Gold Import, Gold Dore, IIBX: In a significant development, Indian jewellers holding valid licenses under the India-UAE free trade agreement can now import a specified quantity of gold at concessional customs duty through the India International Bullion Exchange (IIBX), as highlighted in a recent DGFT notification.
This move, effective since the implementation of the free trade agreement in May 2022, allows domestic importers to benefit from a one percent duty concession on a specified gold quantity under the tariff rate quota (TRQ) provisions of the pact.
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The Directorate General of Foreign Trade (DGFT) issues TRQ certificates to eligible companies for imports, with notification and regulation by the International Financial Services Centres Authority (IFSCA). According to the DGFT’s announcement on Monday, valid India-UAE TRQ holders, as notified by IFSCA, can import gold through IIBX against the TRQ and receive physical delivery through IFSCA-registered vaults located in special economic zones (SEZs), following the prescribed guidelines.
IIBX is a collaboration of major market institutions in India that started in July 2022 at GIFT IFSC, Gandhinagar. It is regulated by IFSCA and aims to simplify bullion import and trading in India. It also supports investments in bullion products and has vaulting facilities within IFSCs. The bullion, kept in IFSCA-authorized vaults and verified by India International Depository IFSC Ltd, is traded on IIBX through Bullion Depository Receipts.
This method ensures transparency and security in bullion trading, following the international standards of IFSCA. IFSCA is a single authority that was formed in April 2020 to oversee financial products, services, and institutions within IFSC in India. It is located at GIFT City, Gandhinagar, and fosters a conducive environment for financial activities within IFSCs.