What are the restrictions of Gold Import and Silver Import as of Sep 2025 in India ?
Detailed Version – Gold & Silver Import Restrictions in India (as of Sep 2025)
India’s policy on importing precious metals such as gold and silver has undergone significant tightening in recent years, especially to curb misuse of trade agreements, disguised imports, and smuggling. Below is a breakdown of the restrictions, their rationale, and their current status.
A. Gold Import Restrictions
1. Change in import categorisation & licensing
-
Unwrought or semi-manufactured gold (with purity ≥ 99.5 %) has been moved from a “Free” import status to “Restricted.” Only certain nominated or authorized entities may import.
-
The relevant HS (Harmonized System) codes for non‑monetary gold (e.g. 71081210, 71081310) have been revised or reclassified to allow control.
-
The government allows only certain parties — such as RBI‑nominated banks, DGFT‑nominated agencies, or qualified jewellers (particularly those recognized by the IFSCA) — to import this gold. These must typically bring it via the India International Bullion Exchange (IIBX).
Under India‑UAE CEPA (Comprehensive Economic Partnership Agreement), importers availing Tariff Rate Quotas (TRQs) must also use IIBX and deliver to IFSCA‑approved vaults.
2. Gold “dore” & industrial / user‑based import
-
Gold dore (a semi‑pure form, often produced in mines or refining) may still be imported, but under licence and subject to an “actual user” condition. That is, the importer must certify actual usage, and cannot simply re-export or stock it arbitrarily.
-
Some lower‑purity or intermediary forms may have different treatment, either under “free” import or subject to RBI regulation, depending on the HS code.
3. Restrictions on gold‑containing alloys and disguised imports
-
In June 2025, the government issued Notification No. 18/2025‑26 (DGFT) to restrict imports of alloys containing gold (e.g. Palladium, Rhodium, Iridium) if the gold content exceeds 1 % by weight. This rule aims to prevent importers from disguising gold imports under other metal categories.
Imports of colloidal precious metals (i.e. suspensions or chemical compounds of gold, silver nanoparticles) under CTH 2843 were also moved from “Free” to “Restricted” to curtail evasion via chemical/compound forms.
-
On the customs side, CBIC (Customs) has issued instructions to implement these restrictions.
4. Tariff values and valuation changes
-
As of April 24, 2025, customs has adopted revised tariff values (for valuation of imports) for gold and silver. Gold in any form (benefiting under certain notifications) is fixed at USD 1,106 per 10 grams.
-
The deletion of older HS codes (e.g. 71081200, 71081300) in favour of more specific ones enables finer monitoring and control over the kinds of gold imports.
B. Silver Import Restrictions
Silver import policy has also been tightened, particularly in mid to late 2025, with new curbs introduced to counter misuse of Free Trade Agreements (FTAs) and prevent circumvention via silver jewellery imports.
1. Movement from “Free” to “Restricted” for silver jewellery
-
On September 24, 2025, DGFT issued Notification No. 34/2025‑26, under which imports of certain silver jewellery (plain silver jewellery, under HS codes 71131141 and 71131149) were reclassified from “Free” to “Restricted” effective immediately until March 31, 2026.
-
Under this change, importers must obtain an import authorisation / licence from DGFT for such silver jewellery or parts thereof.
The rationale is to prevent misuse of FTAs, whereby silver jewellery was imported with preferential duty benefits, undermining domestic silver jewellery manufacturers.
2. Silver bullion, high‑purity silver, and authorised routes
-
Silver bars with purity 99.9 % or more (HS code 71069120) have been moved to the restricted category. They can now only be imported via nominated agencies or qualified jewellers via IIBX.
-
However, semi-manufactured silver (e.g. lower purity or semi-processed forms, under codes like 71069221, 71069229) remain free import, though still subject to RBI regulation.
-
In effect, the higher purity bullion / bars are controlled, while more downstream or processed forms still have some flexibility.
3. Time limitation & review
-
The restriction on silver jewellery imports is explicitly tied to a period: up to March 31, 2026. After that, the government may revisit whether to continue, relax, or rescind the restrictions.
C. Comparisons, Key Highlights & Effects
| Feature / Issue | Gold Imports | Silver Imports |
|---|---|---|
| Purity threshold under control | ≥ 99.5 % (unwrought / semi-manufactured) | ≥ 99.9 % (bars / bullion) |
| Licensing / authorised entities | RBI‑nominated, DGFT‑nominated, qualified jewellers via IIBX, TRQ holders | Nominated agencies, qualified jewellers via IIBX |
| Jewellery imports | Subject to restrictions for certain codes / disguised forms | Plain silver jewellery (unstudded) moved to “Restricted” till Mar 2026 |
| Alloys / disguised imports | Alloys with >1 % gold now restricted; colloidal gold compounds restricted | — (not similarly extended, except via chemical forms) |
| Import via trade agreements (FTA / CEPA) | Must follow IIBX / nominated route | Jewellery import curbs to block misuse of FTAs |
| Valuation / tariff values | Fixed USD 1,106 per 10 g (for qualifying forms) | Silver valuation aligned with revised tariff values effective April 2025 |
| Time horizon | Ongoing, until further policy changes | Jewellery curbs valid till 31 Mar 2026; other restrictions may persist |
Key observations / effects:
-
The government is clearly trying to plug loopholes by which gold/silver was being imported in disguised forms (as alloys, chemical compounds, jewellery) or via FTAs at preferential duties.
-
The use of IIBX (India International Bullion Exchange), nominated agencies, and actual user conditions increases traceability and accountability in imports.
-
Manufacturers (especially small and medium enterprises in jewellery) may benefit due to a more level playing field, as unlicensed or unfairly advantaged imports are curtailed.
-
Import volumes may reduce or get concentrated, possibly pushing up premiums or altering domestic supply chains.
-
The restrictions are dynamic — especially the silver jewellery restriction is explicitly time-bound (till Mar 2026) — so importers must closely monitor DGFT notifications and policy updates.
Brief Version (Summary)
As of September 2025, India has imposed tighter controls on the import of gold and silver to curb misuse, smuggling, and unfair competition. Key restrictions include:
-
Gold of purity ≥ 99.5 % in unwrought or semi‑manufactured form has been moved from free import to “Restricted.” Only RBI‑nominated banks, DGFT‑nominated agencies, or qualified jewellers may import via IIBX.
-
Gold “dore” (semi‑pure forms) may be imported under licence with “actual user” conditions.
-
Imports of alloys containing more than 1 % gold (e.g. palladium, rhodium, iridium alloys) are now restricted.
-
Colloidal gold compounds (liquid / nanoparticle forms) are also restricted.
-
On silver: plain silver jewellery (unstudded) under certain HS codes has been shifted from “Free” to “Restricted” (valid until March 31, 2026), requiring import authorisation.
-
Silver bars of 99.9 % purity are restricted, with imports allowed only via nominated agencies or qualified jewellers through IIBX.
-
Semi-manufactured silver forms remain free (subject to RBI oversight).
-
The overall aim is to prevent misuse of FTAs / CEPA, curb disguised imports, and protect domestic industry, especially in jewellery.
Comments
Post a Comment