India Opens Second Round of Gold TRQ Allocation Under India-UAE CEPA: A Major Opportunity for Trade and Industry

 India Opens Second Round of Gold TRQ Allocation Under India-UAE CEPA: A Major Opportunity for Trade and Industry

The Directorate General of Foreign Trade (DGFT), Government of India, has issued a significant Public Notice (No. 45/2025-26) on January 23, 2026, announcing the second round of allocation for Tariff Rate Quota (TRQ) for gold imports under tariff head 7108 through the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for the financial year 2025-26.

What's New in This Announcement?

This development comes as a follow-up to the earlier Public Notice no. 31/2025-26 and Trade Notice no. 16/2025-26 dated October 29, 2025, which established that gold TRQ allocation would be conducted through a competitive bidding/tender process. The current notice invites fresh bids and tenders for the second round, offering a substantial allocation opportunity for eligible participants.

Key Highlights at a Glance

Total Allocation Quantity: The second round offers an allocation of 80 metric tons (MT) of gold through the tender process.

Validity Period: TRQs issued to successful bidders will remain valid for six months from the date of issuance of the TRQ Authorization.

Eligibility Expansion: Following the Delhi High Court's directive dated September 26, 2025, the allocation process has been broadened to ensure fairness and inclusivity in the distribution of TRQs.

Court Order Mandates Inclusive Allocation

The Hon'ble High Court of Delhi played a crucial role in shaping this allocation round. In its order dated September 26, 2025, the court disposed of petitions that raised concerns about the TRQ allocation policy. The operative part of the court order emphasized two critical aspects:

1. Time-Sensitive Review: Given that six months of the current financial year had already elapsed, the court directed authorities to expeditiously review the TRQ allocation, preferably within four weeks.

2. Broad-Based Allocation Policy: The court stressed that the allocation policy must be inclusive and extend opportunities to applicants who may not have a track record of substantial turnover over the preceding few years, as well as those seeking TRQ allocation for the first time.

The court further indicated that the DGFT may introduce additional conditions or criteria to allocate the TRQ fairly, ensuring a level playing field for all eligible participants.

Eligibility Criteria: Who Can Apply?

In compliance with the court's directive, the DGFT has broadened the eligibility for the second round:

New and Existing Participants: Both participants from the first round and new applicants are eligible to bid in the second round.

Entity Size Categories: The allocation considers different business scales with maximum eligible quantities:

• Micro Enterprises: Up to 50 KG
• Small Enterprises: Up to 100 KG
• Medium Enterprises: Up to 250 KG
• Other Units: Up to 500 KG

Beyond First Round Limits: The limits prescribed for this round are in addition to any quantities already allocated in the first round, providing cumulative opportunities for existing allocatees.

Registration and Participation Requirements

The tender process has specific requirements to ensure transparency and authenticity:

Single User Registration: Only one registered user per IEC (Import Export Code) is allowed to participate in the bidding process on the MSTC website.

Documentation for IEC Verification:

• If the registered user's details (Proprietor, Partner, Director, etc.) are listed in the IEC, a copy of the IEC must be submitted during the technical bid.
• If the registered user's name doesn't appear in the IEC details, an authority letter duly signed by the Proprietor/Partner/Karta/Director must be submitted.

How to Participate

The tender process has been designed for ease and transparency:

1. Access Tender Documents: The complete tender document with detailed procedures is available at Annexure-I, accessible on the MSTC website.

2. Review Eligibility: Check the eligibility conditions outlined in Annexure-IV of Appendix-2A to ensure compliance.

3. Prepare Your Bid: Follow the tentative schedule provided in Annexure-II for submission timelines.

4. Submit Through MSTC Portal: All bids must be submitted through the official MSTC website.

Important Warnings and Compliance

The DGFT has issued strict warnings to maintain the integrity of the tender process:

Zero Tolerance for Misrepresentation: Any false information or misrepresentation will lead to immediate cancellation of the bid and may invite penal proceedings under the Foreign Trade (Development and Regulation) Act and applicable rules.

Full Adherence Required: Participants must comply with all provisions of the tender document to avoid disqualification.

Significance of This Initiative

This announcement represents a significant step in strengthening India-UAE trade relations under the CEPA framework. The gold trade has traditionally been a crucial component of India's imports, and the structured TRQ allocation ensures:

• Market Stability: Controlled imports through quota allocation help maintain market equilibrium.
• Fair Access: The broadened eligibility criteria ensure that both established players and new entrants can participate.
• Compliance with Bilateral Agreements: The process aligns with India's commitments under the India-UAE CEPA.
• Transparency: The competitive bidding mechanism ensures transparency in allocation.

What This Means for Businesses

For businesses in the gold trade sector, this second round presents several opportunities:

New Market Entrants: First-time applicants now have a genuine opportunity to participate in preferential gold imports under the India-UAE CEPA.

Growth for Small and Medium Enterprises: The tiered allocation structure ensures that smaller businesses aren't crowded out by larger players.

Additional Quota for Existing Allocatees: Those who received allocations in the first round can apply for additional quantities, subject to the prescribed limits.

Time-Bound Opportunity: With TRQs valid for six months, successful bidders have a reasonable window to plan and execute their imports.

Conclusion

Public Notice No. 45/2025-26 marks an important development in India's trade policy implementation, balancing commercial interests with judicial directives for fairness and inclusivity. The 80 MT allocation for gold imports under the India-UAE CEPA creates substantial opportunities for trade and industry participants across different business scales.

Interested parties are encouraged to review the complete tender document on the MSTC website, ensure compliance with eligibility criteria, and submit their bids within the stipulated timeline. This structured approach to TRQ allocation demonstrates India's commitment to transparent, fair, and efficient implementation of its bilateral trade agreements.

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For More Information:

• Contact: Director General of Foreign Trade
• Email: dgft@nic.in
• Tender Documents: Available on MSTC website
• File Reference: F.No. 01/89/180/01/AM-22/PC-2[B]/Part-I/E-35248

Issued by Lav Agarwal, Director General of Foreign Trade & Ex-Officio Additional Secretary to Government of India