“We get zero duty access to the UAE market for domestic jewellery. That duty was five per cent duty on Indian jewellery. Now, it’s gone to zero, so it has been welcomed by the gem and jewellery sector.”
— Indian Commerce Secretary
PRAVASISAMWAD.COM
India has decided to provide concessional import duties on gold imports of up to 200 tonnes per year. Incidentally, India imported around 70 tonnes of gold from the UAE in 2020-21. Commerce Secretary was quoted saying that “we are a major importer of gold. India imports about 800 tonnes of gold every year. In this particular agreement, we have given them (UAE) a TRQ (tariff rate quota) of 200 tonnes where the tariff (or import duty) in perpetuity will be one per cent less than whatever is the tariff charged for the rest of the world…Therefore, the UAE has a one per cent price advantage in gold bars. That one per cent tariff difference means those 200 tonnes will be diverted to the UAE,” the secretary said.
He said the biggest gain for India is that “we get zero duty access” to the UAE market for domestic jewellery. That duty was five per cent duty on Indian jewellery. Now, “it’s gone to zero”, so it has been welcomed by the gem and jewellery sector, the secretary said.
TRQ is a quota for a volume of imports that enter India at specified tariffs. After the quota is reached, a higher tariff applies on additional imports. TRQ would also be there for copper, polyethylene and polypropylene.
CEPA will see commerce between the two countries reach the USD 100-billion mark in over five years and create about 10 lakh jobs in sectors such as apparel, plastic, leather and pharma. Under the pact, the UAE is opening the market for 90 per cent of Indian goods at zero duty and in five years time, it would reach 99 per cent. Similarly, India would give zero duty market access to 80 per cent of UAE exports and in ten years’ time, it would go up to 90 per cent
The India-UAE Comprehensive Economic Partnership Agreement (CEPA), will see a number of domestic goods getting zero duty access to the UAE market. The pact is scheduled to come into force in April or May.
India, however, has kept certain segments out of the agreement to protect them. These include dairy, fruits, vegetables, cereals, tea, coffee, sugar, food preparation, tobacco, petroleum waxes, coke, dyes, soaps, natural rubber, tyres, footwears, processed marbles, toys, plastics, scrap of aluminium and copper, medical devices, TV pictures, auto and auto components and sectors under the production-linked incentive scheme.
CEPA will see commerce between the two countries reach the USD 100-billion mark in over five years and create about 10 lakh jobs in sectors such as apparel, plastic, leather and pharma. Under the pact, the UAE is opening the market for 90 per cent of Indian goods at zero duty and in five years time, it would reach 99 per cent. Similarly, India would give zero duty market access to 80 per cent of UAE exports and in ten years’ time, it would go up to 90 per cent.
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