India Tightens Gold and Silver Imports from UAE to Curb Trade Loopholes
India tightens gold, silver imports from UAE to stop misuse of trade deal; new rules target mislabeling gold as platinum to evade higher duties.
In a move aimed at plugging trade loopholes, India has imposed stricter regulations on imports of gold and silver from the United Arab Emirates (UAE). The tightened rules apply to unwrought, semi-manufactured, and powdered forms of these precious metals and come in the wake of the Union Budget 2025.
Under the revised guidelines, only authorised importers — including nominated agencies, qualified jewellers, and valid tariff rate quota (TRQ) holders — will be permitted to bring in gold and silver from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Background: CEPA and the TRQ System
The CEPA, which came into force in 2022, allows India to import up to 200 metric tonnes of gold annually from the UAE at a reduced import duty, offering a 1% tariff concession through the TRQ mechanism.
However, the government has acted following reports of misuse. Some importers were allegedly declaring nearly pure gold (containing over 99% gold) as platinum alloy to exploit the lower duty benefits extended to platinum under CEPA.
What’s Changing?
To address this issue, the government has introduced new Harmonised System (HS) codes for key commodities, including gold dore, silver dore, and high-purity platinum. The new rules specify that only platinum with 99% or higher purity will qualify for the duty concession. Any deviation from this standard will now face tighter import restrictions — effectively shutting the door on the practice of disguising gold as platinum.
“This measure follows the budget announcement to create distinct HS codes to prevent gold imports from being misclassified,” a government official said. “It ensures better alignment between customs duties and import regulations.”
The move reflects the government’s effort to maintain the integrity of trade agreements while protecting domestic markets from potential revenue losses due to misclassification and underreporting.
