Abstract: New bounds on the electric dipole moment (EDM) of charm and bottom quarks are derived using the stringent limits on their chromo-EDMs. The new limits, vertical bar d(c)vertical bar < 1.5 x 10(-21) e cm and vertical bar d(b)vertical bar < 1.2 x 10(-20) e cm, improve the previous ones by about 3 orders of magnitude. These indirect bounds have implications for different models of new physics, including two-Higgs-doublet, leptoquarks, and supersymmetry models.