Shipment courier

UAE receives India’s first duty-free jewelry shipment worth $1 million

The United Arab Emirates received its first duty-free imports from India on Tuesday containing gold and jewelry worth $1 million.

Just two days after the historic Comprehensive Economic Partnership Agreement came into force, three parcels containing precious stones, jewelry and gold have arrived from India.

With the previous 5% tariffs on items now removed under the new deal, the first customers to import duty-free goods saved approximately $50,000 in taxes.

90% of Indian exports by volume are now duty free and I think today’s momentous occasion has kicked things off with a bang

Sunjay Sudhir, Ambassador of India to the United Arab Emirates

In recognition of the first goods imported under CEPA, Sunjay Sudhir, India’s Ambassador to the United Arab Emirates, and Juma Al Kait, Deputy Undersecretary for International Trade Affairs, Ministry of Economy, handed over the items representatives of Malabar Gold and Diamonds, Siroya Jewelers and Jewel One Jewellers.

“The first shipment had an approximate value of around $1 million,” Sudhir said.

“Before signing CEPA, the duty would have been charged at 5%, but today it is 0%.

“On the first day of CEPA’s entry into force, 90% of India’s exports by volume are now duty free and I think today’s momentous occasion has kicked things off with a bang.”

While the UAE received its first shipment of goods from India on Tuesday, a similar shipment was sent to India from the UAE under the deal.

A bright future for trade and investment

Gold and jewelry make up a large part of the two-way trade between the UAE and India and Mr. Sudhir and Mr. Al Kait said CEPA will help clean up the sector and enable better business.

“Between our two countries, gold, gemstones and jewelry are such important items,” Sudhir said.

“For example, to follow our numbers from last year where our financial year is April to March, India imported about $14 billion worth of gold and unpolished gemstones and exported about $5 billion worth. billion dollars worth of jewelry.

“To encourage trade by removing tariffs and institutionalizing mechanisms to facilitate import or export, I think things become much better for businesses.

“Now that governments have made up their minds, it is up to the private sector to capitalize on this agreement and drive trade and investment between the two countries.”

The benefits of CEPA include improved market access, reduced or eliminated tariff rules, simplified customs procedures, clear and transparent rules, and rules-based competition.

By establishing wider CEPA networks with global counterparts, Mr. Al Kait said it would strengthen the UAE’s position as a global hub for gold and diamonds.

“Gold and jewelry make up a large part of the two-way trade between the UAE and India and through our CEPA networks [we are] committing ourselves as a country to abide by all international rules when it comes to the process of delivering goods,” he said.

“A few months ago, we announced the [Good Delivery Standard] for gold.

“We believe this process will help and protect traders and also cleanse global markets of unwanted trade in this important sector.”

The Good Delivery Standard for Gold will be a publicly available system to monitor gold imports and exports and aims to bring UAE practices closer to those used by the Organization for Economic Co-operation and Development.

The United Arab Emirates and India signed CEPA in February and it entered into force on May 1.

The pact is expected to increase non-oil trade between the two countries to $100 billion in five years from the current $60 billion, opening new avenues for investment.

In accordance with this decision, the Ministry of Economy has unveiled a new webpage dedicated to CEPA, which provides information to companies and investors in the United Arab Emirates who wish to take advantage of the advantages offered by the agreement.

Updated: May 04, 2022, 08:15

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