Officials said there is no revenue loss on account of imports under the quota system after changes were made to the eligibility norms that allowed manufacturers and jewellers to use this window.
As part of India-UAE Comprehensive Economic Partnership Agreement (CEPA), gold TRQ will be allocated to old and new applicants as per the revised simpler eligibility norms and lesser compliance burden for Indian importers, Director General of Foreign Trade Santosh Sarangi said on Thursday.
The fresh application process is not going to materially benefit a group or section of applicants, according to the DGFT.
Easing these restrictions was already under discussion with the Department of Revenue when an exim facilitation committee met to consider applicants for availing the 140 MT of gold import quota available for this year, on March 23. 78 applications were received.
TRQ applications are under scrutiny and TRQ licences have not been issued to any applicant as on date.
“Hence, any apprehension of favouring 78 jewellers is unfoundedAs per CEPA, which became effective May 1, 2022, India can import 140 MT in 2023-24 from the UAE with 1% duty concession against effective customs duty or the Most Favoured Nation rate, which is 15%.
Last year, 110 MT gold import was allowed at concessional rate. Of that, only 8.1 MT was imported. Sources said the UAE had requested for removal of restrictive criteria like allocation of gold TRQ to only jewellery manufacturers and to allow all importers to be eligible for availing the quota
India’s total gold imports shrank 24% on-year in FY23 to $35 billion.
The government will now notify a fresh window for inviting new applications for gold TRQ that would be open for all those who have Importer Exporter Code.