Gems and jewellery exporters on Nov 21, welcomed the government’s move to allow valid licence holders to import specified quantities of gold at concessional customs duty from the UAE under the free trade agreement through bullion exchange IIBX.
The provision of importing gold through IIBX (India International Bullion Exchange) against the TRQ (tariff rate quota) and obtaining physical delivery through IFSCA-registered (International Financial Services Centres Authority) vaults in SEZs will reduce the transaction costs and enhance the ease of doing business. This will also help in creating a vibrant gold market in India and boost the exports of value-added jewellery products.
On Nov 20, the Directorate General of Foreign Trade (DGFT), in a notification, said that valid India UAE TRQ holders as notified by IFSCA can import gold through IIBX against the TRQ and can obtain physical delivery of the same through IFSCA-registered vaults located in SEZs as per the guidelines prescribed by the IFSCA.
The India-UAE free trade agreement, which came into force in May 2022, provides one per cent duty concessions to domestic importers on a specified quantity of gold under TRQ provisions of the pact.
DGFT provides TRQ certificates to companies for imports and they are also notified by IFSCA.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished