India has imposed new restrictions on the import of gold and silver from the United Arab Emirates (UAE) under the framework of the Comprehensive Economic Partnership Agreement (CEPA), according to Indian media reports.
The tightened regulations apply to unwrought, semi-manufactured, and powdered forms of both precious metals. Moving forward, only designated agencies, qualified jewellers, and holders of valid tariff rate quotas under CEPA will be permitted to import these metals.
The move comes in response to recent instances where importers allegedly misused the CEPA framework by misdeclaring shipments. Some traders reportedly passed off nearly pure gold — marked as 99% — as platinum alloy to take advantage of lower import duties. Authorities say this prompted the need for a more stringent regulatory approach.
To address this, customs authorities have introduced new and distinct Harmonised System (HS) tariff codes to better differentiate between various metal imports. These include separate codes for platinum containing 99% or more pure platinum, as well as gold dore and silver dore, thereby reducing the scope for manipulation.
The Indian government’s decision underscores an effort to safeguard trade transparency and prevent revenue loss from tariff evasion while maintaining the spirit of the India-UAE CEPA agreement, which came into effect in 2022.
Since the signing of the CEPA, bilateral trade between India and the UAE has witnessed a significant boost. Trade volumes rose from $20.88 billion in 2022 to $28.15 billion in 2024 — an increase of approximately 35%. Gold and silver have historically been major components of India’s imports from the UAE, making them a key area of focus for regulatory oversight.
The Ministry of Commerce and Industry has yet to release an official statement, but the restrictions are expected to be implemented immediately to curb any misuse of the trade agreement and ensure compliance with its intended tariff structures.
Industry experts note that while the measures may temporarily tighten the import process, they are likely to foster long-term accountability and more transparent trade practices between the two economic partners.
