Business & Investments

In light of surging gold prices and increasing travel by expatriates, the Indian Association of Sharjah has formally petitioned the Government of India to revise its existing customs regulations regarding the amount of gold that travelers may bring into the country. In a memorandum addressed to Finance Minister Nirmala Sitharaman, the association highlighted how current rules, established nearly a decade ago, no longer align with the realities of today’s gold market.
Current rules and the problem:
Under the present notification (dating back to 2016), female travellers are allowed to carry up to 40 grams of gold jewellery valued at Rs 100,000 (approximately AED 4,200), while male travellers are permitted 20 grams, with a value cap of Rs 50,000 (about AED 2,100).
When these regulations were drafted, the 22-carat gold price hovered around Rs 2,500 per gram (DH 104). Today, gold's market value has more than tripled, pushing the worth of 40 grams beyond DH 16,000 and 20 grams above DH 8,000. 
This discrepancy between permitted quantity, declared value caps, and actual market valuation is causing confusion and disputes at customs, especially for expats returning home with modest amounts of gold jewellery. The mismatch is also seen as placing undue financial burden on travellers, and creating room for inconsistent enforcement or even corrupt practices.
What the Indian Association of Sharjah is requesting:
To address these problems, the association is urging that the regulation be revised to reflect current gold prices. Specifically:

• Eliminate or adjust the value cap, which is now unrealistically low relative to actual gold market rates.
• Specify a fixed weight allowance of gold jewellery that applies regardless of gold’s market fluctuations.

These changes aim to reduce ambiguity, prevent disputes at customs checkpoints, and make the rules more equitable for travellers, especially those who carry gold as a conventional gift or personal ornament rather than luxury items.
Why this matters:
Expats form a large segment of India’s diaspora, many of whom travel back home periodically carrying gold, either as gifts or as part of cultural rituals. Outdated rules can lead to overpayment of duties, misunderstanding with customs authorities, or even confiscation in worst-case scenarios. For those with limited financial means, such issues can cause undue stress and expense.
Moreover, from a regulatory standpoint, having laws that are out of sync with market reality complicates enforcement. Customs officials may struggle to assess value appropriately, leading to inconsistent rulings. Travelers, likewise, may miscalculate what they are allowed and risk penalties. The association argues that revising the rules will ultimately benefit both sides.
As gold prices rise and global mobility increases, customs laws need to keep pace. The Indian Association of Sharjah’s request for clarification or reform is rooted in genuine concern, for fairness, transparency, and practicality. Whether the Indian government will amend the rules remains to be seen, but for many expats, even small tweaks (especially removing misleading value caps) would make a big difference.

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