UAE Gains Edge in Gold Trade After India Duty Revision!

India’s decision to increase customs duty on gold imports from 6% to 15% may significantly boost gold inflows from Dubai, according to the Global Trade Research Initiative (GTRI). The think tank stated that the India-UAE Comprehensive Economic Partnership Agreement (CEPA) allows gold imports from the UAE under a tariff-rate quota at a duty that is 1% lower than the standard rate. While the general import duty now stands at 15%, gold imported from Dubai under the quota attracts only 14% duty, making the UAE route more attractive for traders.

GTRI also noted that silver imports from Dubai could surge sharply due to a larger duty gap. While the standard customs duty on silver is 15%, imports from the UAE currently attract only 7% duty under the agreement. The organization estimates that gold imports from Dubai could rise from 120 tonnes in 2022 to nearly 200 tonnes by 2027. It also urged the Finance Ministry to simplify customs notifications, saying the current tax structure has become too complicated for traders and importers to understand clearly.