India has imposed restrictions on the import of certain studded gold jewelry and items.
The Directorate General of Foreign Trade (DGFT) of the Ministry of Commerce and Industry of India has upgraded gold jewelry containing pearls, diamonds, precious and semi-precious stones to the 'restricted' category from 'free', which means they need to have government permission to import them.
An exception is made for jewelry items covered by the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
“Imports under CEPA tariff quotas in effect between India and UAE shall be allowed without import licenses,” the DGFT notification said.
Gold imports are subject to a 15% custom duty. Industry officials said the restrictions were imposed in light of rising imports from Indonesia under the India-ASEAN free trade agreement, under which some gold items were imported duty-free and melted down in India to make jewelry.
The move will also discourage the import of these goods from Tanzania.
The General Administration of Foreign Trade issued a further clarification regarding the re-importation of unsold jewelry exported for exhibitions. “Re-import of unsold jewelry exported for exhibitions under certain ITC (HS) customs codes will be allowed by the customs authorities without the need for import licenses,” the DGFT directive stated. “This is subject to compliance with all applicable customs regulations.”
Last July, the DGFT, in the interest of local manufacturers and to boost exports, imposed restrictions on the import of gold jewelry without precious stones. As now, imports were exempted from tax under the India-UAE CEPA Agreement.
India's gold imports increased by 30% to $45.54 billion in 2023-24, according to government data.
Hélène Tarin, Editor in Chief of the Asian Bureau, Rough&Polished
