India Tightens Platinum Jewellery Import Rules to Curb FTA Misuse

The Indian government has imposed restrictions on the import of certain platinum jewellery to curb misuse of free trade agreements, particularly with ASEAN nations like Thailand. The new policy requires importers to obtain a licence from the DGFT, aiming to control tariff circumvention.

The Indian government has announced new restrictions on the importation of specific types of platinum jewellery, effective immediately and lasting until April 2026. The measure aims to curb the misuse of free trade agreements, especially those with ASEAN members like Thailand.

Previously, in September, the government had imposed similar restrictions on silver jewellery, valid until March 31 next year. These actions are intended to prevent traders from exploiting free trade agreements to avoid tariffs, particularly by importing unstudded jewellery.

The Directorate General of Foreign Trade (DGFT) has set the import policy for platinum jewellery from 'Free' to 'Restricted', necessitating import licences. According to officials, the move seeks to address duty differentials and prevent tariff circumvention by ensuring that the rules of origin are properly enforced.

(With inputs from agencies.)