Government Clarifies, Providing Relief to Businesses

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Government Clarifies, Providing Relief to Businesses

Government Clarifies Import Curbs on Studded Gold Jewellery Do Not Apply to SEZs

The Indian government has clarified that its recent decision to impose import restrictions on certain types of studded gold jewellery does not apply to units operating within Special Economic Zones (SEZs). This clarification comes after concerns were raised by SEZ units regarding the impact of the notification on their operations.

The import restrictions, announced by the Directorate General of Foreign Trade (DGFT) on June 11th, were aimed at discouraging inbound shipments of studded gold jewellery from countries like Indonesia and Tanzania. However, the DGFT has now clarified that these restrictions do not apply to imports made by SEZ units, excluding Free Trade Warehousing Zones.

SEZs are designated areas treated as foreign territories for trade and customs purposes. They play a crucial role in India's export landscape, contributing over one-third of the country's total outbound shipments in the last fiscal year. These zones offer various benefits to businesses, including duty-free imports and exemptions from certain domestic taxes.

The government has approved 423 SEZs, of which 280 are currently operational. As of December 31st, 2023, a total of 5,711 units have been approved within these zones. The clarification regarding import restrictions on studded gold jewellery is expected to provide relief to SEZ units involved in the import and processing of such items.