In a decisive move to regulate inflows of precious metal jewellery, the Indian government has introduced immediate restrictions on the import of gold, silver, and platinum jewellery. The step is aimed at addressing growing concerns around the misuse of free trade agreements (FTAs).
Under the revised policy, items classified under Customs Tariff Heading (CTH) 7113—covering articles of precious metal jewellery—have been shifted from a “Free” to a “Restricted” category. This means importers will now require prior approval or licensing from the Directorate General of Foreign Trade (DGFT) to bring such goods into the country.
Notably, the restrictions apply universally, regardless of existing contracts, advance payments, shipment status, or letters of credit. The government has also clarified that no transitional provisions will be offered, reinforcing the immediate nature of the directive.
However, certain sectors remain unaffected. Units operating under 100% Export Oriented Units (EOUs) and those based in Special Economic Zones (SEZs) are exempt from these curbs. Additionally, imports tied to export-oriented schemes within the gems and jewellery sector will continue without restrictions.
The move follows concerns that some traders were leveraging FTAs—particularly with ASEAN nations—to exploit duty differences. By routing imports as plain jewellery from countries like Thailand, they were reportedly bypassing higher tariffs.
While the intent is to plug regulatory gaps and control unchecked imports, industry voices have highlighted the need for a streamlined licensing process to ensure that compliant businesses are not adversely impacted.