Government Imposes Import Restrictions on Precious Metals

Government Imposes Import Curbs on Gold, Silver, and Platinum Articles

The Indian government has taken a significant step to curb the misuse of free trade agreements (FTAs) by imposing restrictions on the import of all forms of articles made of gold, silver, and platinum. The Directorate General of Foreign Trade (DGFT) announced the move in a notification, which will be effective immediately.

The import curbs will be applied regardless of any prior contract, irrevocable letter of credit, advance payment, shipment status, or any other commitment. The benefit of transitional arrangements will not be available to importers. The restrictions are aimed at checking the misuse of FTAs, which has been a growing concern for the government.

The import policy and policy conditions of items covered under Chapter 71 have been revised, which includes natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, articles, imitation jewelry, and coins. The government had previously imposed curbs on gold, platinum, and silver jewelry imports on April 1.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Industry officials have expressed concerns that the move may affect genuine players, as some importers were misusing the India-Asean FTA to make a quick buck by exploiting duty differentials and circumventing tariffs. The government has been accused of allowing imports of precious metals in the name of unstudded jewelry from countries like Thailand.

The government's decision to impose import curbs on all gold, silver, and platinum jewelry is a significant step towards curbing the misuse of FTAs. The move is expected to have a significant impact on the import of precious metals in the country.