Gold jewellery import limitations no applicable to SEZ units

The government has stated that units within special economic zones (SEZs) are not subject to import restrictions on specific gold jewellery and items. These limitations on specific gold jewellery and other items were enforced by the government on July 12 through a notification.

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The Directorate General of Foreign Trade (DGFT) stated in a policy circular that it has received submissions from SEZs units outlining problems they are having as a result of these limitations. The Directorate General of Foreign Trade (DGFT) stated that as a result, it is “clarified” that imports of certain items by Special Economic Zone (SEZ) units “are outside the purview” of the July 12 announcement.

When it comes to provisions relating to customs, these zones are considered foreign organizations. The DGFT announced the free permit to import gold cover under the effective India-UAE Comprehensive Economic Partnership Agreement (CEPA) Tariff Rate Quota (TRQ) via notification no. 19/2023 issued on July 12, 2023. Otherwise, though, imports are limited. Previously, imports were free.

There is no clear exception for SEZ units in the announcement itself. However, the directorate was able to clarify that the import of gold covers by SEZ units falls outside the scope of the notification and is therefore not prohibited in response to complaints from SEZ units about the difficulties they faced using this notification.