Banks Allowed to Import UAE Gold at Discounted Rate

SEATTLE (Scrap Monster): The Indian government has granted permission for banks to import gold at specified quantities from the United Arab Emirates (UAE) at a discounted rate under the existing Free Trade Agreement (FTA) between the two countries. The importers could bring in yellow metal from the UAE by paying 14% duty, instead of the prevailing duty rate of 15%.

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According to government sources, the norms for gold imports from the UAE under the Comprehensive Economic Partnership Agreement (CEPA) have been significantly liberalised. As per the new norms, qualified jewellers as well as banks authorized by the Reserve Bank of India (RBI) are qualified for gold imports.

In order to avail the tariff rate quota, the importers can take 1% duty advantage to import up to 140 tonnes of gold from the UAE during the fiscal year 2023-’24, said the recent notification issued by the Revenue Department. The International Financial Services Centres Authority has already notified the qualified jewellers through the India International Bullion Exchange (IIBX).

It must be noted that the gold import volumes for 2022-’23 were stipulated at 110 tonnes, which would be raised to 200 tonnes over the next five years.