The game-changing Comprehensive Economic Partnership Agreement (CEPA) signed between India and the United Arab Emirates (UAE) last week, though widely expected to give a big boost to the gems and jewellery sector among others in the country, is unlikely to bring down smuggling of gold from the Gulf Cooperation Council (GCC) nation.
Under the free trade pact, India has set a lower tariff rate quota of 2% for up to 200 tonnes of gold imported from the UAE. At present, gold attracts 10.5% customs duty, including Agriculture Infrastructure Development Cess and Social Welfare Surcharge.
