Public Notice No. 39: Key Regulatory Updates and Compliance Guidelines Explained

India Opens First Round of Gold Import Quota Allocation Under UAE Trade Agreement

Comprehensive Guide to the India-UAE CEPA Gold TRQ Tender Process (FY 2025-26)

Executive Summary

The Directorate General of Foreign Trade (DGFT) has announced the first competitive bidding round for Gold Tariff Rate Quota (TRQ) allocations under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for the financial year 2025-26. This marks a significant shift in India's approach to gold imports, introducing a transparent e-auction mechanism exclusively for Micro and Small Enterprises in this initial round.

Key Highlights

Allocation Details:

• Total Quantity: 30 metric tons (MT) in the current round, with potential extension to 45 MT
• Eligible Participants: Restricted to Micro and Small Enterprises (MSMEs) only
• Maximum Allocation: 10 kg for Micro units, 25 kg for Small units
• Bidding Platform: MSTC e-commerce portal
• Timeline: Bids open December 29, 2025; closing January 2, 2026

Background: The India-UAE CEPA Advantage

The India-UAE Comprehensive Economic Partnership Agreement, effective since May 1, 2022, provides Indian importers with preferential tariff access for specified quantities of gold imported from the United Arab Emirates. Under this agreement, importers can benefit from concessional Basic Customs Duty (BCD) rates, making UAE-sourced gold more competitive in the Indian market.

Court-Mandated Reforms

Following a Delhi High Court order dated September 26, 2025, the DGFT was directed to broaden the TRQ allocation process. The court specifically emphasized making allocations more inclusive by extending opportunities to:

• Applicants without substantial turnover history but with significant networks
• First-time TRQ allocation seekers
• Smaller enterprises that were previously disadvantaged

In compliance with this directive, the current round exclusively targets Micro and Small Enterprises, ensuring wider participation and democratization of gold import benefits.

Eligibility Requirements

To participate in the e-auction, bidders must meet these mandatory criteria:

1. BIS Registration: Valid registration with the Bureau of Indian Standards for hallmarking
2. GST Compliance: Active GST registration with valid GSTIN
3. MSME Certificate: Valid Micro or Small Enterprise certification
4. Import Export Code: Valid IEC number
5. Exclusion: Gold Dore imports are not permitted under this TRQ

The Bidding Process Explained

Registration Phase: Interested parties must register on the MSTC portal (https://www.mstcecommerce.com/eprocn/dgft) with a Class III Digital Signature Certificate (DSC) of signing and encryption type.

Financial Requirements:

• Participation Fee: ₹5,000 plus GST
• Bid Security: ₹1,00,000 (refundable for unsuccessful bidders within 4 weeks)

Two-Stage Submission:

Technical Bid: Submission of all eligibility documents including GST registration, hallmark certificate, IEC, and MSME certification.

Financial Bid: Excel-based price bid comprising 101 price buckets ranging from ₹100,000 to ₹0 per kg, decreasing in ₹1,000 increments. Bidders specify quantities against their preferred price points.

Post-Allocation Process

Successful bidders must complete these steps within 15 days of TRQ quantity publication:

1. File TRQ application on the DGFT website
2. Pay the bid amount for allocated quantity
3. Failure to comply results in bid security forfeiture and disqualification for current and subsequent financial years

Strategic Implications

This tender represents a paradigm shift in India's gold import management:

Market Democratization: By restricting initial rounds to MSMEs, the government is fostering broader market participation and reducing concentration among large players.

Price Discovery: The competitive bidding mechanism ensures transparent price discovery, replacing previous allocation methods.

Bilateral Trade Strengthening: Optimal utilization of CEPA quotas strengthens India-UAE economic ties while providing cost advantages to Indian importers.

Industry Formalization: Mandatory BIS hallmarking registration reinforces the government's push toward standardization and consumer protection in the gold sector.

Critical Dates to Remember

• Bid Opening: December 29, 2025
• Bid Closing: January 2, 2026
• Technical Bid Evaluation: January 5, 2026
• TRQ Allocation: Second week of January 2026
• Payment Deadline: 15 days from allocation announcement

Risk Factors and Compliance

The DGFT has emphasized strict adherence to regulations:

• False information or misrepresentation leads to immediate disqualification
• Bid security forfeiture for non-compliance
• Potential debarment for fraudulent practices
• All communications must be through official DGFT channels only

Looking Ahead

While this initial round focuses on MSMEs, subsequent rounds are expected to follow with potentially different eligibility criteria and larger allocations. The DGFT will announce the schedule for future rounds after concluding the current allocation.

Conclusion

This e-auction mechanism represents India's commitment to transparent trade practices while honoring bilateral commitments under the India-UAE CEPA. For Micro and Small Enterprises in the gold industry, this presents an unprecedented opportunity to access preferential import tariffs and compete on a level playing field.

Eligible businesses should act swiftly to complete registration formalities, obtain necessary certifications, and prepare competitive bids before the January 2, 2026 deadline. With careful preparation and strategic bidding, MSMEs can leverage this opportunity to strengthen their position in India's dynamic gold market.

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For Queries:

• DGFT Helpdesk: 011-23038996, 011-23038796, 011-23038833
• MSTC Support: 011-65263075/76/77
• Official Portal: https://www.dgft.gov.in