On June 11th, 2024, the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, Government of India, issued Notification No. 17/2024-25. This notification introduces significant changes to the import policy of specific ITC (HS) codes under Chapter 71 of Schedule-I (Import Policy) of ITC (HS) 2022. The amendments, effective immediately, shift the import policy status of certain gold jewelry items from “Free” to “Restricted.”
Background
The Foreign Trade (Development & Regulation) Act, 1992, empowers the Central Government to regulate import and export policies. In accordance with Sections 3 and 5 of this Act, and the provisions of the Foreign Trade Policy 2023, the government periodically revises import regulations to align with current economic and trade objectives.
Key Changes
The specific items affected by this amendment include gold jewelry studded with pearls, diamonds, and other precious stones, as well as parts thereof. The affected ITC (HS) codes are:
- 71131912: Gold jewelry studded with pearls.
- 71131913: Gold jewelry studded with diamonds of heading 7102.
- 71131914: Gold jewelry studded with diamonds of heading 7104.
- 71131915: Gold jewelry studded with other precious and semi-precious stones.
- 71131960: Parts of such jewelry.
Revised Import Policy
Previously, these items were classified under a “Free” import policy, allowing unrestricted importation. Under the new amendment, the policy changes to “Restricted,” meaning imports now require specific authorizations. However, there is an exception for imports conducted under a valid INDIA-UAE Comprehensive Economic Partnership Agreement (CEPA) Tariff Rate Quota (TRQ). Under this agreement, imports of the specified jewelry items can proceed without the need for restricted import authorization.
Implications for Importers
Importers of gold jewelry items under the specified ITC (HS) codes must now navigate the additional step of obtaining import authorizations unless they are operating under the INDIA-UAE CEPA TRQ framework. This change aims to regulate the inflow of these high-value items, likely to balance trade, ensure quality standards, and possibly curb unauthorized trade practices.
Conclusion
The DGFT’s amendment to the import policy of specific gold jewelry items marks a significant regulatory shift. By transitioning from a “Free” to “Restricted” import status, the government aims to exercise greater control over these imports, ensuring compliance with economic and trade policies. Importers need to adapt to these changes promptly to ensure smooth business operations. This amendment, while restrictive, provides a structured framework for legitimate trade under the INDIA-UAE CEPA TRQ, facilitating continued business with minimal disruption.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 17/2024-25-DGFT | Dated: 11th June, 2024
Subject: Amendment in import policy of specific ITC (HS) codes under Chapter 71 of Schedule — I(Import Policy) of ITC (HS) 2022.
S. O. 2232(E).— In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development &Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby amends the import policy and policy condition of specific ITC HS codes under Chapter 71 of ITC (HS), 2022, Schedule — I (Import Policy), with immediate effect, as under:
| ITC(HS) Code | Description Policy | Existing Import Policy | Revised Import Policy |
Policy Condition |
| 71131912 | — Of gold: —-Studded with pearls | Free | Restricted | However import under a valid INDIA-UAE CEPA TRQ shall be permitted without restricted import Authorisation. |
| 71131913 | — Of gold: —-Studded with diamonds of heading 7102 | Free | Restricted | However import under a valid INDIA-UAE CEPA TRQ shall be permitted without restricted import Authorisation. |
| 71131914 | — Of gold: —-Studded with diamonds of heading 7104 | Free | Restricted | However import under a valid INDIA-UAE CEPA TRQ shall be permitted without restricted import Authorisation. |
| 71131915 | — Of gold :—Studded with other precious and semi-precious stones | Free | Restricted | However import under a valid INDIA-UAE CEPA TRQ shall be permitted without restricted import Authorisation. |
| 71131960 | — Parts | Free | Restricted |
Effect of the Notification: The Import Policy of ITC (HS) code 71131912, 71131913, 71131914, 71131915, 71131960 has been amended from “Free” to “Restricted” with immediate effect. However import under ITC (HS) codes 71131912, 71131913, 71131914 and 71131915 shall be permitted without restricted import Authorisation under a valid INDIA-UAE CEPA TRQ.
This is issued with the approval of Minister of Commerce & Industry.
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to Govt. of India
Email: dgft@nic.in
(Issued from File No. 01/89/180/36/AM-11/PC-2[A]/E-1679)
