DUBAI: Non-Resident Indians (NRIs) living in the UAE say clearing Customs back home is sometimes problematic because of the strict controls and import duty on gold.
Under the rules, they can only bring in around Dh2,891 (Rs50,000) worth of gold if they are male or Dh5,782 (Rs10-, 000) if they are female.
In terms of jewellery, that roughly translates into a small chain or a maximum of one set of earrings, a necklace and two bracelets.
Anything that is over that value, up to a maximum of one kilo per passenger, invites a 10 per cent import duty, which is a record high.
However, NRIs flying back often carry gold — for personal use or as gifts worth more than Rs50,000-Rs100,000, which is the maximum duty-free allowance under India’s Central Board of Excise and Customs regime.
Tara, an Indian housewife in Sharjah, said: “I was forced to pay a Dh100 bribe at Mangalore airport because the officer insisted my gold value was more than the limit. If that was true, instead of charging the 10 per cent duty, why did he settle for just Dh100 to let me through Customs? It was just two bangles in the suitcase. Clearly, he wanted a bribe in exchange for not causing me trouble.”
A frequent issue that comes up is jewellery bought before weddings. Another housewife, Z.K., said. “I had to convince them the jewellery with me was not for sale in India. After much argument, they relented. They wrote down something in my passport describing the jewellery, which has to be shown again on my way back to Dubai,” she added. “It’s a hassle, why is the limit so low? Rs50,000 will only get you a ring.”
Those who refuse to agree to the evaluation of the gold to pay the duty can be asked to place the items in a safe locket at the airport, which can be collected on the way back. However, others said they have routinely passed through Customs with even half a kilo of gold without being stopped by officers.
India has put tight limits in place as part of measures to offset its falling currency. A weak rupee usually leads to an increased demand for gold, traditionally seen as a safe haven for investments and savings.