SEZs excluded from new gold import restrictions

The government has clarified that new import restrictions on studded gold jewelry do not apply to special economic zones (SEZs). This exemption aims to address concerns raised by SEZ units. SEZs, which contributed over one-third of India’s exports last fiscal year, will continue operating under their current regulations. 

The government has clarified that its decision to impose import restrictions on certain types of studded gold jewelry does not apply to units in special economic zones (SEZs). On June 11, the Directorate General of Foreign Trade (DGFT) issued a notification imposing these curbs to discourage imports of these items from countries such as Indonesia and Tanzania.

“It is clarified that imports made by SEZ units (other than free trade warehousing zones)…are outside the purview of this notification,” the DGFT stated in a policy circular. The DGFT acknowledged that it had received representations from SEZ units regarding the challenges posed by this notification.

Goods falling under the restricted category require a government-issued license or permission.

SEZs are significant export hubs, contributing over one-third of the country’s total exports in the last fiscal year. These zones are treated as foreign territories for trade and customs purposes, with limitations on duty-free sales in the domestic market.

Exports from SEZs increased by over 4% to USD 163.69 billion in 2023-24.

The government has approved 423 SEZs, with 280 operational as of March 31 this year. As of December 31, 2023, 5,711 units have been approved in these zones.