DGFT Clarifies Import Rules for Silver Under ITC(HS) Code
DGFT Clarifies Import Rules for Silver Under ITC(HS) Code 71069221
The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued Policy Circular No. 02/2026-27 dated 9 October 2026, clarifying the requirements for importing silver classified under ITC(HS) code 71069221 against an Import Authorisation issued by DGFT.
The clarification addresses concerns raised by importers regarding the eligibility requirements for importers, the applicability of Nominated Agency or Qualified Jeweller status, and the mandatory use of the India International Bullion Exchange (IIBX).
1. Import Policy for Silver Under ITC(HS) 71069221
DGFT Notification No. 17/2026-27 dated 16 May 2026 changed the import policy for silver covered under ITC(HS) code 71069221 from “Free, subject to RBI regulation” to “Restricted, subject to Policy Condition No. 7 of Chapter 71.”
Under Paragraph 2.08 of the Foreign Trade Policy (FTP), 2023, goods classified as restricted can generally be imported only against a valid authorisation or in accordance with a specific exemption or procedure notified by the government.
Accordingly, silver falling under ITC(HS) 71069221 requires a valid DGFT Import Authorisation, except where an applicable exemption under Policy Condition No. 7 is available.
2. Impact of DGFT Notification No. 19/2026-27
DGFT Notification No. 19/2026-27 dated 2 June 2026 amended the import policy conditions for the following ITC(HS) codes:
- 71061000
- 71069110
- 71069120
- 71069190
Under the amended conditions, imports by RBI/DGFT-notified Nominated Agencies and IFSCA-notified Qualified Jewellers through IIBX are also subject to the prescribed Import Authorisation requirement.
However, ITC(HS) code 71069221 is not covered by Notification No. 19/2026-27. Consequently, the additional conditions introduced through that notification do not apply to silver classified under this code.
3. Key Clarifications Issued by DGFT
A. Is a DGFT Import Authorisation sufficient for import?
Yes. A valid Import Authorisation issued by DGFT is the principal requirement for importing restricted silver under ITC(HS) 71069221, subject to the terms and conditions specified in the authorisation and other applicable requirements.
The authorisation covers the specified goods, quantity and value, along with any conditions expressly endorsed on it.
B. Is Nominated Agency, Qualified Jeweller or EOU status compulsory?
No. DGFT has clarified that an importer does not need to separately qualify as a Nominated Agency, an IFSCA-notified Qualified Jeweller or an Export Oriented Unit (EOU) merely to import silver under ITC(HS) 71069221 against a valid Import Authorisation.
This position is subject to any specific eligibility condition imposed in the authorisation itself.
Therefore, an eligible authorisation holder may import the goods directly in its own name, provided all applicable authorisation conditions are met.
C. Is import through IIBX mandatory?
No. The requirement to route imports through the India International Bullion Exchange (IIBX), as introduced under Notification No. 19/2026-27, applies to the specific ITC(HS) codes covered by that notification.
Since ITC(HS) 71069221 is outside its scope, import through IIBX is not mandatory for this classification unless the relevant Import Authorisation specifically requires it.
4. Instructions to Customs Authorities
DGFT has requested Customs Authorities to process clearance of silver consignments classified under ITC(HS) 71069221 in accordance with this clarification, the conditions of the respective Import Authorisations and the applicable procedures.
The circular has been issued with the approval of the Director General of Foreign Trade.
Conclusion
The latest clarification provides greater certainty for importers of silver under ITC(HS) 71069221. A valid DGFT Import Authorisation is generally sufficient for import in the holder’s own name, without an additional requirement to possess Nominated Agency, Qualified Jeweller or EOU status. Routing through IIBX is also not compulsory under the conditions of Notification No. 19/2026-27 for this classification.
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