Govt restricts imports of some gold jewellery articles

On Wednesday, the government took a step to regulate the import of specific gold jewelry and articles by imposing restrictions. The directorate general of foreign trade (DGFT) issued a notification altering the import policy for unstudded gold jewelry and other gold articles from “free” to “restricted.”

This alteration implies that obtaining a license from the government will be mandatory for importing these goods. However, imports falling under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) tariff rate quota (TRQ) do not require such permission.

The DGFT clarified, “Import under a valid India-UAE CEPA TRQ shall be permitted freely without any import license.”

Industry insiders explained that these restrictions were prompted by an increase in imports from Indonesia under the India-ASEAN free trade agreement. Some gold articles were being brought in duty-free and subsequently melted in India for jewelry production.

In the initial months of the fiscal year 2023-2024 (April-May), India imported these products valued at $112.09 million, with $76.28 million originating from Indonesia.

Gold imports are subject to a 15% duty. Notably, imports of pearls, precious stones, and semi-precious stones saw a decline of 25.36%, totaling about $4 billion, during the April-May period of this fiscal year. Additionally, gold imports decreased by around 40%, amounting to $4.7 billion during the same period.