As part of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for FY 2023–2024, the Ministry of Commerce & Industry, Government of India, announced new tariff rate quota (TRQ) applications under tariff head 7108 through May 7th, 2023, in a public notice dated April 28, 2023. The TRQ, which permits lower customs tax rates, will help traders and importers in the UAE and India.
The India-UAE CEPA allows TRQ holders to import gold directly through the India International Bullion Exchange (IIBX) with convenience and transparency, which makes this announcement particularly exciting for the gold business. The TRQ is used effectively and efficiently thanks to the requirement for a 6-month review and the surrender of any quantities that have not been used.
Additionally, the IIBX‘s managing director and CEO, Ashok Gautam, stated, “This is a very important milestone, and we are grateful to the authorities for informing us that ICEGATE will begin operations at GIFT City SEZ on May 10th, 2023. From the standpoint of IIBX, this is a very positive move because it will allow TRQ holders under the India-UAE CEPA to directly import their gold through IIBX in a transparent, democratic manner with the ease of desktop convenience. Launch of ICEGATE at GIFT City SEZ will open up processes for exporters of jewellery to benefit from competitive rates when importing gold. In addition, the ICEGATE will allow exporters of jewellery to also take gold through IIBX at competitive rates.
By giving them the chance to import products at a lower customs duty rate, the new TRQ applications under tariff head 7108 under the India-UAE CEPA for FY 2023–24 will benefit traders and importers in both India and the UAE.