India Restricts Gold, Silver, Platinum Jewellery Imports To Curb FTA Misuse

Fri Apr 03 2026

The government has imposed immediate restrictions on the import of gold, silver and platinum jewellery, tightening controls to address alleged misuse of free trade agreements (FTAs).

In a notification issued by the Directorate General of Foreign Trade, the import policy for items under Customs Tariff Heading (CTH) 7113 has been revised from ‘Free’ to ‘Restricted’. The category covers articles of jewellery made from precious metals, meaning importers will now require prior approval or licences for shipments.

The notification makes clear that the restrictions will apply regardless of existing contractual obligations, including irrevocable letters of credit, advance payments or goods already in transit. It also states that transitional arrangements will not be available, signalling a strict and immediate enforcement stance.

With this move, all imports of gold, silver and platinum jewellery fall under licensing requirements, marking a broader tightening of the regulatory framework governing precious metal inflows.

However, certain exemptions have been retained. Imports by 100 per cent Export Oriented Units (EOUs) and units operating within Special Economic Zones (SEZs) will not be subject to these restrictions. Additionally, shipments under export-linked schemes for the gems and jewellery sector will continue to be allowed.

Industry participants said the decision is aimed at addressing instances where traders allegedly exploited duty differentials under the India–ASEAN Free Trade Agreement. Concerns had been raised over imports routed through countries such as Thailand under the classification of unstudded jewellery to bypass higher duties.

While acknowledging the intent to curb misuse, industry voices have called for a streamlined licensing process to ensure legitimate importers are not adversely affected. The latest curbs follow earlier, time-bound restrictions imposed on platinum and silver jewellery imports in 2025, indicating a continued policy focus on regulating inflows in the precious metals segment.

Source: https://www.businessworld.in/