The government has imposed import restrictions on certain platinum jewellery, to be in force till April next year, to check “bad actors” misusing free trade agreements (FTAs).
The DGFT, in a notification on Monday, stated that the import policy of platinum jewellery had been revised from `free’ to `restricted’, with immediate effect. This means that a government licence would now be required for imports.
Crackdown on circumvention
“These curbs have been introduced to check bad actors who are flouting import rules and misusing FTAs to circumvent and import without paying full import duties. Such orders would be passed for even more items if required,” an official said.
Earlier curbs echoed
Earlier this year, import restrictions were imposed on certain silver jewellery, applicable till March 31 next year. This was done to check the surge in imports from countries like Thailand, under the ASEAN FTA.
“India had signed the FTA with ASEAN in 2009. It is not possible to see so much into the future to analyse how circumstances would change that would lead to unscrupulous elements misusing the pact,” the official said.
In reviews of trade pacts and the new FTAs being signed, care is being taken to ensure that the rules of origin, which determine a product’s origin, are strict enough to make circumvention difficult, the official added.