The government has clarified that the recent import restrictions on certain types of studded gold jewellery do 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 reduce imports from countries like Indonesia and Tanzania.
The DGFT stated in a policy circular, “It is clarified that imports made by SEZ units (other than free trade warehousing zones)…are outside the purview of this notification.”
The clarification came after SEZ units reported issues caused by the new import restrictions. Under the restricted category, goods require a licence or permission from the government.
SEZs are crucial export hubs, contributing over one-third of India’s total exports in the last fiscal year. These zones are treated as foreign territories for trade and customs purposes, with restrictions on duty-free sales in the domestic market.
In 2023-24, exports from SEZs increased by over 4% to USD 163.69 billion. As of March 31, 423 SEZs have been approved, with 280 operational. By December 31, 2023, 5,711 units had been approved in these zones.