Soon India will open a new window for inviting new applications for FY24 towards in-porting hold from the United Arab Emirates ( UAE ) through an import quota system, a tariff rate quota ( TRQ) – about the trade agreement between both the countries.
According to DGFT Santosh Sarangi, Gold TRQ will be allocated to old and new applicants per the modified, more superficial eligibility norms and lesser compliance burden for Indian importers.
This enabled ‘ broad-based participation ‘ in the TRQ process by making all imports rather than restricting them to manufacturing importers. Besides, there were rare takers of Gold from the UAE in the previous financial year.
During May- March ( 2022-23), out of 110 MT’s TRQ of Gold allocated, only 8.1 was imported.
After that, UAE requested India to remove
restrictive criteria include distributing Gold to only jewelry manufacturers and allowing all importers to be eligible for obtaining Gold TRQ.
Sarangi told reporters, “Considering the setting trade association between India and UAE and upholding the spirit of the Trade Agreement, the matter was considered by the government, and the DOR (Department of Revenue)Notification dated 31-03-2023 was issued removing the Jewelry manufacturing criteria”.
After Sarangi’s comments come in the backdrop of a media report stating that the Indian Bullion and Jewellers Association (IBJA)wants the Directorate General of Foreign Trade ( DGFT) to dump the particular gold import entirely from the UAE trade deal allotted to 78 applicants this year, and after the calling for the fresh applicants from eligible players. Gold importers said that it was felt that a pre-arranged gold import quota was accomplished.
Government officials state that per the modified eligibility criteria for gold TRQ under the trade deal, all applicants will be evaluated, but the 78 old applicants won’t have to apply.
Under the trade deal implemented in May 2022, UAE offered immediate zero duty market access for the export of Gold Jewellery from India in exchange for a Tariff Raye Quota for Gold, which increased from 110 MTs in FY 23 140MTs in FY24 and gradually went a maximum of 200 MT for over five years, with only 1 percent duty concession.
