Page 26 - Bullion World Volume 02 Issue 02 June 2022_Neat

Bullion World | Volume 2 | Issue 02 | June 2022

All about Import of Gold

under UAE CEPA 2022

Background
The Comprehensive Economic HSN codes affecting Gold and
Partnership Agreement (CEPA) jewelry covered under the CEPA
between the governments of India S.No. 7905 to 8027 of Annexure
and the United Arab Emirates (UAE) 2A of the FTA deals with the entries
came into the public domain on 27 regarding Chapter 71. It further
March 2022, following the Foreign details standard & effective Rates
Trade Agreement (FTA) signed and tariff modalities in the form of
between the two countries a month Tariff Elimination Immediate (TEI),
before. Given that UAE has been one Tariff Elimination Phased (TEP),
of the prominent suppliers of Gold to Tariff Reduction (TR), Exclusion List
India with a market share in range of (EXC), or Tariff Rate Quota (TRQ),
12% to 15%, the agreement carried and other particulars against every
significance for the gold trade in 8 digit HSN code.
India. Mr Harish Chopra 1
Senior Policy Consultant,
India Gold Policy Centre

- The following three HS 8 codes are covered under 7108, wherein the standard rate is 10%, and the effective rate is
12.5%, as tabulated below -

S No HS 8 Code Description Tariff Modality offered

1 71081100 Non-monetary gold powder TR (Tariff concession/relief of 1% in
absolute percentage terms, TRQ of 200
Other unwrought forms of non-
2 71081200 tons phased in 5 years –
monetary Gold
Year 1 - 120MT
Year 2 - 140MT
Other semi-manufactured forms of Year 3 - 160MT
3 71081300
non-monetary Gold Year 4 - 180MT
Year 5 to 10 - 200MT
1Chartered Accountant, a Senior Policy Consultant with India Gold Policy Centre @ IIM, Ahmedabad, and former banker with a leading
international bullion bank for ~15 years. The opinions expressed in this document are that of the author and may not reflect the views of India Gold
Policy Centre @ IIM, Ahmedabad

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