance with CEPA, 110 MT of gold imports were authorized at a concessional rate. Of this number, only 8.1 MT were imported.
(With PTI entries)
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