Analysis of DGFT Notification No. 19/2026-27 dated 02 June 2026 Amendment in Import Policy Conditions for Specified Silver Products under Chapter 71 of ITC (HS), 2022.

Introduction

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, has issued Notification No. 19/2026-27 dated 02 June 2026, introducing significant changes in the import policy conditions applicable to certain silver products classified under Chapter 71 of ITC (HS), 2022 Schedule-I (Import Policy).

The notification has been issued under the powers conferred by Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992 read with Paragraphs 1.02 and 2.01 of the Foreign Trade Policy (FTP), 2023. The amendment comes into force with immediate effect.

The principal objective of the notification is to introduce an additional regulatory requirement whereby imports of specified silver products, even when undertaken through RBI-notified nominated agencies, DGFT-notified nominated agencies, or qualified jewellers importing through the India International Bullion Exchange (IIBX), shall be permissible only against a valid Import Authorisation issued by DGFT.

This marks a significant tightening of the import control mechanism for silver imports into India.

Background of Existing Import Framework

Silver imports in India have traditionally been regulated under the 'Restricted' category under the Foreign Trade Policy.

Prior to this amendment:

• Banks notified by the Reserve Bank of India (RBI) could import specified silver products.
• Nominated agencies notified by DGFT could undertake imports.
• Qualified Jewellers notified by the International Financial Services Centres Authority (IFSCA) could import silver through the India International Bullion Exchange (IIBX).
• Refineries were allowed to import Silver Dore under specified licensing conditions with Actual User (AU) requirements.

The earlier framework primarily relied upon institutional eligibility and nomination status of importers. Once an importer qualified as a nominated agency or approved jeweller, imports could generally be undertaken without obtaining a separate DGFT Import Authorisation for each import category covered under the notification.

The present notification fundamentally alters this position.

ITC (HS) Codes Covered Under the Amendment

The notification covers the following silver products:

These products fall under Heading 7106 covering:

'Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form.'

Key Change Introduced by the Notification

Earlier Position

Imports were permitted through:

• RBI-notified banks.
• DGFT-notified nominated agencies.
• Qualified jewellers notified by IFSCA through IIBX (where applicable).

No separate DGFT Import Authorisation requirement existed for such nominated entities.

Revised Position

The notification now mandates that:

Imports shall be permitted only against:

A valid Import Authorisation issued by DGFT.

This requirement applies to:

1. RBI-notified banks.
2. DGFT-notified nominated agencies.
3. Qualified jewellers notified by IFSCA importing through IIBX.

Therefore, nomination alone is no longer sufficient.

Both conditions must now be fulfilled:

Condition 1: Importer must be an eligible nominated entity.

Condition 2: Importer must obtain a valid DGFT Import Authorisation before undertaking imports.

Product-wise Analysis

ITC HS 71061000 - Silver Powder

Existing Condition

Import permitted only through:

• RBI-notified banks.
• DGFT-notified nominated agencies.

Revised Condition

Import permitted only if:

• Import is undertaken through the eligible nominated agency; and
• A valid DGFT Import Authorisation has been obtained.

Trade Impact

Silver powder is widely used in:

• Electronics manufacturing.
• Solar cell production.
• Conductive pastes.
• Industrial chemicals.
• Precision engineering sectors.

Industrial users sourcing through nominated agencies will now be subject to an additional authorization process.

ITC HS 71069110 - Silver Grains

Existing Condition

Import allowed through:

• RBI-notified banks.
• DGFT-notified agencies.
• Qualified jewellers through IIBX.

Silver Dore imports by refineries allowed against licence with Actual User condition.

Revised Condition

Imports through:

• Banks,
• Nominated agencies,
• Qualified jewellers through IIBX

shall require:

DGFT Import Authorisation

The provision relating to:

Silver Dore imports by refineries against licence with AU condition

remains unchanged.

Trade Impact

Silver grains are extensively used for:

• Jewellery manufacturing.
• Bullion trade.
• Precious metal refining.
• Investment-grade products.

The additional authorization layer may strengthen regulatory oversight over bullion inflows.

ITC HS 71069120 - Silver of Purity 99.9% or More

Existing Condition

Import permitted through:

• RBI-notified banks.
• DGFT-notified agencies.
• Qualified jewellers through IIBX.

Revised Condition

All imports by eligible entities now require:

DGFT Import Authorisation.

Trade Impact

This category largely represents:

• Investment-grade bullion.
• High-purity silver bars.
• Institutional precious metal imports.

The Government will now have greater control over import volumes and end-use monitoring.

ITC HS 71069190 - Other Unwrought Silver

Existing Condition

Import permitted through:

• RBI-notified banks.
• DGFT-notified nominated agencies.

Silver Dore imports by refineries permitted under licence with Actual User condition.

Revised Condition

Imports now require:

DGFT Import Authorisation.

The Silver Dore provision remains unchanged.

Trade Impact

The amendment increases compliance requirements for bullion market participants dealing in unwrought silver products.

Impact on India International Bullion Exchange (IIBX)

The notification specifically covers imports undertaken through:

India International Bullion Exchange

Qualified jewellers notified by:

International Financial Services Centres Authority

were earlier eligible to import specified silver products through IIBX under the prescribed framework.

After the amendment:

• Eligibility as a qualified jeweller remains intact.
• However, imports through IIBX will require prior DGFT Import Authorisation.

This introduces an additional compliance checkpoint before import transactions can be completed.

Regulatory Intent Behind the Amendment

The amendment appears to be driven by several policy objectives.

1. Enhanced Monitoring of Precious Metal Imports

Silver imports have witnessed substantial growth in recent years.

By introducing an Import Authorisation mechanism, DGFT can:

• Track import volumes more effectively.
• Monitor import trends.
• Ensure compliance with foreign trade regulations.

2. Better Control Over Bullion Flows

Silver is a strategic precious metal used for:

• Investment.
• Jewellery manufacturing.
• Industrial applications.

The Government may seek to regulate inflows to maintain oversight over foreign exchange outflows and bullion market dynamics.

3. Strengthening End-Use Verification

Import Authorisation provides authorities with:

• Importer-level data.
• Product-level data.
• Quantity controls.
• End-use declarations.

This improves traceability across the supply chain.

4. Prevention of Misuse

The revised framework minimizes the risk of:

• Unauthorized imports.
• Diversion of imported silver.
• Misdeclaration of end-use.
• Regulatory arbitrage through intermediary entities.

Compliance Requirements for Importers

Affected importers must now ensure:

Eligibility

Importer must continue to qualify as:

• RBI-notified bank;
• DGFT-notified nominated agency; or
• IFSCA-notified qualified jeweller.

Import Authorisation

A valid DGFT Import Authorisation must be obtained prior to import.

Documentation

Importers may be required to maintain:

• Authorisation copies.
• Import contracts.
• Supplier documents.
• Bill of Entry records.
• End-use records.

Customs Clearance

Customs authorities may verify:

• Validity of Import Authorisation.
• Import quantities.
• Product classification.
• Compliance with licence conditions.

Implications for Bullion Market Participants

The amendment will affect:

Banks: Banks importing silver bullion will need prior DGFT authorization.

Nominated Agencies: Government-authorized importing agencies must obtain approvals before imports.

Qualified Jewellers: Jewellers using IIBX for procurement will face additional regulatory procedures.

Refineries: Refineries importing Silver Dore under existing licence conditions remain largely unaffected, as the notification specifically retains the AU licence framework.

Foreign Trade Perspective: From a foreign trade policy standpoint, the amendment represents a transition from:

Eligibility-Based Import Control

to

Authorization-Based Import Control

This signifies a higher degree of regulatory supervision over precious metal imports while retaining the existing nominated importer framework. The Government has not altered the 'Restricted' status of the products. Rather, it has strengthened the operational conditions governing imports.

Therefore, the amendment should be viewed as a compliance enhancement measure rather than a complete restriction on trade.

Conclusion

DGFT Notification No. 19/2026-27 dated 02 June 2026 introduces a significant procedural change in the import regime for specified silver products under ITC (HS) Codes 71061000, 71069110, 71069120, and 71069190. While imports continue to remain under the Restricted category and may still be undertaken by RBI-notified banks, DGFT-notified nominated agencies, and IFSCA-notified qualified jewellers through IIBX, such imports will henceforth be permissible only against a valid Import Authorisation issued by DGFT.

The amendment strengthens governmental oversight of silver imports, improves monitoring of bullion inflows, enhances end-use verification mechanisms, and promotes greater transparency in the precious metals trade. Importers operating in the bullion, jewellery, refining, banking, and precious metals sectors must immediately review their compliance procedures and ensure that appropriate DGFT authorizations are secured before undertaking future imports of the affected silver products.

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