The Indian government on Monday imposed fresh restrictions on the import of gold and silver in unwrought, semi-manufactured, and powdered forms, limiting such imports to only nominated agencies, qualified jewellers, and authorised holders of the valid Tariff Rate Quota (TRQ) under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
The move is part of the Centre’s efforts to plug loopholes identified in Budget 2025–26, where new Harmonised System (HS) codes were proposed for key precious metals like gold dore, silver dore, and platinum containing at least 99% purity. These revised codes aim to ensure stricter monitoring of trade and customs compliance.
Officials revealed that certain importers had exploited the CEPA provisions by importing gold—reportedly containing 99% gold content—under the guise of platinum alloys to avail lower customs duties. To curb such misuse, the government introduced a dedicated HS code exclusively for platinum with 99% or higher purity. Only this category is now eligible for duty benefits under CEPA, while imports of other platinum compositions have been brought under stricter restrictions.
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“This measure follows the Budget announcement to create separate HS codes to ensure that gold imports don’t happen in the name of platinum,” said an official source. “It aligns customs duty rules with import regulations to prevent revenue loss and ensure trade integrity.”
As per the India-UAE CEPA, India allows up to 200 metric tonnes of gold to be imported annually from the UAE with a 1% tariff concession under the TRQ mechanism. The latest steps are seen as crucial in maintaining the sanctity of this bilateral trade agreement while preventing its exploitation.
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