DGFT opens 30-tonne import quota under tariff head 7108
Following the October decision to shift to a competitive bidding route, the Directorate General of Foreign Trade (DGFT) has opened a 30-tonne quota under tariff head 7108. The move marks a clear step toward allocating imports of gold-related products via market-driven bidding rather than previous allotment systems.
What this change means
- Competitive allocation: Import rights for the 30 tonnes will be distributed through bids, which aims to make the process more transparent and market-oriented.
- Tariff head 7108: This classification covers gold in unwrought or semi-manufactured forms—items typically used by jewellers and bullion dealers.
- Market impact: By introducing competition for import slots, authorities expect better price discovery and potential revenue gains for the exchequer.
Who will be affected
- Jewellery manufacturers and traders who rely on imported gold for production.
- Domestic bullion dealers and banks involved in import and distribution.
- Smaller players who may find competitive bidding challenging compared with larger participants with deeper pockets.
What to watch next
Stakeholders will be watching the bidding schedule, eligibility criteria, and the reserve prices set by authorities. These details will determine whether the new system eases supply pressures and stabilises domestic gold prices or raises costs for some market participants.
The shift to competitive bidding is meant to bring clarity and efficiency, but its impact will depend on implementation details and the response from traders and importers in the weeks ahead.