Govt tightens gold import rules, plugs Dubai route misuse under CEPA

The government has tightened import rules for gold and silver, restricting their entry into India to only nominated agencies, qualified jewellers, and valid TRQ (Tariff Rate Quota) holders under the India–UAE Comprehensive Economic Partnership Agreement (CEPA), the Economic Times reported.
The restrictions apply to unwrought, semi-manufactured, and powdered forms of gold and silver.
Backdoor gold route via Dubai closed
The move follows reports that some importers had exploited ambiguities in customs classifications to bring in nearly pure gold from Dubai under the guise of platinum alloy.
By misdeclaring gold as platinum, they were able to access lower import duties offered under CEPA.
"This measure follows the Budget announcement to create separate HS codes to ensure that gold imports don't happen in the name of platinum," an official was quoted as saying.
HS code reform and CEPA quotas
The Budget for FY26 proposed the creation of dedicated HS codes for precious metals like gold dore, silver dore, and platinum. The goal is to better regulate and monitor imports while aligning duty structures.
Under CEPA, India allows the import of up to 200 metric tonnes of gold annually from the UAE at a reduced tariff — with a 1 per cent concession available via the TRQ mechanism.
Trade council urges diversification
In February, the Gem and Jewellery Export Promotion Council (GJEPC) urged the Commerce Ministry to partially shift gold imports from Switzerland to the US to help correct India's trade imbalance.
Switzerland currently supplies 35 per cent of India's gold bars. The council proposed a similar shift in silver bar imports from the UK — which supplies 41.54 per cent — to the US.
In 2024, India exported $11.58 billion worth of gems and jewellery to the US while importing $5.31 billion, creating a $6.27 billion surplus.
The US accounted for 20.28 per cent of India's exports in this category and 12.99 per cent of overall trade.
The GJEPC proposal comes amid concerns over potential tariff pressures from US President Donald Trump, who has publicly called out trade imbalances. The council has also proposed lower domestic import duties to offset possible US retaliation.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Time of India

an hour ago

• Time of India

India-Canada diplomatic reset boosts student confidence

Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in NRI 1. Harvard and Trump administration resume talks to resolve ongoing feud Reset in diplomatic relations between India and Canada has restored confidence among Indian students and parents, with most study-abroad platforms expecting a 20-30% increase in admissions in Canadian colleges this latest improvement in bilateral ties comes as a huge relief for students who had to stall their Canada study plans for more than a year. It also marks a blessing for those who had shortlisted the US as their only overseas study option but were forced to consider other destinations due to stricter visa and immigration rules adopted by the Donald Trump administration earlier this Sharma, a Delhi-based student, who had deferred her Fall 2024 offer from the University of Toronto due to visa uncertainty is now busy packing her bags. 'Following the improved bilateral climate, she reactivated her application and is now headed to study Computer Science this Fall,' said Adarsh Khandelwal, co-founder, Collegify, a study-abroad platform that helped with the admission.'Since the easing of tensions, we have observed a 31% increase in active Canadian applications for the Fall 2025 intake,' said permit approvals for Canada from India plunged 42% to 131,000 in 2023 from 226,000 in the year before, according to IRCC/Immigration, Refugees And Citizenship Canada/ data. Approvals fell a further 31% in Q1 2025 to 30,640 permits but experts predict a recovery in the coming Group, a study-abroad consulting firm, saw a 10-12% drop in Indian students' interest in Canadian academic institutions due to the diplomatic standoff, said founder Sanjay Laul.'There's a growing sense that it's getting harder to navigate the visa process for the US. Even students with strong academic profiles are facing unpredictability,' said Laul, adding that the current scenario is turning Canada a more attractive destination for Indian visa policies introduced by Canada and tighter measures taken by the Trump government especially on limiting foreign student enrolment had cast a cloud of doubt and uncertainty, according to Atul Verma, co-founder, Masterclass Space.'The signal of improving diplomatic ties between India and Canada comes as a welcome whiff of fresh air,' he current trends are all positive as there is an increase in student confidence and positive sentiment, noted Piyush Kumar, regional director, South Asia, IDP Education.'Canada has consistently remained a preferred destination, and this renewed engagement will contribute positively to students' plans for future intake,' said said IDP continues to see strong interest from Indian students in traditional English-speaking countries like Canada, the US, the UK and Australia.

Mint

an hour ago

• Mint

Wall Street week ahead: All eyes on Middle East conflict, Jerome Powell's testimony, PCE inflation, personal income data

Amid the escalating Middle East conflict, Wall Street investors will have a plenty of economic data to look forward to in the week ahead. Tensions in the West Asia deepened after the United States joined Israel in attacking Iran. The US attacked three nuclear sites in Iran on early Sunday. In an address to the nation from the White House, US President Donald Trump said that Iran's key nuclear sites were 'completely and fully obliterated'. In response, Iran's Foreign Minister Abbas Araghchi stated that the time for diplomacy had passed and that his country had the right to defend itself. 'The warmongering, a lawless administration in Washington is solely and fully responsible for the dangerous consequences and far reaching implications of its act of aggression,' he said at a news briefing in Turkey. In terms of the US economic data, focus of market participants will be on the Personal Consumption Expenditures Price Index, the Federal Reserve's preferred inflation gauge, personal income and spending data, and home sales numbers. Spotlight will also be on US Fed Chair Jerome Powell's testimony before the House Financial Service Committee on Tuesday and Wednesday. On June 23 (Monday), separate reports on S&P flash US services PMI for June, S&P flash US manufacturing PMI for June, existing home sales for May will be released. On June 24 (Tuesday), data on S&P Case-Shiller Home Price Index (20 cities) for April and consumer confidence for June will be declared. US Federal Reserve Chair Jerome Powell is scheduled to testify before the House Financial Service Committee on Tuesday. On June 25 (Wednesday), data on new home sales for May will be released. On June 26 (Thursday), separate reports on advanced US trade balance in goods for May and second revision of first quarter Gross Domestic Product (GDP) will be released. On June 27 (Friday), data on consumer sentiment (final) for June, personal income for May, personal spending for May, and PCE Index for May will be released. Following companies are due to report first quarter results in the week ahead — FactSet Research, Commercial Metals, FedEx, Carnival Corp, BlackBerry, Micron, Paychex, Daktronics, Nike, Walgreens Boots, and Concentrix. US stocks closed mixed on Friday. The S&P 500 lost 0.21%, while the Nasdaq Composite shed 0.49%. The Dow Jones Industrial Average, however, rose 38.47 points, or 0.09%, to 42,210.13. In the bond market, the yield on the 10-year Treasury edged down to 4.37% from 4.38%. The 2-year yield fell to 3.90% from 3.94%. Oil prices fell on Friday as the US imposed new Iran-related sanctions, marking a diplomatic approach that fed hopes of a negotiated agreement. Brent crude futures ended down $1.84, or 2.33%, to $77.01 a barrel. US West Texas Intermediate crude for July lost 21 cents, or 0.28%, at $74.93. Brent rose 3.6% on the week, while front-month US crude futures increased 2.7%.

Mint

an hour ago

• Mint

Markets poised for a near-term dip, crude can worsen the sentiment

US President Donald Trump announced that Washington has carried out strikes on three nuclear facilities in Iran, marking a direct involvement in the campaign initiated by Israel last week to dismantle Iran's nuclear infrastructure. Since the war started two weeks ago, the Nifty 50 and the Sensex 30 index have gained 1.59%. At the same time, crude oil prices have gained 2.19% to $76.57 per barrel. The US has long been watchful about Iran's expanding nuclear programme, with tensions rising especially a couple of years ago when Iran's uranium enrichment neared 83.7% (very close to weapons-grade, 90% enrichment), said Alok Agarwal, head-Quant and Fund Manager at Alchemy Capital Management. 'This concern has now escalated to the point of direct US military action, making the situation more volatile, in our view," he added. Read more: US strike on Iran raises oil shock, capital flow risks for India's economy From an Indian investment perspective, the primary concern isn't just the geopolitical tension itself—which mostly affects market sentiment—but the potential surge in crude oil prices, which would have a direct economic impact, Agarwal added. Moreover, a sharp spike—especially beyond the $100/barrel mark—would be a major concern for Indian markets, as India imports over 80% of its crude requirements. Crude price impact Aniruddha Sarkar, CIO at Quest Investment Advisors, said that the key concern for the market is the impact of rising crude prices, which could widen the current account deficit, fuel inflation, and weaken the rupee due to higher forex outflows owing to a higher fuel bill and foreign institutional investors (FII) selling in risk-off mode from emerging markets. The second stage impact, which could happen if the war persists for long, would be on sectors like oil marketing companies (OMCs), paints, and aviation, which could face cost pressures and perform negatively as crude prices climb, Sarkar added. However, he said that these impacts could remain short-lived as the war may not continue for a long time. While other experts believe that no further retaliation by Iran might actually lead to an upside in the Indian markets. "If Iran doesn't retaliate in a way that is surprising or nasty, markets could actually rally as investors reckon the tensions would abate, but if there are attacks on the Strait of Hormuz or on US bases, tensions could actually escalate and all bets would be off the table," said Nirmal Bhanwarlal Jain, founder of IIFL Group and managing director at IIFL Finance. Anthony Heredia, MD & CEO, Mahindra Manulife Investment Managers, said, 'If there is no escalatory move from Iran now or over the next few days, you may actually see positivity extending as in a risk-on market environment, people anecdotally find reasons to be optimistic rather than the other way around." Taking advantage Markets have shown remarkable resilience so far in the face of international skirmishes and tariff threats, and if there could be further escalation of tensions in the coming weeks if Iran were to retaliate, investors would do well to keep the powder dry to take advantage of any market correction, said Sandeep Bagla, CEO, TRUST Mutual Fund. Read more: Mint Explainer | Strait of Hormuz: Will Iran shut the vital oil artery of the world? George Thomas, fund manager at Quantum Mutual Fund, said that in the coming few days, markets are expected to be very volatile. Hence, investors should invest in a staggered manner, as it helps average out the cost and reduces risk. The India VIX index has fallen 9.13% since 13 June, when the war started. From a technical standpoint, the prolonged phase of consolidation has notably impacted key indicators, said Sudeep Shah, deputy vice president, head - Technical & Derivatives Research at SBI Securities. 'The upward slope of the short and medium-term moving averages has slowed down, reflecting a loss of momentum. Simultaneously, the daily RSI (Relative Strength Index) continues to move sideways, in line with the RSI range shift concept that suggests a lack of directional bias. Further, the trend strength indicator – ADX (Average Directional Index), is currently quoting near the 13 level, which was the lowest level since July 2024, which shows a lack of strength in either direction," Shah added. Shah added that the zone of 24,880-24,850 will act as immediate support for the Nifty 50 index. While on the upside, the zone of 25,200-25,250 will act as a crucial hurdle for the index, he said. However, India is in a better place than other times when there has been tension, experts say. 'While we find ourselves in a more inflationary than disinflationary environment, India has never been in a better place than it is now to handle the repercussions of the latest round of tensions," said Kenneth Andrade, founder and CIO of Old Bridge Capital Management. Even the Asian indices closed higher on Friday. The Hang Seng index closed 1.29% higher, the Kospi index closed 1.48% higher, and the CSI 300 index ended 0.09% higher. Where's oil headed? Under the severe outcome, oil prices could surge to $120-130 per barrel if the Strait of Hormuz is closed or there is a general Middle East conflagration, which could ignite retaliatory responses from major oil-producing countries, said JP Morgan in a report on 12 June. Concerns are that if Iran closes the Strait of Hormuz, the global oil supply will be disrupted, which in turn will cause a rally in oil prices. Read more: Donald Trump's war dilemma: Should America put boots on the ground in Iran or not? However, historically, Iran has never fully closed the Strait of Hormuz, even during major conflicts like the Iran-Iraq War (1980-1988), the rise in US-Iran tensions after 2011, or the fallout from the Iran nuclear deal (2018-2020). Experts say that this is because doing so would hurt Iran more than help it. About 20% of the world's oil passes through the Strait of Hormuz, which is also a key path for liquefied natural gas exports, especially from Qatar, one of the biggest suppliers. 'US naval forces in the Persian Gulf act as a strong military deterrent, and any closure attempt by Iran would risk severe retaliation," said Yes Institutional Equities in a report dated 18 June. It further added that Iran depends heavily on the Strait for its own oil exports and critical imports, making a blockade counterproductive. 'Moreover, shutting the Strait would harm regional allies like Qatar and Iraq, who also rely on the waterway, potentially straining Iran's strategic relationships. It would also violate international maritime law, further isolating Iran diplomatically," Yes Institutional Equities said. Hence, experts say that Iran has often used the threat of closing the Strait as a political tool to gain leverage in talks—without actually going through with it.