The government has issued a clarification to calm trade concerns over the recent silver jewellery import restrictions. It confirmed that these restrictions will not apply to export-linked units such as Special Economic Zones (SEZs), 100% Export-Oriented Units (EOUs), and those operating under specific authorisation schemes.

This clarification came after multiple representations from the jewellery trade and export community, which had raised concerns about the impact of the new policy.

According to the Directorate General of Foreign Trade (DGFT), imports made under the Advance Authorisation and Duty-Free Import Authorisation (DFIA) schemes will remain exempt. The directive has been issued to all customs authorities and DGFT regional offices to ensure strict implementation in line with the Foreign Trade Policy (FTP). Any deviation from the prescribed norms will attract penal action under existing laws.

DGFT Clarifies Scope of Exemptions

In its official statement, the DGFT confirmed that units operating within SEZs and EOUs are allowed to import silver jewellery, both plain and studded, as allowed under the existing provisions of the FTP and the SEZ Act.

This clarification resolves confusion that arose following DGFT Notification No. 34/2025-26, which had placed restrictions on the import of silver jewellery. The DGFT has now reaffirmed that these limits do not apply to SEZ and EOU units, since Rule 27 of the SEZ Rules, 2006, and Para 6.01(d) of the FTP already allow such imports by these export-focused entities.

The clarification was issued through Policy Circular No. 06/2025-26 dated October 27, 2025, to facilitate export-linked manufacturing operations within SEZs and EOUs.

Relief for the Export Sector

This move brings major relief to the export community, particularly after continuous engagement by the Gem and Jewellery Export Promotion Council (GJEPC) with the government. Industry leaders had expressed concern that the earlier restrictions might disrupt export-linked manufacturing operations.

By exempting SEZs, EOUs, and authorised schemes, the government has confirmed its support for India’s export ecosystem and maintained consistency with its trade facilitation goals.

The DGFT’s clarification ensures the uninterrupted import of silver jewellery for export-linked entities. This step safeguards the interests of India’s jewellery exporters and reinforces the government’s commitment to supporting the country’s growing export sector.