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Time of India
24-05-2025
- Business
- Time of India
Ahmedabad jewellers seek transparency in gold TRQ allocation under India-UAE Comprehensive Economic Partnership Agreement
1 2 3 4 Ahmedabad: Jewellers in Ahmedabad raised concerns over the opaque allocation process for gold import quotas under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for FY 2025–26. In a formal representation to the Directorate General of Foreign Trade (DGFT), the Jewellers' Association of Ahmedabad (JAA) urged the govt to publish clear eligibility criteria for tariff rate quota (TRQ) allotment and scrap the Rs 25 crore turnover threshold, which they say disadvantages smaller jewellers and distorts market competition. Under the current TRQ application process, jewellers, bullion traders, and manufacturers were required to submit past turnover figures and pay a non-refundable Rs 1 lakh fee. However, many applicants said they were unaware of any turnover threshold at the time of applying in Feb. "A turnover-based eligibility rule which was rescinded in 2023 was quietly reinstated, restricting access for smaller jewellers and bullion traders," said JAA president Jigar Soni. "This not only runs contrary to the spirit of CEPA, which is to promote wider market participation, but also creates an uneven playing field in favour of larger corporates." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Transforme sua disposição com esta solução natural recomendada por especialistas AlwaysFit Undo Several applicants said they had no knowledge of the Rs 25 crore qualifying bar until results were announced. "I submitted a complete TRQ application, paid the Rs 1 lakh fee, but had no idea about any turnover requirement," said Hardik Choksi, a jeweller from Manek Chowk in Ahmedabad. "This essentially means small businesses like ours are not even in the running, and the benefits of the duty concession will be concentrated among big traders. We will end up buying gold at higher prices from them, which affects our margins and market standing." The issue gained further traction after the DGFT, in a meeting on April 29, disclosed that it received over 3,000 TRQ applications—a 253% rise over the previous year, but only about 1,400 were approved. Officials reportedly prioritised firms with "considerable business size" and "manufacturing capacity", a move that sparked calls for greater transparency. "The turnover clause was officially scrapped last year," said Bhavin Patalia, a chartered accountant who filed over 100 TRQ applications. "If the govt planned to bring it back, applicants should have been clearly informed." Box: CEPA and the TRQ system The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, allows for duty concessions on select goods to enhance bilateral trade. Under this, India permits the import of up to 200 metric tonnes of gold annually from the UAE at a 1% duty discount — lower than the standard import duty — through a tariff rate auota (TRQ) mechanism. Jewellers, bullion traders, and manufacturers must apply to the Directorate General of Foreign Trade (DGFT) for TRQ certificates to access this concession. The quota is distributed based on eligibility criteria, which applicants say lacked transparency this year. Get the latest lifestyle updates on Times of India, along with Brother's Day wishes , messages and quotes !
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Business Standard
20-05-2025
- Business
- Business Standard
Govt tightens gold import rules, plugs Dubai route misuse under CEPA
The government has tightened import rules for gold and silver, restricting their entry into India to only nominated agencies, qualified jewellers, and valid TRQ (Tariff Rate Quota) holders under the India–UAE Comprehensive Economic Partnership Agreement (CEPA), the Economic Times reported. The restrictions apply to unwrought, semi-manufactured, and powdered forms of gold and silver. Backdoor gold route via Dubai closed The move follows reports that some importers had exploited ambiguities in customs classifications to bring in nearly pure gold from Dubai under the guise of platinum alloy. By misdeclaring gold as platinum, they were able to access lower import duties offered under CEPA. "This measure follows the Budget announcement to create separate HS codes to ensure that gold imports don't happen in the name of platinum," an official was quoted as saying. HS code reform and CEPA quotas The Budget for FY26 proposed the creation of dedicated HS codes for precious metals like gold dore, silver dore, and platinum. The goal is to better regulate and monitor imports while aligning duty structures. Under CEPA, India allows the import of up to 200 metric tonnes of gold annually from the UAE at a reduced tariff — with a 1 per cent concession available via the TRQ mechanism. Trade council urges diversification In February, the Gem and Jewellery Export Promotion Council (GJEPC) urged the Commerce Ministry to partially shift gold imports from Switzerland to the US to help correct India's trade imbalance. Switzerland currently supplies 35 per cent of India's gold bars. The council proposed a similar shift in silver bar imports from the UK — which supplies 41.54 per cent — to the US. In 2024, India exported $11.58 billion worth of gems and jewellery to the US while importing $5.31 billion, creating a $6.27 billion surplus. The US accounted for 20.28 per cent of India's exports in this category and 12.99 per cent of overall trade. The GJEPC proposal comes amid concerns over potential tariff pressures from US President Donald Trump, who has publicly called out trade imbalances. The council has also proposed lower domestic import duties to offset possible US retaliation.
