India’s gold imports from the UAE reached a two-decade low in the year ended March 31, 2023, despite a concessional tariff under Comprehensive Economic Partnership Agreement (CEPA) signed in May 2022.

Gold shipments nearly halved to 52.81 tonnes in the financial year (FY) 2023 from 99.86 tonnes in the previous year, Mint, India’s financial daily, reported.

The lowest annual gold import from the UAE was in FY 2003, when it stood at 18 tonnes.

Under the CEPA, a concessional tariff is applicable on the first 120 tonnes of gold imports in the first year, referred to as the tariff rate quota (TRQ).

Gold imports from the UAE had fallen last year as clarity around TRQ was expected, the newspaper cited Colin Shah, a former vice chairman of the Gem and Jewellery Export Promotion Council, as saying.

He, however, anticipated higher growth in gold imports from the UAE during FY 2024.

A 1% duty concession for gold imports from the UAE can be availed under CEPA.

During the first year, the quota for concessional gold stands at 120 tonnes. For the second year, the limit is 140 tonnes, 160 tonnes in the third year, 180 tonnes in the fourth year, and 200 tonnes in the fifth year, the newspaper said. 

(Editing by Seban Scaria seban.scaria@lseg.com)