India Restricts Jewellery Imports Under CTH 7113: What Businesses Need to Know Right Now
DGFT's Notification No. 02/2026-27 changes the import landscape for precious metal jewellery with immediate and sweeping effect — no transitional grace period applies.
In a significant move that will reshape India's gems and jewellery trade, the Directorate General of Foreign Trade (DGFT) issued Notification No. 02/2026-27 on 1 April 2026, amending the import policy for articles of jewellery and parts thereof falling under Customs Tariff Heading (CTH) 7113 of ITC (HS) 2022, Schedule-I. The change is stark and immediate: several categories that were previously freely importable are now classified as "Restricted" — meaning an import licence is required before goods can enter India.
Background: What Is CTH 7113?
CTH 7113 covers articles of jewellery and parts thereof made of precious metals (gold, silver, platinum) or metal clad with precious metal. This is one of the most commercially significant product categories in India's trade, given that the country is among the world's largest consumers of gold jewellery and a major hub for gems and jewellery manufacturing and exports.
The notification is issued under powers conferred by Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP) 2023.
The Key Policy Changes
The notification amends multiple ITC (HS) codes under heading 7113. The table below captures the most critical changes, distinguishing between codes that have moved from "Free" to "Restricted" and those that remain "Restricted" with unchanged or clarified conditions.
| ITC (HS) Code | Description | Earlier | Now | Note |
|---|---|---|---|---|
| 71131110 | Jewellery with filigree work (Silver) | Free | Restricted | — |
| 71131142 | Other Jewellery — studded with pearls (Silver) | Free | Restricted | — |
| 71131143 | Studded with diamonds (Heading 7102, Silver) | Free | Restricted | — |
| 71131190 | Parts (Silver jewellery) | Free | Restricted | — |
| 71131922 | Of platinum — studded with pearls | Free | Restricted | — |
| 71131923 | Of platinum — studded with diamonds (7102) | Free | Restricted | — |
| 71131924 | Of platinum — studded with diamonds (7104) | Free | Restricted | — |
| 71131990 | Other (non-gold, non-platinum precious metal) | Free | Restricted | — |
| 71132000 | Of base metal clad with precious metal | Free | Restricted | — |
| 71131911–71131915 | Gold jewellery (unstudded, pearls, diamonds) | Restricted | Restricted | CEPA TRQ exemption |
In summary, items that carried a "Free" import status — meaning they could be imported without a licence — have now been brought under the "Restricted" category. Gold jewellery codes (71131911 to 71131915) were already restricted and remain so, but the notification specifically clarifies that imports under a valid India-UAE CEPA Tariff Rate Quota (TRQ) shall be permitted without an import licence.
The No-Transition Rule: A Critical Clause
One of the most consequential aspects of this notification is the explicit denial of transitional relief. Ordinarily, Para 1.05(b) of the FTP 2023 provides some breathing room for traders with prior commitments when import policies change. This notification categorically overrides that provision.
This makes the notification unusually strict. Importers who had entered into contracts assuming "Free" import status may find themselves unable to clear goods without a licence — which may take time to obtain. Legal counsel should be consulted immediately for any pending shipments.
Who Is Exempt?
The notification carves out specific categories from the restriction. The following importers are not subject to the new licensing requirement:
- 100% Export Oriented Units (EOUs) — as per Para 6.01(d) of FTP 2023 — provided goods are not sold into the Domestic Tariff Area (DTA).
- Units located in Special Economic Zones (SEZs) — under Rule 27 of the SEZ Rules, 2006 — subject to the same DTA restriction.
- Importers operating under schemes for export of Gems and Jewellery under Chapter 4 of FTP 2023 (e.g., Advance Authorisation, DFIA, etc.).
- Gold jewellery importers holding a valid India-UAE CEPA Tariff Rate Quota (TRQ) allocation — for applicable codes under 71131911 to 71131915.
Why This Change? Reading Between the Lines
The government has not explicitly stated its policy rationale in the notification, which is standard for such amendments. However, the move is consistent with broader policy themes: protecting domestic manufacturing, managing the current account deficit, and possibly addressing concerns about the misuse of the India-UAE CEPA route for routing foreign jewellery into India at preferential tariff rates.
India's gems and jewellery sector — which accounts for roughly 10–12% of the country's merchandise exports — has seen pressure from cheaper imports, particularly finished jewellery. Restricting imports of finished pieces while preserving exemptions for export-linked imports (EOUs, SEZs, Advance Authorisations) signals a clear intent to support value addition within India rather than re-export of imported finished goods.
What Should Businesses Do Now?
The immediate and retroactive nature of this policy change demands urgent action from jewellery importers, trading houses, and customs brokers. Here is a practical checklist:
- Audit all open purchase orders and shipments in transit under the affected ITC (HS) codes. Determine if goods are already on the water or awaiting customs clearance.
- Check whether your business qualifies under one of the four exemption categories. If you operate as an EOU or SEZ unit, verify your status is current and documented.
- If you hold a valid India-UAE CEPA TRQ certificate for gold jewellery, confirm its validity and apply it appropriately at the time of import.
- If no exemption applies, initiate the process of obtaining an import licence from DGFT before clearing goods through customs. Operating without one could result in confiscation and penalties.
- Engage a trade lawyer or licensed customs broker familiar with DGFT licensing to navigate the Import Licensing application process swiftly.
The Bigger Picture
This notification is a reminder of how quickly India's import landscape can shift — and how critical it is for businesses to track DGFT notifications in near real-time. The explicit denial of transitional protection is a sharp departure from softer policy adjustments of the past and signals that the government means to enforce these restrictions firmly from day one.
For exporters, particularly those in the UAE using CEPA benefits to supply finished jewellery to India, this development warrants careful review of commercial strategies. The TRQ mechanism offers a pathway, but it comes with limits on volume and requires valid paperwork.
This article is based on DGFT Notification No. 02/2026-27 dated 1 April 2026. It is intended for informational purposes only and does not constitute legal advice. Businesses should consult a qualified trade law practitioner for guidance specific to their situation.
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