Mumbai, Nov 21 (PTI) Gems and jewellery exporters on Tuesday welcomed the government's move to allow valid licence holders to import specified quantities of gold at concessional customs duty from the UAE under the free trade agreement through bullion exchange IIBX.
"We welcome the DGFT's amendment in the import policy of gold between India and UAE, which will facilitate the trade of gold between the two countries and benefit the Indian jewellery industry," Gem Jewellery Export Promotion Council (GJEPC) Chairman Vipul Shah told PTI.
The provision of importing gold through IIBX (India International Bullion Exchange) against the TRQ (tariff rate quota) and obtaining physical delivery through IFSCA-registered (International Financial Services Centres Authority) vaults in SEZs will reduce the transaction costs and enhance the ease of doing business, he added.
"This will also help in creating a vibrant gold market in India and boost the exports of value-added jewellery products. We appreciate the efforts of the government and the IFSCA in implementing this progressive policy measure," Shah noted.
On Monday, the Directorate General of Foreign Trade (DGFT), in a notification, said that valid India UAE TRQ holders as notified by IFSCA can import gold through IIBX against the TRQ and can obtain physical delivery of the same through IFSCA-registered vaults located in SEZs as per the guidelines prescribed by the IFSCA.
Former GJEPC chairman and Kama Jewellery managing director Colin Shah said it is a welcome step for manufacturers with revenue of below Rs 25 crore and TRQ licence holders.
"This will benefit them from importing gold from the UAE under the FTA and empower them to export finished products to international markets. However, the details on the SOPs (standard operating procedures) are still awaited," he stated.
With the ongoing geo-political situation, it is important to keep a check on demand trajectory to avoid pile-up of the inventory, he noted.
The India-UAE free trade agreement, which came into force in May 2022, provides one per cent duty concessions to domestic importers on a specified quantity of gold under TRQ provisions of the pact.
DGFT provides TRQ certificates to companies for imports and they are also notified by IFSCA. PTI SM BAL BAL