Delays in allocating preferential tariff rate quotas (TRQs) for gold imports under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) have left Dubai-based bullion exporters in uncertainty, disrupting legitimate precious metal trade corridors between the two countries. Under the bilateral trade pact, designated Indian importers are entitled to import fixed quantities of gold from the UAE at a concessional customs duty rate, giving Dubai bullion traders a competitive advantage in servicing the world’s second-largest consumer market. However, administrative hold-ups in issuing the annual import quota licenses by Indian authorities have effectively halted shipments under the preferential mechanism, forcing suppliers to hold back sizable inventories. Industry trade bodies warn that prolonged bottlenecks in official channels risk driving market participants toward informal trade routes, potentially boosting unofficial gold smuggling to meet domestic festive and jewelry demand. Exporters and Indian bullion associations are urging regulatory bodies to expedite quota allocations to restore transparency, prevent revenue losses, and ensure smooth supply chain operations ahead of peak demand cycles.
Delays in India-UAE Gold Import Quotas Leave Dubai Exporters Stranded and Spark Smuggling Concerns
