Gold, silver jewellery imports now under ‘Restricted’ category in India - here's all you need to know

The rules of the game have changed - and this time, there’s no slow transition. In a sudden move, the Indian government has put an end to the free import of gold, silver, and platinum jewellery.The Directorate General of Foreign Trade (DGFT) made it official this week, shifting these imports - specifically under Customs Tariff Heading 7113 - from the “Free” category to “Restricted.” For traders, that’s a big deal. What used to be a relatively smooth process now comes with paperwork, approvals, and government clearance.In simple terms, you can’t just import jewellery anymore. You need prior permission or a specific license before anything enters the country.

A Hard Stop with Zero Wiggle Room

Usually, when policies like this come in, there’s some breathing space. A grace period. Time for businesses to adjust.Not this time.The rule kicked in immediately, with no exceptions. It doesn’t matter if deals were already signed, payments were made, or shipments are already on the way. Even cargo that’s mid-transit will fall under the new rules the moment it arrives.The DGFT has made it clear - there are no transitional relaxations here.

Plugging the FTA Loophole

So why such a sudden crackdown?It all comes down to misuse of Free Trade Agreements (FTAs), especially the India-ASEAN pact. Authorities noticed that some traders were routing precious metals through countries like Thailand and declaring them as jewellery to avoid higher import duties on raw gold and silver.It was a clever workaround - but also a costly one for the government.By shifting imports to the “Restricted” category, that loophole is essentially shut.

Who Gets a Pass?

This isn’t a complete shutdown for everyone.Businesses operating in Special Economic Zones (SEZs) are exempt. The same applies to 100% Export Oriented Units (EOUs). Imports tied to government-approved export schemes for the gems and jewellery sector are also allowed to continue without restrictions.So the focus is clear—this move targets domestic misuse, not genuine export-driven businesses.

The Market Reacts

Across jewellery hubs, the reaction is mixed.On one hand, many in the industry understand why this step was needed. No one wants unfair practices to hurt legitimate businesses.But on the other hand, there’s concern. A lot of it.The biggest worry right now is delays. Traders fear getting stuck in long approval processes and bureaucratic hurdles. The hope is that the government keeps the licensing system smooth and efficient—because if it doesn’t, even honest businesses could end up struggling just to keep things running.For now, the message is clear: the easy import days are over.