India gets duty-free access to UAE's gems, jewellery market

News Network
February 19, 2022

New Delhi, Feb 19: The domestic jewellery sector will get a huge export boost in the United Arab Emirates (UAE) market as it would get duty-free access there, while the gulf nation will get greater access to the gold market here as India will give duty concessions on import of up to 200 tonnes, Commerce Secretary B V R Subrahmanyam said on Saturday.

India has agreed to concessional import duties on gold imports of up to 200 tonnes per year. India imported about 70 tonnes of gold from the UAE in 2020-21.

"We are a major importer of gold. India imports about 800 tonnes of gold every year. In this particular agreement, we have given them (UAE) a TRQ (tariff rate quota) of 200 tonnes where the tariff (or import duty) in perpetuity will be one per cent less than whatever is the tariff charged for the rest of the world.

"Therefore, the UAE has a one per cent price advantage in gold bars. That one per cent tariff difference means those 200 tonnes will be diverted to the UAE," the secretary told reporters here.

He said the biggest gain for India is "that we get zero duty access" to the UAE market for domestic jewellery. There was a five per cent duty on Indian jewellery and now, "it's gone to zero", so the gem and jewellery sector is "gung-ho", he added.

TRQ is a quota for a volume of imports that enter India at specified tariffs. After the quota is reached, a higher tariff applies on additional imports. TRQ would also be there for copper, polyethylene and polypropylene. India and the UAE on Friday signed a comprehensive economic partnership agreement (CEPA), under which a number of domestic goods will get zero duty access to the UAE market.

The pact may come into force in April or May. India and the UAE on Friday signed a comprehensive economic partnership agreement (CEPA), under which a number of domestic goods will get zero duty access to the UAE market.

When asked about the inclusion of the digital trade chapter in the agreement, the secretary said that for the first time, this sector is there in the trade agreement signed by India and it shows that India is ready to talk on this bilaterally.

"There will be a lot of harmonisation in regulatory standards on how you manage digital trade between India and UAE… We (India) are discussing digital trade or e-commerce with the European Union, Australia, UK and Canada," he said.

Explaining the chapter, Joint Secretary in the department of commerce Srikar Reddy said that this is a "best endeavour" chapter where the dispute settlement mechanism will not apply. "We are focusing on how to harness the future economic growth opportunity that digital trade provides. "We are focusing on how to harness the future economic growth opportunity that digital trade provides.

"We have provisions in the chapter regarding paperless trading, consumer protection, unsolicited commercial electronic messages, personal data protection, cross border flow of information and cooperation of digital products and electronic payments," Reddy said. Norms for customs duties on electronic transmission are linked with the current moratorium, which is there in the World Trade Organization (WTO).

Talking about the safeguard mechanism present in the India-UAE agreement, the secretary said there is a permanent safeguard mechanism that will kick in if there is any sudden surge in imports. He added that the agreement also has the "most stringent" rules of origin (ROO) and value addition norms.

Generally, value addition is in the range of 30-35 per cent. But, in this pact, it is broadly 40 per cent barring gold and a couple of other high-value items. "Trade diversion is not going to happen because of these stringent value addition norms," he added.

The "rules of origin" provision prescribes for the minimal processing that should happen in the FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain the dumping of goods.

To protect sensitive sectors, India has kept certain segments out of the ambit of this agreement. These include dairy, fruits, vegetables, cereals, tea, coffee, sugar, food preparation, tobacco, petroleum waxes, coke, dyes, soaps, natural rubber, tyres, footwears, processed marbles, toys, plastics, scrap of aluminium and copper, medical devices, TV pictures, auto and auto components and sectors under the production-linked incentive scheme.

It is a comprehensive agreement. It covers goods, services, ROO, SPS (sanitary and phytosanitary), TBT (technical barriers to trade), dispute settlement and trade facilitation.

"These are standard parts of an FTA but we are now into a new age FTAs. This is the first time that we are getting into digital trade, government procurement, IPRs (intellectual property rights).

"These are the areas where India was traditionally diffident upon engaging with multilateral or bilaterally. I think (now) it shows maturity and the confidence that we are going ahead and signing (agreements with these chapters)," he said.

These chapters, he said, might be small but they set the path, trend and tone, and it conveys the sense of India's desire to be a large global player in many fields, he said. 

The comprehensive free-trade agreement signed between India and the UAE will help the two-way commerce reach the USD 100-billion mark in over five years and create about 10 lakh jobs in sectors such as apparel, plastic, leather and pharma.

Under the pact, the UAE is opening the market for 90 per cent of Indian goods at zero duty and in five years time, it would reach 99 per cent. Similarly, India would give zero duty market access to 80 per cent of their exports and in ten years time, it would go up to 90 per cent.

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News Network
November 21,2024

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After the US prosecutors charged Gautam Adani with bribery and fraud, Congress reiterated its call for a Joint Parliamentary Committee (JPC) probe into the transactions of the Adani group, and hit out at Prime Minister Narendra Modi, alleging an "internal nexus" between him and "his favourite businessman."

Senior Congress leader Jairam Ramesh said the indictment of Gautam Adani and others by the US Securities and Exchange Commission validates his party’s call for a Joint Parliamentary Committee investigation.

The Congress has been pushing for the probe since January 2023, raising concerns over alleged irregularities involving Adani and his business dealings, said Ramesh.

Ramesh referred to the party’s “Hum Adani ke Hain” series, where 100 questions were raised about the alleged scams and the links between Prime Minister Narendra Modi and Gautam Adani.
He noted that the questions remain unanswered, reiterating the need for accountability in the matter.

The US prosecutors have charged Adani with deceiving investors by concealing information about his firm's solar energy project in India, which allegedly involved bribery.

Adani has been charged with securities fraud and conspiracy, according to an indictment unsealed on Wednesday. The case focusses on an agreement between Adani Green Energy Ltd. and another organisation to supply 12 gigawatts of solar power to the Indian government.

'BETRAYAL OF INDIAN INVESTORS'

Congress leader Pawan Khera described the allegations against Gautam Adani and his conglomerate as a “betrayal of Indian investors.”

Taking to X, Khera outlined the US charges, including claims that Adani’s group bribed Indian government officials between 2020 and 2024 to secure contracts. Citing media reports, he also pointed out that Gautam Adani personally met a government official to advance the scheme.

Khera referred to a March 2024 incident where the Adani Group allegedly misled the Bombay Stock Exchange and the National Stock Exchange, calling it a “grave violation of investor trust.”

He further highlighted a March 2023 FBI raid on the premises of Sagar Adani, Gautam Adani’s nephew, where electronic devices were seized as part of the investigation.

'SEBI NOT ABLE TO PROVE ANY CHARGES AGAINST ADANI'

Shiv Sena (UBT) leader Priyanka Chaturvedi criticised central probe agencies following US charges against Gautam Adani and others in an alleged bribery case linked to solar energy contracts.

Chaturvedi raised concerns about corporate governance and regulatory oversight in the country. “They talk about corporate governance, responsibility, and accountability. The industrialists should be asked to follow the rules and regulations, but even the agencies were defending him. The SEBI has not yet been able to prove charges against him,” she said, pointing to what she viewed as failures in ensuring accountability.

'BROUGHT DISREPUTE TO INDIA'

On US charges against Gautam Adani, AAP leader Sanjay Singh called for a probe against the industrialist. He said that the probe should be conducted by an investigation agency under the Supreme Court.

"Adani Group has brought disrepute to India. This is a very serious matter. The PM of India should come forward and answer this. All the pending matters against Adani should be probed by an investigation agency under Supreme Court monitoring, and all the corruption done by him, within and outside the country, should come out before the country and action should be taken against him," he said.

BJP DFENDS

BJP IT cell chief Amit Malviya responded sharply to the Opposition’s criticism regarding allegations involving Adani Green Energy and US-based Azure Power. He pointed out that the charges in the indictment are only allegations and emphasised, “The defendants are presumed innocent unless and until proven guilty.”

Malviya argued that the crux of the case concerns agreements to supply 12 GW of power to the Solar Energy Corporation of India (SECI), contingent on SECI securing power purchase agreements with state electricity distribution companies (SDCs).

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News Network
November 15,2024

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Iran’s Islamic Revolution Guards Corps (IRGC) has killed or captured 69 terrorists linked to the Israeli spy agency Mossad during a major counterterrorism drill in the country's southeast, its spokesman says.  

General Ahmad Shafaei, the spokesman for the “Martyrs of Security” drill, said Friday that a total of 23 terrorists have been killed and another 46 arrested in various clean-up operations ever since the IRGC Ground Force launched it in the Sistan and Baluchestan province on November 1.

Seven terrorists have also turned themselves in during the period.

“The undeniable fact about terrorists is that they rely on arrogant powers, particularly the intelligence service of the wicked and vicious Zionist regime," Shafaei said.

“Unfortunately, weapons and munitions at terrorists’ disposal are among the most sophisticated ones in the world. This accounts for their heavy dependence.” 

The official stated that several members of the disbanded terror teams were non-Iranian nationals, who had been hired by foreign intelligence agencies to carry out acts of sabotage and terror inside Iran.

In a most recent operation, six terrorists were arrested and four others were eliminated, three of whom were non-Iranians, he added. 

On October 26, ten members of Iran's law enforcement forces were killed in a terrorist attack in the Gohar Kuh district of Taftan in the Sistan and Baluchestan province.

The so-called Jaish al-Adl terrorist group claimed responsibility for the assault, which was one of the deadliest in the province in recent months.

The group has carried out numerous terrorist attacks in Iran, primarily in Sistan and Baluchestan.

Its tactics include the abduction of border guards as well as targeting civilians and police stations within the province to incite chaos and disorder.

In January, Iran launched a military operation during which the headquarters of the Pakistan-based terrorist group was targeted in missile strikes, destroying its infrastructure.

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News Network
November 18,2024

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Mangaluru: The Ullal police have arrested Manohar, the owner of Vazco Beach Resort, and its manager Bharath in connection with the drowning of three college girls from Mysuru at the resort’s swimming pool on November 17.

City Commissioner of Police Anupam Agrawal confirmed the arrests, stating that a case has been registered under Section 106 of BNS. The bodies of the victims, all in their twenties, have been handed over to their parents. The women had arrived at the resort for a weekend getaway on November 16.

Following the tragic incident, the resort was sealed by officials led by Mangaluru Assistant Commissioner Harshavardhan. The trade license of the resort, issued on June 13, 2024, has been suspended, and the tourism department has temporarily revoked the resort's registration. These actions prohibit the resort from engaging in any tourism-related activities until further notice.

Someshwara TMC Chief Officer stated that the suspension was due to the resort's failure to implement adequate safety measures, which resulted in the loss of three lives. Further investigations are underway.

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