Indian expats in UAE call to update outdated duty-free gold allowance to India

Sharjah: Indian expats in the UAE are urging the Indian government to update outdated customs duty regulations on gold jewellery, citing confusion and ongoing harassment of travellers at Indian airports.

The call comes from the Indian Association Sharjah following persistent difficulties faced by Non-Resident Indians (NRIs), despite Delhi High Court directives aimed at preventing harassment of genuine travellers carrying personal gold jewellery.

The association’s petition highlights an ambiguity in Customs Baggage Declaration Regulations (Notification No. 31/2016-Customs) regarding the permissible allowance of gold ornaments for NRIs who have been living abroad for over a year.

Current rules allow a female passenger to carry up to 40 grams of gold jewellery and a male passenger up to 20 grams, subject to value caps of Rs100,000 and Rs50,000 respectively.

For gold above these limits, customs duty is applicable. Passengers should carry purchase invoices for the gold and declare excess gold at the Red Channel to avoid penalties.

The petition addressed to the Indian Finance Minister Nirmala Sitharaman pointed out that when the rule was last updated in 2016, gold cost around Rs2,500 per gram. Today, 22-carat gold is valued at approximately Rs7,180 per gram, making the existing caps unrealistic and prone to disputes at airports, it said.

In fact, current market rates can go over Rs10,00 per gram.

The petition highlighted that Indian expats are increasingly facing hardships due to the outdated value cap. “The mismatch between the stipulated value and the present market reality often leads to unnecessary disputes at customs checkpoints, inconvenience for genuine travellers and regrettably, it also opens the door for corrupt practices,” it said.

Earlier this year, veteran Indian expat businessman in Dubai, Vasu Shroff, had complained of harassment by customs officials at Jaipur International Airport in the  northwestern Indian state of Rajasthan. The incident, involving a personal Rolex wristwatch, had triggered widespread concern and anger among the Non-Resident Indian (NRI) community.

The Indian Association Sharjah took up the outdated gold customs rule after its vice president, TK Pratheep, faced a stressful experience at Kochi International Airport in the south Indian state of Kerala.

Speaking to Gulf News over the phone from Kerala on Wednesday night, Pratheep narrated the incident.

“I arrived from Abu Dhabi at 7.30pm on Tuesday. I was carrying two gold bangles weighing a total of about 30 grams as a gift for my niece’s wedding,” he said.

“During screening, I explained it was a personal gift. The official, who spoke to me in Malayalam, initially demanded Rs17,000, and when I questioned it, he became hostile. I was told to wait for another officer who might only speak Hindi.”

“Even though I told him that I know Hindi and English and have been a businessman for 25 years and the current vice president of IAS, the questioning continued, and my frequent travel was scrutinised as if I were smuggling gold. When I gave him proper reasons for my travels, he lowered the rate to Rs10,000. When I asked for giving a reason in writing and the receipt, he refused,” Pratheep alleged.

He said he even tried to resolve the matter by offering to declare the jewellery. “I said I was ready to declare the item and could take it back with me when I return, but it was not paid heed to.”

He said the second officer, who came on duty in the next shift, explained the rule and calculated customs duty at Rs107,000 based on the invoice of Dh12,000.

“I offered to pay if they issued a receipt, which he agreed to. It took until 9:30pm for me to make the payment and leave the airport. The attitude made me feel like a criminal, not a genuine traveller.”

Pratheep also pointed out the inconsistency in rules, which he termed “funny:” “According to the outdated regulation, I could carry 20 grams of gold worth Rs50,000. But officials calculated duty using current market rates.”

The petition requests that the value caps be removed, allowing passengers to carry the stipulated weight of gold regardless of market price fluctuations.

Nissar Thalangara, president of the Indian Association Sharjah, who signed the petition, said such a change would ease difficulties for travellers and reduce unnecessary burdens on customs officials.

He urged the finance minister to update the law, noting that implementing a system aligned with the intent of allowing the specified weight of gold ornaments, irrespective of gold price fluctuations, would provide relief to both air travellers and authorities.