Govt Tightens Curbs On Gold, Silver & Platinum Jewellery Imports To Prevent FTA Misuse

Importers will now be required to obtain a licence or permission from the DGFT for such imports. The notification clarified that the restrictions will apply with immediate effect, regardless of existing contracts, advance payments, letters of credit or shipment status. Transitional arrangements will not be allowed. Exemptions for Export-Oriented Units Imports by 100 per cent Export Oriented Units (EOUs) and units operating in Special Economic Zones (SEZs) have been exempted from these restrictions. Additionally, imports under export-linked schemes for the gems and jewellery sector will continue to be allowed. Curbing FTA Misuse The decision follows concerns over alleged misuse of trade agreements, particularly the India–ASEAN FTA. Industry sources indicated that some importers were exploiting duty differentials by routing imports of precious metals as jewellery from countries such as Thailand. The measure is aimed at tightening trade controls and protecting domestic industry, while maintaining export-oriented channels for the gems and jewellery sector. India has had a goods trade agreement with the ASEAN bloc since 2010. Industry View While supporting the intent to curb misuse, industry representatives have called for a simplified licensing process to ensure that genuine importers are not adversely affected. Policy Continuity The latest move builds on earlier restrictions imposed on select platinum jewellery imports in November 2025 and silver jewellery in September 2025, reflecting a broader effort to regulate inflows of precious metals. (KNN Bureau)