India Tightens Silver Import Regulations: DGFT Introduces Mandatory Import Authorisation for Specific Silver Categories

 India Tightens Silver Import Regulations: DGFT Introduces Mandatory Import Authorisation for Specific Silver Categories

The Government of India has introduced a significant amendment to the import policy governing silver and silver-related products. Through Notification No. 19/2026-27 dated June 2, 2026, issued by the Directorate General of Foreign Trade (DGFT), the government has revised the import conditions for specific silver products covered under Chapter 71 of ITC (HS) 2022.

The move aims to strengthen regulatory oversight, improve transparency in bullion imports, and ensure tighter monitoring of precious metal inflows into the country.

What Has Changed?

Prior to this amendment, imports of certain silver products were permitted through nominated agencies notified by the Reserve Bank of India (RBI), DGFT, and qualified jewellers authorized by the International Financial Services Centres Authority (IFSCA) for transactions through the India International Bullion Exchange (IIBX).

Under the revised policy, these imports will now require a valid Import Authorisation issued by the DGFT, in addition to routing through the designated agencies.

The amendment has come into effect immediately.

Silver Products Covered Under the Amendment

The revised import conditions apply to the following ITC HS Codes:

1. ITC HS Code 71061000 – Silver Powder

Silver powder imports remain classified as "Restricted." However, importers must now obtain a valid DGFT Import Authorisation before imports can be processed through nominated agencies.

2. ITC HS Code 71069110 – Silver Grains

Imports of silver grains will require DGFT-issued Import Authorisation, irrespective of whether they are imported through banks, DGFT-notified agencies, or qualified jewellers using the IIBX platform.

3. ITC HS Code 71069120 – Silver Containing 99.9% or More Purity

High-purity silver imports, often used by bullion dealers, jewellers, and industrial users, are now subject to the same authorization requirement.

4. ITC HS Code 71069190 – Other Unwrought Silver

All other forms of unwrought silver covered under this code will also require prior DGFT authorization.

Impact on Importers

The amendment introduces an additional compliance layer for importers dealing in silver products. Businesses that previously relied solely on nominated agencies must now secure approval from DGFT before import transactions can be completed.

Key implications include:

• Increased regulatory scrutiny of silver imports.

• Better monitoring of precious metal inflows.

• Additional documentation and compliance requirements.

• Potential increase in processing time for import approvals.

• Greater transparency in bullion trading and import activities.

Impact on the Jewellery Industry

India is one of the world's largest consumers of silver, with demand driven by jewellery manufacturing, investment products, industrial applications, and religious use.

The new authorization requirement may affect:

• Bullion dealers

• Jewellery manufacturers

• Precious metal refiners

• Export-oriented jewellers

• Commodity traders

Industry participants may need to plan inventory and procurement cycles more carefully to accommodate authorization timelines.

Silver Dore Imports Remain Unchanged

The notification clarifies that silver dore imports by refineries can continue under existing licensing provisions and AU (Actual User) conditions. Therefore, refiners importing silver dore are not expected to face major procedural changes under this amendment.

Government's Objective

The amendment appears to be part of the government's broader strategy to strengthen oversight of precious metal imports. By requiring a DGFT-issued Import Authorisation, authorities can better track import volumes, improve compliance, and ensure imports align with national trade and economic objectives.

The measure may also help in curbing unauthorized trade activities and improving the traceability of imported silver entering the domestic market.

Conclusion

The DGFT's latest amendment marks an important regulatory development for India's silver trade ecosystem. While the change does not prohibit silver imports, it introduces a mandatory authorization mechanism that importers must comply with before bringing specified silver products into the country.

Businesses involved in silver trading, bullion dealing, refining, and jewellery manufacturing should review their import procedures immediately and ensure compliance with the revised DGFT requirements to avoid disruptions in their supply chains.

As India's precious metals market continues to evolve, regulatory compliance will remain a critical factor for maintaining smooth and uninterrupted import operations.