Precious Pause: India Restricts Gold, Silver, Platinum Imports To Plug FTA Loopholes

On April 2, 2026, the government revised the import policy for items under Customs Tariff Heading 7113 (covering jewellery and articles of gold, silver, and platinum) from “Free” to “Restricted.” This means importers will now require prior approval or a license, with exemptions only for export-oriented units and SEZs.

Reason Behind The Ban

Officials explained that traders were misusing FTAs by routing precious metal articles through partner countries to take advantage of lower duties. This practice was distorting domestic markets and undermining revenue. The restrictions are designed to plug loopholes and protect India’s trade balance.

Implementation Details

The DGFT notification makes clear that the restrictions apply irrespective of prior contracts, letters of credit, or advance payments. Transitional arrangements will not be allowed, ensuring immediate compliance.

Key Highlights

•⁠  ⁠Import of all gold, silver, and platinum articles now restricted

•⁠  ⁠Prior approval or license required for imports

•⁠  ⁠Exemptions apply only to SEZs and export-oriented units

•⁠  ⁠Restrictions effective immediately, overriding existing contracts

•⁠  ⁠Aim is to curb misuse of FTAs and protect domestic trade

What It Means For Traders And Consumers

For traders, the move increases compliance requirements and may raise costs for imported jewellery. For consumers, the impact could be higher prices in the short term, but the government hopes to stabilize domestic markets by reducing unfair competition.

Sources: India.com, The Hindu BusinessLine, Rediff.com, Times of India, Times Now