Page 15 - Bullion World Volume 04 Issue 08 August 2023

Bullion World | Volume 3 | Issue 8 | August 2023

manufacturing process and a value Instead of flowing all the way to the barriers and shaping incentives for
addition requirement of 3%. The refining and vaulting hubs, this trade growth in the coming years. In 2024,
formula to calculate the value addition agreement has created a direct DMCC will release its next eagerly
is explained below. To put this in market access through UAE. anticipated Future of Trade edition.
perspective, converting silver bars of As we enter firmly into the second It goes without saying that we will
HS code 7106.9220 to silver grains half of the year, what is clear is be monitoring the implementation
of HS code 7106.9110 would comply that regional trade agreements and success of UAE-India CEPA
with CTSH requirements. are becoming stronger and more closely, not only to see if our 2022
prevalent – with obvious upsides for analysis proved right, but with a view
The article although limits to one- industry, including precious metals to determine where the direction of
side of the trade agreement, readers like gold and silver. As DMCC travel is headed when it comes to
may appreciate that this shall bring expressed in its 2022 Future of Trade regional and global trade in the years
a secular change in the global flow report, we expect trade agreements ahead.
of large bar and scrap market. to continue to be critical to lowering

(FOB value or ExWorks price) - (Value of NOM)
_______________________________________ = Minimum 3% value addition FOB value or Ex Works price
NOM means Non-Originating material, as per above example it stands for value of 7106.9220

(Or)

Cost of originating material + direct labour cost * direct overhead cost
__________________________________________________________ = Minimum 3% value addition FOB value or Ex
Works price

Table 2: Rules for Silver imports to India

HS Code Commodity description Product specific rules

71069110 Unwrought grains of silver CTSH+3% value add

71069190 Other Unwrought Silver CTSH+3% value add
Sheets, plates, strips, tubes and pipes of silver (including silver
71069210 CTSH+3% value add
plated with gold or platinum)

71069220 Bars of silver (including silver plated with gold or platinum) CTSH+3% value add

Other Semi-manufactured forms of silver (including silver
71069290 CTSH+3% value add
plated with gold or platinum)

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