India Imposes Strict Restrictions on Gold Imports from Dubai

The Government of India has implemented stringent restrictions on certain categories of gold and silver imported from the United Arab Emirates (UAE). The new regulations apply to raw, semi-manufactured, and powder forms of gold and silver. The primary objective behind these measures is reportedly to prevent misuse of the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

According to the government, some importers were allegedly exploiting the concessions available under the CEPA by falsely declaring high-purity gold as platinum alloy to benefit from lower import duties. To curb such fraudulent practices, the authorities have now imposed these new restrictions.

As part of the 2025 Budget announcement, the government had earlier declared its intention to introduce new Harmonized System (HS) codes for key items such as gold dore, silver dore, and high-purity platinum. The latest restrictions have been enforced in line with these announcements.

Under the new rules, only nominated agencies, qualified jewellers, and holders of valid Tariff Rate Quota (TRQ) licenses under the CEPA will be permitted to import gold and silver in the specified forms from the UAE. India has agreed to allow the import of up to 200 metric tonnes of gold annually from the UAE at a concessional duty rate of 1% under the TRQ framework of the CEPA.

However, there have been allegations that certain importers have been declaring gold with nearly 99% purity as platinum alloy to benefit from reduced import tariffs under the CEPA. In response, the government has introduced a separate HS code specifically for imports that contain 99% or more pure platinum. Only imports falling under this new category will be eligible for tariff concessions. Imports of other platinum alloys will now face restrictions, effectively closing loopholes that previously allowed gold to be imported under the guise of platinum.