Government Imposes Import Curbs on Gold and Silver Jewellery with Immediate Effect

The Indian government has imposed new import restrictions on gold, silver, and platinum jewellery, as per news reports.  

This action, effective immediately, aims to prevent misuse of Free Trade Agreements (FTAs) by importers exploiting duty advantages. 

New Import Restrictions Announced 

On April 1, 2026, the Directorate General of Foreign Trade (DGFT) altered the import policy for items listed under customs tariff heading 7113.  

Previously classified as 'Free', these items are now labelled as 'Restricted', requiring importers to obtain permission or a licence from the DGFT.  

The curbs take effect regardless of existing contracts, irrevocable letters of credit, advance payments, or other commitments. 

Exemptions and Special Zones 

Import exemptions apply to 100% Export Oriented Units and units in Special Economic Zones (SEZs). Furthermore, jewellery imports intended for export under certain schemes will avoid these restrictions.  

This strategic move follows earlier restrictions on platinum and silver jewellery imports. 

Addressing Misuse of FTAs 

FTAs, like India's pact with the ASEAN bloc, have been exploited by some traders. This legislation seeks to prevent duty evasion via jewellery imports from countries like Thailand.  

As per news reports, instances of importers declaring finished jewellery as unstudded to bypass tariffs, undermining local markets. 

Read More: ATF Prices Raised Across Metros from April 1: Hike Moderated for Domestic Airlines! 

Industry Reactions and Licensing Procedures 

Industry representatives express concern over potential disruptions for genuine traders, urging streamlined licensing procedures. The government looks to balance preventing misuse while supporting legitimate trade activities. 

Conclusion 

The imposition of import restrictions on jewellery aims to curb misuse of FTAs and protect the domestic market from unfair competitive practices. These new controls highlight the government's commitment to monitoring trade agreements closely while maintaining a balanced trade environment. 

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