The Directorate General of Foreign Trade (DGFT) has updated the procedures for allocating tariff rate quotas (TRQ) for gold imports under the India–UAE Comprehensive Economic Partnership Agreement (CEPA), introducing new eligibility requirements and shifting to a competitive online bidding system.
Under the revised rules, applicants seeking gold import quotas must now be registered with the Bureau of Indian Standards (BIS) for hallmarking and hold a valid GST registration. The DGFT clarified that the import of gold dore (semi-pure gold alloy) under the TRQ route remains prohibited, continuing the restriction from the previous framework.
The allocation of gold quotas under CEPA will now follow a competitive online tender process instead of the earlier nomination-based system. This change aims to enhance transparency, ensure fairness, and broaden participation among eligible jewellers, particularly those compliant with BIS certification and GST registration, preventing quota concentration among a few dominant players. The new bidding system is expected to improve efficiency, accountability, and oversight in India’s gold import regime, which allows preferential tariff rates under annual quota limits.
The DGFT’s amendments to the Foreign Trade Policy (FTP) 2023 specify that eligible applicants for FY 2025–26 can submit applications online via the DGFT Import Management System, with detailed timelines and procedures notified annually. These reforms reflect the government’s efforts to make TRQ allocations more transparent, technology-driven, and aligned with evolving trade priorities.
In addition, the DGFT has tightened export compliance for jewellery manufacturers under the advance authorisation scheme to address procedural loopholes amid rising gold imports. Exporters are now required to fulfil obligations within 120 days of import, eliminating prior extensions. This comes after India’s gold imports surged from $4.6 billion in August to $9.6 billion in September, contributing to a 13-month high trade deficit of $32.15 billion. The measures aim to prevent advance stocking, improve traceability, and ensure duty-free gold is used for jewellery exports, balancing trade facilitation with regulatory discipline.
India’s jewellery export sector, contributing nearly $30 billion annually, remains closely monitored due to its impact on trade imbalances and compliance standards.
