India Restricts Imports of Gold, Silver, and Platinum Jewellery to Curb FTA Abuse

The Indian government announced immediate restrictions on the import of gold, platinum, and silver jewellery on Wednesday, a measure designed to prevent the abuse of free trade agreements (FTAs).

According to a notification from the Directorate General of Foreign Trade (DGFT), these curbs will apply regardless of any existing prior contracts, irrevocable letters of credit, advance payments, shipment status, or other commitments. Consequently, the benefit of any transitional arrangements will not be available. The import policy for items under Customs Tariff Heading (CTH) 7113, which covers articles of gold, silver, and platinum jewellery, has been revised from 'Free' to 'Restricted' with immediate effect. Importers of these goods must now obtain explicit permission or a license from the DGFT.

This action means that all imports of gold, silver, and platinum jewellery are now subject to restrictions. However, the notification specifies that imports by 100 per cent Export Oriented Units and units located in Special Economic Zones (SEZs) are exempt from these new rules. Furthermore, imports conducted under the schemes for the export of Gems and Jewellery, as outlined in the foreign trade policy, will also not be subject to these restrictions.

An industry official explained that some importers were misusing the India-Asean Free Trade Agreement. The official called on the government to ensure the licensing procedure remains straightforward to avoid harming legitimate traders. India's goods free trade pact with the 10-nation ASEAN bloc has been in effect since 2010. This follows previous temporary curbs; restrictions on certain platinum jewellery were imposed last November until April this year, and similar measures on silver jewellery were enacted in September 2025 until March this year.

The official noted that some traders attempted to exploit duty differentials and circumvent tariffs by using the FTA to make quick profits. The move specifically targets the practice of importing these precious metals under the guise of unstudded jewellery from countries like Thailand.