In spite of a reduced tariff under the Comprehensive Economic Partnership Agreement (CEPA) agreed in May 2022, India’s gold imports from the UAE fell to their lowest level in two decades in the year ending March 31, 2023.
According to Mint, India’s financial daily, gold shipments almost dropped to 52.81 tonnes in the fiscal year (FY) 2023 from 99.86 tonnes the year before.
In FY 2003, the UAE imported 18 tonnes of gold, which was the lowest amount ever.
According to the CEPA, a concessional tariff known as the tariff rate quota (TRQ) is applicable on the first 120 tonnes of gold imports in the first year.
Gold imports from the UAE had decreased last year as clarity regarding TRQ was anticipated, Colin Shah, a former vice chairman of the Gem and Jewellery Export Promotion Council told a UAE-based newspaper, Zawya reported.
However, he believed that the UAE’s imports of gold will expand more rapidly in FY 2024.
Under CEPA, imports of gold from the UAE are eligible for a 1% tariff reduction.
The allotment for concessional gold for the first year is 120 tonnes. The limit is 140 tonnes for the second year, 160 tonnes for the third year, 180 tonnes for the fourth year, and 200 tonnes for the fifth, according to the newspaper.
Meanwhile, Dubai International Chamber, one of the three chambers of Dubai Chambers, has successfully assisted Senco Gold and Diamonds in establishing its presence in Dubai.
The company is a household name in India with 139 showrooms and a solid reputation spanning five decades. Senco has annual sales of around USD 450 million and the company’s Dubai showroom will be its first outside of India.
“Senco’s story represents a perfect outcome for all concerned. We are delighted to have helped such a prestigious Indian company – one of the most respected jewellery brands in the entire subcontinent – to take advantage of the opportunities available in Dubai’s thriving gems and jewellery sector. Dubai International Chamber has had a representative office in Mumbai since 2018, and we remain committed to assisting our members to trade with India, as well as helping Indian companies understand all the benefits of setting up business in Dubai”, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers commented on the achievement.