Government Clarifies Applicability of Import Restrictions to SEZs, EOUs, and Export Authorisations.
The Directorate General of Foreign Trade (DGFT) has issued a clarification regarding the applicability of import restrictions imposed under Notification No. 34/2025-26 dated 24th September 2025, which restricts the import of Silver Jewellery under ITC (HS) Codes 71131141 and 71131149.
The clarification follows multiple representations from trade and industry seeking guidance on whether the said restrictions extend to imports made by Special Economic Zone (SEZ) and Export Oriented Unit (EOU) establishments.
Key Clarifications Issued:
- Imports by SEZ and EOU Units
- Imports of Silver Jewellery by 100% Export Oriented Units (EOUs) and units located in Special Economic Zones (SEZs) are not subject to the import restrictions notified under Notification No. 34/2025-26.
- This exemption is granted in accordance with:
- Para 6.01(d) of the Foreign Trade Policy (FTP) 2023, and
- Rule 27 of the SEZ Rules, 2006.
- However, such imported goods cannot be sold in the Domestic Tariff Area (DTA).
- Imports under Advance Authorisation / DFIA
- Imports made under the Advance Authorisation or Duty-Free Import Authorisation (DFIA) schemes are also exempt from these restrictions, in accordance with Para 4.18(iv) of the FTP 2023.
Compliance and Enforcement:
The clarification directs all Customs field formations and trade stakeholders to take note of the above policy provisions and ensure strict compliance.
Any deviation or misuse of the exemptions will attract penal action under the relevant laws and regulations.
Implications for Trade:
This clarification ensures that export-linked units such as SEZs, EOUs, and Advance Authorisation holders can continue their import operations uninterrupted, supporting India’s export competitiveness in the silver jewellery sector.
At the same time, it reinforces compliance boundaries by preventing diversion of such goods into the Domestic Tariff Area (DTA).
Notification Reference: DGFT
Policy Circular No. 06 /2025-26
27 /10 /2025