INDIA: Gold Jewellery Imports Restricted

India’s Ministry of Commerce and Industry has restricted gold jewellery and jewellery parts import, according to an 11 June 2024 notification, which took effect immediately and aims to contain the surge in gold imports. Goods affected are gold jewellery studded with pearls, diamonds, and precious and semi‑precious stones, which now require an import authorisation or government permit. The new rule exempts imports from the United Arab Emirates (UAE) under the India-UAE Comprehensive Economic Partnership Agreement.

The notification follows concerns over the rise in gold imports, driven by importers taking advantage of the lower tariffs afforded by trade agreements. India’s total gold imports jumped by 209% to US$3.11 billion in April 2024, up from US$1 billion in April of last year, bringing the goods trade deficit to a five‑month high of US$19.1 billion in April 2024.

To counter the surge, the Finance Ministry had already increased the import duties on the jewellery category of gold and silver findings, including clasps, hooks, pins, clamps and screws. Such findings now attract an import duty of 15%, up from the previous 11%.