Trade watch: Govt tightens curbs on platinum jewellery; move targets FTA misuse

The government on Monday tightened import controls on select categories of platinum jewellery, imposing licensing requirements until April 30, 2026, in an effort to check misuse of free trade agreements (FTAs), particularly with ASEAN nations, PTI reported.The Directorate General of Foreign Trade (DGFT), in a fresh notification, revised the import policy for these platinum jewellery items from ‘Free’ to ‘Restricted’ with immediate effect. Importers will now require a DGFT licence to bring in these goods.Officials said the move follows instances of traders exploiting duty differentials under the India-ASEAN FTA to channel precious metals into the country in the guise of unstudded jewellery. Thailand – a key ASEAN member – has been flagged as one of the sources where such practices were observed.Some traders were “trying to use the FTA to make a quick buck by exploiting duty differentials and circumventing tariffs,” an official said, adding that the restrictions are aimed at curbing these attempts.“We are learning from all these rules used by the trade and trying to see that the rules of origin provide mechanisms that can address it without getting into these kinds of notifications in future,” the official noted.The curbs mirror a similar step taken in September, when the government imposed restrictions on select silver jewellery imports until March 31, 2026, to deter misuse of trade agreements.India signed the ASEAN FTA in goods in 2009 and has since been monitoring gaps that allow tariff circumvention, particularly in the precious metals segment.