India mulls quota-based duty cuts on gold imports to Switzerland under EFTA

Mar 6, 2024

Synopsis
Switzerland had sought duty concessions on inbound shipments of gold, which accounts for about 80% of India’s total imports from Switzerland. Quota based concessions to Switzerland are crucial as India has already extended 1% duty concession to gold importers under tariff rate quota in its trade pact with the UAE.

India is mulling giving quota-based duty concessions on gold imports from Switzerland under the proposed free trade agreement European Free Trade Association (EFTA) and has also sought an investment commitment of $50 billion in the first ten years after the implementation of the agreement and another $50 billion in the next five years, officials said.

Iceland, Liechtenstein, Norway, and Switzerland comprise the EFTA.

Switzerland had sought duty concessions on inbound shipments of gold, which accounts for about 80% of India’s total imports from Switzerland.

Quota based concessions to Switzerland are crucial as India has already extended 1% duty concession to gold importers under tariff rate quota in its trade pact with the UAE.

“Since the UAE already enjoys such concessions, it is important these are extended to EFTA in lieu of investment stability,” said an official.

At present, gold imports are subject to a 12.5% basic customs duty and a 2.5% cess. Gold imports grew 30% on-year to about $38 billion in April-January FY24.

[The Economic Times]