TestCloud
Prep • Practice • Perform
Log In

Government Strengthens Precious Metals Import Norms to Curb CEPA Misuse with UAE.

National | Dated: 22 May 2025

On May 19, 2025, the Government of India (GoI) revised import rules for gold and silver, restricting their import to nominated agencies, qualified jewellers, and valid Tariff Rate Quota (TRQ) holders under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) with immediate effect.

🎯 Key Highlights:

  • - The revised rules were issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry (MoCI) to curb misuse and ensure more regulated trade.
  • - The new norms allow the import of unwrought, semi-manufactured, and powdered gold, but only under specific conditions, particularly through the India International Bullion Exchange (IIBX) or by licensed refineries under the Actual User condition.
  • - As per CEPA, India allows up to 200 Metric Tonnes (MT) of gold to be imported annually from the UAE at a 1% concessional duty under the TRQ mechanism.

💡 Other Important Facts:

  • (i) Imports of gold with 99.5% or higher purity are now restricted and permitted only through approved channels—nominated agencies, qualified jewellers via IIBX, and CEPA TRQ holders.
  • (ii) To prevent tax evasion, the government introduced specific Harmonized System (HS) codes for platinum, gold dore, and silver dore in the Union Budget 2025. This follows misuse where 99% gold was falsely declared as platinum alloy to gain tax concessions under the World Customs Organization (WCO) rule.
  • (iii) Silver bars with 99.5% or higher purity remain freely importable under the HS code, but are still subject to regulations by the Reserve Bank of India (RBI).

📚 Test Your Knowledge:

India recently revised its precious metals import rules to prevent misuse of the CEPA agreement signed with which country?

Correct Answer: UAE

🚀 Quick Recap:

About Directorate General of Foreign Trade (DGFT)

  • Director General : Santosh Kumar Sarangi
  • Headquarters : New Delhi