Gold import conditions have been relaxed on UAE’s request: Department of Commerce

New Delhi (Uttam Hindu News): Under the Comprehensive Economic Partnership Agreement (India-UAE CEPA) with the United Arab Emirates, the government has decided to amend the tariff regime on the import of gold from there on the proposal of the authorities there. Rejected the news on Thursday that this decision has been taken to benefit someone and complete transparency has been taken in it.

Under the agreement, earlier only jewelers were allowed to import gold under this quota from the UAE at a concessional duty of one per cent. It has now been opened to other customers as well. Under the agreement, the quota cannot exceed a maximum of 200 tonnes in five years.

Giving clarification on a report published in a section of the media in this regard, the officials of the Directorate General of Foreign Trade (DGFT) said that under the trade agreement with the UAE, the eligibility criteria for the import of gold from there to India will be amended from 17 April 2023. In the meeting of the EFC (Exim Facilitation Committee) held on 27th April, following a Public Notice (based on the notification of DoR (Department of Revenue) issued on ) There will be a new window (arrangement) for inviting fresh applications TRQ of gold will be allotted to all applicants (old and new) as per the revised guidelines.

It has been said on behalf of DGFT, ‘This application process is not going to materially benefit a group or class of applicants.’

The government has clarified that the India-UAE trade agreement came into force on May 1 last year. Under this, the UAE offered duty concessions to India on 99 per cent of the items imported from India by value and 97 per cent by type.

India had offered immediate zero duty market access to gold jewelery from India in exchange for liberalized import of gold under TRQ from UAE to India. (The current duty rate on gold jewelery in the UAE is 5%).

According to the Foreign Trade Department, under the agreement, the quota of gold import from there under TRQ in 2022-23 was 110 tonnes, which has been increased to 140 tonnes in 2023-24 and gradually this quota can go up to a maximum of 200 tonnes in 5 years. Is. Only 1% has been kept as duty concession on gold imported under this quota.

Officials stated that at this rate, attribution of any revenue loss on account of TRQ is illogical.

The DGFT informed that during the 11-month period in 2022-23, only 8.1 tonnes of gold was imported out of the allotted 110 tonnes of TRQ.

Officials said that the UAE side had requested to lift the restriction of restricting gold import quotas under the TRQ to jewelery manufacturers only. His request was that all importers should be allowed to obtain TRQ of gold.

Officials said the matter was considered keeping in view the strong trade partnership between India and UAE as well as to maintain the spirit of the trade agreement with the UAE and the notification dated 01.03. .2023 was released.

DGFT had invited applications for TRQ for FY 2023-24. For this, applications could be made till 28.02.2023 under public notice dated 29.12.2022. 78 applications were received on this and a preliminary meeting of EFC was held on 23rd March and it was decided to allot TRQs provisionally subject to the guidelines/conditions in force at that time.

Officials clarified that till date no TRQ has been issued for imports under tariff heading 7108.

The Public Notice dated 17.04.2023 and the Proceedings Report of the Exim Facilitation Committee (EFC) meeting dated 23.03.2023 were uploaded on the website of DGFT on 17.04.2023 and 18.04.2023 for the benefit and transparency of all stakeholders so that Maximum number of people can take advantage of relaxation in conditions.

The details of the action taken to modify the terms of the notification to allow more broad-based participation in the TRQ process were finalized on 18.04.2023 and uploaded on the same day.