The government on Monday said that Indian jewellers having a valid license to import a specified quantity of gold at concessional customs duty from the UAE, under the free trade agreement, can import it through the India International Bullion Exchange (IIBX).
In a notification, the Directorate General of Foreign Trade (DGFT) said that those companies can obtain the physical delivery of the consignment through International Financial Services Centres Authority (IFSCA)-registered vaults located in special economic zones.
The India-UAE comprehensive economic partnership agreement came into force in May 2022 and provides 1% duty concession to domestic importers on a specified quantity of gold under tariff rate quota (TRQ) provisions of the pact.
“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 DGFT said.
UAE is one of the major suppliers of gold to India after Switzerland. New Delhi has agreed to concessional import duties on gold imports of up to 200 tonnes per year under the trade agreement. India levies a 15% import duty on gold in general.
The government retained the condition that gold dore can be imported by refineries against an import license with actual user condition.
Import is also allowed through nominated agencies of the Reserve Bank of India, DGFT and IFSCA.
Source Name : Economic Times