India Tightens Import Rules for Gold and Silver from UAE
Fresh Restrictions on Precious Metal Imports
India’s government has announced new rules that will make it more difficult to import gold and silver from the United Arab Emirates (UAE). The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, has issued a notification outlining these changes, which come into effect on May 1, 2025.
These changes are part of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and reflect modifications to India’s customs tariffs introduced in the 2025 budget.
Who Can Import?
Under the new rules, the import of gold, silver, and platinum will be restricted to specific entities. This includes:
- Nominated agencies approved by the Reserve Bank of India (RBI) for banks and the DGFT for other agencies.
- Qualified jewellers, as designated by the International Financial Services Centres Authority (IFSCA), who can import through the India International Bullion Exchange (IIBX).
Gold Imports: The import of gold with a purity of 99.5% or higher, whether unwrought, semi-manufactured, or in powder form, will be limited to Valid India-UAE TRQ holders notified by the IFSCA. These importers can only access gold through the IIBX and receive physical delivery via IFSCA-registered vaults located within Special Economic Zones (SEZs), adhering to IFSCA guidelines.
Gold Dore: Refineries can import Gold Dore under an import license with an “Actual User” (AU) condition.
Silver and Platinum: Imports of both silver and platinum will be subject to purity-specific conditions, with either free imports or imports routed through authorized agencies.
What Does This Mean?
These new regulations suggest that the Indian government is taking a more cautious approach to gold and silver imports, particularly from the UAE. The restrictions on who can import and the requirement to utilize specific channels (like the IIBX) aim to enhance transparency and control over the precious metal trade.
