(Nov 17): India imposed curbs on some platinum jewellery imports, another step to tighten control over the precious metals trade and plug revenue leakages.
Unstudded platinum jewellery has been placed under the “restricted” import category until April next year, according to a notification from the Directorate General of Foreign Trade. Importers will now need government authorisation to bring in such items, which were previously freely allowed. Earlier, the government curbed imports of plain silver jewellery until March next year.
India’s broader gems and jewellery sector is being hurt by subdued global demand and rising precious metals prices. Gross exports in October fell more than 30% from a year earlier to US$2.17 billion, data from the Gems and Jewelery Export Promotion Council show.
The restriction follows complaints from industry groups about traders exploiting some loopholes in the import mechanism. It will allow the government to close any trade irregularities that can result in lower import bills. India is a net importer of gold and changes in flows of the yellow metal can significantly impact the country’s trade balance.
The new import policy targets recent trends in which traders imported platinum jewellery containing about 90% gold through Free Trade Agreement routes at zero duty, hurting genuine domestic jewellers, Surendra Mehta, national secretary of the India Bullion and Jewellers Association, said via text messages.
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