passengers flying into India will need to declare any gold jewellery valued at Rs10,000 (Dh592)

The newly enacted requirement that passengers flying into India will need to officially declare any gold jewellery valued at Rs10,000 (Dh592) and more could be a disincentive for the UAE and Gulf’s jewellery trade.

While the requirement does not immediately invite any new customs duties, it does create a layer of paperwork for expat Indians which will have them thinking long and hard about taking gold jewellery back to their home country.

“Indian authorities are effectively trying to de-link the Dubai jewellery trade’s status as a major source of the merchandise that is brought to India by expatriates,” said Cyriac Varghese, general manager at Sky Jewellery.

Some market sources worry that the customs form requirements could also be used as a tool for ‘harassment’ by customs officials if they so choose. As such, India already had in place a requirement that a woman passenger can only bring in gold and jewellery valued at Rs100,000 if customs duty was to be avoided. For a man the value is Rs50,000.