The Gold Tariff Rate Quota (TRQ) Allocation under India-UAE CEPA for FY 2025-26

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, Government of India, has issued Public Notice No. 39/2025-26 on December 17, 2025, outlining the procedure for the first round of allocation of Tariff Rate Quota (TRQ) for gold imports under tariff head 7108 as part of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for the financial year 2025-26. This blog provides a detailed overview of the process, eligibility criteria, and key highlights of the tender.

What is the Gold Tariff Rate Quota (TRQ) under India-UAE CEPA?

The India-UAE CEPA, effective from May 1, 2022, aims to strengthen bilateral trade relations between India and the UAE. As part of this agreement, India offers concessional Basic Customs Duty (BCD) on a specified annual quantity of gold imported from the UAE under the TRQ mechanism. This initiative promotes trade facilitation, ensures predictable import flows, and enhances economic engagement between the two nations.

For FY 2025-26, the DGFT has announced the allocation of 30 metric tons (MT) of gold under the TRQ mechanism in the first round of bidding. The Exim Facilitation Committee (EFC) reserves the right to extend the total allocation by an additional 50% (15 MT) if cumulative bids exceed the initial allocation.

Eligibility Criteria for Bidders 

To ensure a fair and broad-based allocation process, the DGFT has restricted participation in the current round to Micro and Small Enterprises (MSEs). Eligible participants must meet the following criteria:

BIS Registration: Applicants must be registered with the Bureau of Indian Standards (BIS) for hallmarking.
GST Registration: Applicants must hold a valid GST Identification Number (GSTIN).
Import Restrictions: Import of Gold Dore under TRQ is not permitted.
Maximum Allocation: Micro enterprises can bid for up to 10 kg, while small enterprises can bid for up to 25 kg.

Bidding Process

The TRQ allocation will be conducted through an e-auction on the MSTC portal. The bidding process involves the following steps:

1. Registration

Bidders must register online on the MSTC portal (https://www.mstcecommerce.com/eprocn/dgft).
During registration, bidders will create a user ID and password, which must be kept secure.
A valid Class III Signing and Encryption Digital Signature Certificate (DSC) is mandatory for bid submission.

2. Submission of Technical and Financial Bids 

The tender comprises two components: Technical Bid and Financial Bid.
Technical Bid: Bidders must upload required documents, including GST registration, hallmark registration, Import Export Code (IEC), and MSME certificate (if applicable). A participation fee of ₹5,000 plus GST and a bid security of ₹1,00,000 must be paid before submitting the bid.
Financial Bid: Bidders must download an Excel-based price bid template, fill in the quantity they wish to bid for against specific price buckets, and upload the completed file. Price buckets range from ₹100,000 to ₹0 per kg in steps of ₹1,000.

3. Evaluation and Allocation

Only technically qualified bids will proceed to the financial bid evaluation stage.
The EFC will allocate TRQ quantities to preferred bidders based on their financial bids, subject to the maximum eligible quantity for MSEs.

Key Dates

The tentative schedule for the tender process is as follows:

Bid Start Date: December 29, 2025
Bid Due Date: January 2, 2026
Technical Bid Opening: January 5, 2026
TRQ Allocation and Issuance by DGFT: Second week of January 2026

Important Guidelines for Bidders

Pre-Bid Conference: Potential bidders can seek clarifications or request additional information through the DGFT Helpdesk. Queries must be submitted at least three days before the bid start date.
Submission of TRQ Application: Successful bidders must file a TRQ application on the DGFT website and pay the bid amount within 15 days of the TRQ allocation announcement.
Bid Security: A bid security of ₹1,00,000 is required during the technical bid submission. This amount will be refunded to unsuccessful bidders within four weeks of the preferred bidder announcement.
Fraud Practices: Any fraudulent, coercive, or restrictive practices will lead to disqualification, forfeiture of bid security, and blacklisting for three years.

How to Prepare for the Tender Process

Understand the Tender Document: Familiarize yourself with the Public Notice, Trade Notice, Foreign Trade Policy (FTP) 2023, and Handbook of Procedures (HBP).
Conduct Market Research: Analyze prevailing gold prices in the international market to make informed bids.
Ensure Compliance: Verify that your business meets all eligibility criteria and prepare the required documents in advance.
Technical Setup: Install Java, PKI application, and a Class III Signing and Encryption DSC to ensure smooth participation in the e-auction.

Conclusion

The Gold TRQ allocation under India-UAE CEPA for FY 2025-26 is a significant opportunity for Micro and Small Enterprises to benefit from concessional duty rates on gold imports. By following the prescribed procedure and meeting the eligibility criteria, businesses can participate in the e-auction and contribute to strengthening India-UAE trade relations.

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Source: DGFT

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