The first consignment of jewellery sent by India to the UAE under the Comprehensive Economic Partnership (CEPA) was received by private sector gold business leaders on Tuesday.
The first shipment of three packages contained approximately $1 million worth of precious gems and jewellery confirmed Indian ambassador to the UAE Sanjay Sudhir.
BVR Subrahmanyam, the commerce secretary, flagged the shipment as zero duty from New Delhi. Prior to the implementation of CEPA, importers were subject to a 5% duty. The first customers to import duty-free goods saved about $50,000 thanks to the new agreement.
The consignment was handed over to various heads of private sector gold businesses in Dubai, including KP Salam, vice chairman of Malabar Gold; Chandu Siroya, owner of Siroya Jewellers; and representatives from Jewel One Jewellery LLC, by the Indian Ambassador and Juma Al Kait, assistant undersecretary of foreign trade affairs at the Ministry of Economy.
On Tuesday, Al Kait also announced the launch of a new webpage dedicated solely to the India-UAE CEPA. Businesses and investors who want to benefit from the agreement can go to https://www.moec.gov.ae/en/cepa for more information. A special dashboard on the website allows traders to find tariffs that best represent their product.
On Tuesday, May 3, the Indian envoy and UAE officials handed over the valuables at a special ceremony held at the Transguard Headquarters in the Dubai Airport Freezone.
Senior UAE officials from the Ministry of Economy, Dubai Customs, and heads of gold and jewellery businesses were present for the meeting. CEPA was signed by the UAE and India in February of this year.
The agreement is expected to increase non-oil trade between India and the UAE from $60 billion to $100 billion in five years.
Enhanced market access, clear and transparent trade rules, lower or eliminated tariffs, simplified customs procedures, and rules-based competition are the most significant benefits of CEPA. The agreement also provides government procurement opportunities for businesses and investors, as well as more information and guidance for small and medium-sized businesses (SMEs).
