The government, on Thursday, decided to open a fresh window for inviting new applications for gold tariff rate quota (TRQ) under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), that allows 1 per cent import duty concession, to bring it in line with the relaxation in the eligibility criteria for TRQs notified on April 17.

“In view of the revision in the eligibility criteria for gold TRQ under India-UAE CEPA (public notice issued April 17, 2023), in a subsequent EFC (Exim Facilitation Committee) meeting held on April 27, 2023, it has been decided that a fresh window for inviting new applications for Gold TRQ shall be notified and Gold TRQ shall be allocated to all applicants (old and new) as per the revised guidelines,” Santosh Sarangi, Director General of Foreign Trade, said at a press briefing on Thursday.

This follows a letter written by the Indian Bullion and Jewellers Association (IBJA) as reported by bussineline in the issue dated April 27, 2023, to the DGFT, dated April 21, alleging discrepancy in allotment of quota for import of 140 tonnes of gold (under the India-UAE CEPA) to the 78 applicants in a meeting of the DGFT held on March 23, based on reference of government public notice dated April 17.

The DGFT clarified that the minutes of the March 23 meeting had specified that the TRQ allocation was provisional subject to fulfilment of the conditions as specified at the time of application. “No TRQ for import under tariff head 71908 (gold) has been issued on date,” Sarangi said.

India- UAE CEPA

Under the India-UAE CEPA that entered into force on May 1, 2022, India offered UAE a TRQ for gold, which increases from 110 tonne  in 2022-23 to 140 tonne in 2023-24 and gradually to a maximum of 200 tonne over five years, with a 1 per cent import duty (MFN) concession (India applies 15 per cent customs duty on gold). This was done in exchange for UAE offering immediate zero duty market access (against existing duties of 5 per cent) for export of gold jewellery from India. 

“During the 11-month period (2022-23), out of 110 tonne TRQ of gold allocated (under CEPA), only 8.1 tonne was imported. The UAE side had requested for removal of restrictive criteria like allocation of gold TRQ to only jewellery manufacturers and to allow all importers to be eligible for availing it,” the DGFT explained.

Considering the strong trade partnership between India and the UAE, as well as to uphold the spirit of the trade agreement, the matter was considered by the government and the Department of Revenue notification dated March 31, 2023 was issued removing the jewellery manufacturer criteria, he added.

The Public Notice by DGFT aligning with DoR notification allowing all importers to be eligible for availing gold TRQ was issued April 17, 2023 and were uploaded, together with minutes of the EFC meeting of March 23, on the DGFT website, Sarangi said.

The notification opening a fresh window for inviting new applications based on the revised guidelines will be issued shortly and those interested would get about one week’s time to apply, he added.