Indian expat group in UAE calls to update India’s gold import rules

Sharjah: The Indian Association Sharjah (IAS), a leading Indian expatriate organisation in the United Arab Emirates (UAE), has petitioned the Indian government to update its gold customs regulations. The group highlighted difficulties faced by Non-Resident Indians (NRIs) travelling with personal gold jewellery.

The association formally appealed to India’s Finance Minister, Nirmala Sitharaman, urging the removal of value-based restrictions in favour of customs rules based solely on weight limits, as reported by Khaleej Times and Gulf News.

Current customs regulations

Indian nationals residing abroad for over 12 months can bring gold jewellery into India duty-free if carried in baggage (not worn). The limits are:

Men to carry up to 20 grams of gold jewellery, valued up to Rs 50,000, duty-free
Women to carry up to 40 grams of gold jewellery, valued up to Rs 100,000, duty-free

Set in 2016, these limits do not reflect the current gold prices, which have risen from around Rs 2,500 per gram to over Rs 9,000 per gram. This often causes genuine travellers to exceed value caps despite carrying modest amounts of jewellery.

According to data from the Dubai Jewellery Group, the price of 24-carat gold was Dirham 437.50 (Rs 10,489.76) per gram on Thursday evening, September 11. Prices of other gold variants were:

22-carat: Dh 405.00 (Rs 9,710.52)
21-carat: Dh 388.50 (Rs 9,314.91)
18-carat: Dh 333.00 (Rs 7,984.21)

Challenges faced by Indian expats at airports

Indian travellers frequently encounter confusion and delays during customs clearance. All inbound passengers must complete immigration and customs checks, and any goods exceeding duty-free limits must be declared under the Baggage Rules, 2016.

There have been reports of harassment and demands for bribes. The IAS cited the case of its Vice President, TK Pratheep, who was stopped at Kochi International Airport for carrying 30 grams of gold bangles.

“I declared everything honestly but was told to pay a bribe or a 35 per cent duty,” Pratheep told Khaleej Times. “I chose the legal route and paid Rs 107,000.”

In April, well-known Dubai-based businessman and Regal Group Chairman, Vasu Shroff, was detained at Jaipur International Airport over his personal Rolex watch valued at approximately Rs 3.5 million. Despite presenting proof of ownership, the watch was seized and returned only after formal intervention. He was reportedly held for over two hours without access to basic facilities, according to Khaleej Times.

Recent legal developments

In August, the Delhi High Court ruled in favour of a woman whose 100 grams of 24-carat gold bangles were seized at customs upon her return from Riyadh. The court determined the jewellery qualified as personal effects and criticised procedural lapses by customs officials, including the invalid waiver of the show cause notice and lack of a personal hearing.