INVC NEWS
New Delhi — : The Government of India has introduced strict regulations that will make importing cheap gold from Dubai far more difficult. Effective immediately, the import of gold and silver in raw and powder forms has been banned. Now, only designated agencies and jewelers operating under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) can legally bring in these precious metals. This move follows the Budget FY 26 announcement introducing new HS (Harmonized System) codes targeting major items such as at least 99% pure platinum, gold, and silver.
Previously, some importers exploited loopholes by labeling 99% gold products as platinum alloys to enjoy lower import tariffs under CEPA. To prevent this misuse, the government has rolled out a new HS code exclusively for platinum items with 99% or higher purity, banning imports of gold disguised as platinum. This effectively cuts off the route of smuggling gold as platinum to benefit from tariff concessions.
India imports around 200 metric tonnes of gold annually from the UAE, benefiting from a 1% tariff concession under the tariff rate quota (TRQ) agreement. However, the new regulations ensure tighter control over these imports to protect the domestic market.
The volume of gold jewellery imports soared by 87.4% between April and December 2024 compared to the same period in 2023, mostly comprising chains, earrings, and rings. These new import rules aim to regulate the surge and curb the misuse of tariff benefits, ensuring a fair and transparent gold trade ecosystem.
With these new HS codes and import restrictions, India is closing the door on cheap gold imports from Dubai disguised as platinum, strengthening the domestic gold market and safeguarding against revenue losses.
