Guidelines on Import of Gold by Tariff Rate Quota (TRQ) Holders Under the India-UAE CEPA
The International Financial Services Centres Authority (IFSCA) has issued new guidelines on the import of gold by Tariff Rate Quota (TRQ) holders under the India-United Arab Emirates Comprehensive Economic Partnership Agreement (India-UAE CEPA). These guidelines have been set to streamline the import process and ensure compliance with the prevailing regulatory framework.
Attention of Authorised Dealer Category – I (AD Category – I) banks is drawn to the A.P. (DIR Series) Circular No.04 dated May 25, 2022. As per this circular, AD Category-I banks have been permitted to remit advance payments on behalf of Qualified Jewellers for a period of eleven days for the import of gold through the India International Bullion Exchange IFSC Ltd (IIBX). This initiative, notified by the IFSCA, aims to facilitate the smooth importation of gold by authorized jewellers through a regulated and transparent process.
In continuation, the attention of AD Category-I banks is further drawn to Notification No.44/2023 dated November 20, 2023, issued by the Directorate General of Foreign Trade (DGFT). According to this notification, valid TRQ holders under the India-UAE CEPA, as notified by the IFSCA, have been permitted to import gold under specific ITC(HS) codes through the IIBX against the Tariff Rate Quota. This step is part of a broader initiative to enhance trade relations between India and the UAE under the CEPA framework.
Accordingly, it has been decided that, subject to the directions mentioned in the A.P. (DIR Series) Circular No.04 dated May 25, 2022, AD Category-I banks may allow valid TRQ holders under the India-UAE CEPA to remit advance payments for a period of eleven days for the import of gold through the IIBX against the TRQ. This decision is aimed at providing a clear and structured pathway for TRQ holders to conduct their transactions, thereby ensuring adherence to the regulatory guidelines.
AD Category-I banks are advised to bring the contents of this circular to the notice of their constituents and customers concerned. It is essential for all stakeholders to be well-informed about these guidelines to facilitate compliance and ensure the smooth functioning of the import process.
The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999). These directions are issued without prejudice to any permissions or approvals that may be required under any other law. It is crucial for AD Category-I banks and other stakeholders to be aware of and comply with all relevant regulations to avoid any legal complications.
In conclusion, these guidelines mark a significant step in facilitating the import of gold by TRQ holders under the India-UAE CEPA. By adhering to these guidelines, stakeholders can ensure a transparent and efficient import process, thereby strengthening the trade relations between India and the UAE.
