Buying Gold Jewellery from Dubai

Have you always believed that gold is cheaper in Dubai? Well, if you were to go merely by the sticker price of the yellow metal, you might be right. But there’s a lot more to it. Enough to make you think twice about buying gold in the emirate and bringing it back to India.

🔸 Hefty Labour Cost:

The making charges in India would be about 7% of the overall jewellery cost(because of cheap labour) But in Dubai, these charges can go up to 25%

🔸Currency Conversion Charges:

For those travelling to Dubai as tourists and picking up gold jewellery during the trip, currency conversion charges will also be applicable. Rupee conversion to Dirhams would cost 2.8-3.5 percent, based on the mode of forex payment.

🔸 Quantity restrictions

Indian customs norms also place restrictions on Indian passengers carrying gold back into the country.

- Returning male passengers can bring up to 20 grams of gold jewellery, not exceeding Rs 50,000, while female passengers are allowed to bring home double the amount.

🔺But here’s the dampener: You need to have resided in Dubai for at least a year if you want to bring purchased jewellery into India.

➡️This also means that if you visit Dubai on a holiday (for a few days or even months), you cannot buy jewellery and come back.

If caught, you might be required to pay the customs duty of 36.05 percent, an import duty of 15 percent, and also face penal action. Your jewellery, too, could be confiscated if you fail to provide valid supporting documents about your gold’s weight, purity and source.

➡️Crux: If you’re going to buy physical gold for auspicious occasion, don’t assume that you’ll save money if you buy it from dubai. The net effective price you got will be much more than India.

Source: Moneycontrol, CBIC, careinsurance
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