Govt restricts imports of certain silver jewellery to curb 'misuse' of FTAs, Pg 21.

Key Highlights:

• DGFT imposed restrictions on imports of plain silver jewellery to prevent FTA misuse.
• The restrictions follow a surge in silver jewellery imports with preferential duty exemptions between April-June 2024-25 and April-June 2025-26.
• Imports under Customs Tariff Heading (CTH) 7113 now require import authorization from DGFT.
• GJEPC requested relief measures from the Finance Minister due to the US tariff impact.

Detailed Insights:

• The import restrictions aim to protect domestic manufacturers and employment in the jewellery sector.
• The government intends to balance trade facilitation with preventing unfair practices exploiting FTA provisions.
• The Gem & Jewellery Export Promotion Council (GJEPC) is seeking measures to mitigate the impact of the 50% tariff imposed by the US.
• Rising global uncertainty has recently caused gold and silver prices to reach record highs.

Key Concepts Involved:

• FTA (Free Trade Agreement): An agreement between two or more countries to reduce trade barriers.
• DGFT (Directorate General of Foreign Trade): A government agency responsible for implementing import and export policies.
• Customs Tariff Heading (CTH): A standardized system for classifying traded products.