The Directorate General of Foreign Trade announced in a statement that imports of some types of gold jewellery had been restricted. The previously specified fine jewellery products will now require a government permit unless they are imported in accordance with the requirements of the Comprehensive Economic Partnership Agreement between India.
The Directorate General of Foreign Trade’s notification, as reported by the Economic Times, lists pearls, gold jewellery set with diamonds, and precious and semi-precious stones among its jewellery product categories. Although there was a 15% import duty, these products were previously categorised as “free”.
“However, import under a valid India-UAE CEPA Tariff Rate Quota shall be permitted without restricted import authorization,” the Directorate General of Foreign Trade noted in a notice obtained by ET Bureau. The increase in gold jewellery imports from Indonesia may have led to the Directorate General of Foreign Trade tightening import restrictions on jewellery.
Industry insiders told the Economic Times that gold items were being shipped from Indonesia to India, where they were melted down and used to produce jewellery. A government authorization would be necessary, which would discourage businesses from doing this kind of thing.
