Govt tightens Precious Metals Import Rules to Prevent Misuse of India-UAE CEPA

Current Context: The Indian government tightened import rules for gold and silver on May 20, 2025, aiming to prevent misuse of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which provides tariff concessions on precious metals.

Key Changes:

• Restricted Imports: Only nominated agencies, qualified jewellers, and valid Tariff Rate Quota (TRQ) holders can import unwrought, semi-manufactured, and powdered forms of gold and silver.
• New HS Codes: The government introduced dedicated Harmonised System (HS) codes for gold dore, silver dore, and high-purity platinum to prevent misclassification.
• Closing Loopholes: Some importers were misdeclaring nearly pure gold as platinum alloy to exploit lower import duties under CEPA. A new HS code ensures only 99% or higher purity platinum qualifies for duty concessions.
• Annual Gold Import Limit: India allows up to 200 metric tonnes of gold from the UAE annually with a 1% tariff concession under CEPA.

Question:

Q.1 What is the annual gold import limit under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) that qualifies for a 1% tariff concession?
a) 100 metric tonnes
b) 150 metric tonnes
c) 200 metric tonnes
d) 250 metric tonnes

Answer: c) Under CEPA, India permits up to 200 metric tonnes of gold imports from the UAE annually with a 1% tariff concession, to support trade while managing the current account deficit.