Notification No. 57/2023 - Dated: 15-1-2024 - Amendment in policy condition of silver covered under Chapter 71 of Schedule –I (Import Policy) of ITC (HS) 2022

The Directorate General of Foreign Trade (DGFT) under India's Ministry of Commerce and Industry recently issued Notification No. 57/2023, dated January 15, 2024, which introduces significant amendments to the import policy of silver under Chapter 71 of Schedule –I (Import Policy) of ITC (HS) 2022. This notification holds considerable implications for various sectors of the Indian economy, particularly for industries involved in the manufacturing of electrical, electronics, glass, and solar products.

Key Amendments and Their Implications:

1. Policy Condition No. 05 for Chapter 71:

   • For Electrical, Electronics, Engineering, Glass, and Solar Industries: The import of semi-manufactured silver in various forms (including paste, sheets, plates, strips, tubes, electrodes, wires, and brazing alloys) for use as input in the manufacturing process is now categorized as 'Free' under the 'Actual User' basis. This change is expected to boost these industries by reducing the cost and increasing the availability of essential raw materials.
   • For Research and Development: Import of the items mentioned above for R&D purposes by government or government-recognized research institutions is also classified as 'Free'. This amendment is likely to foster innovation and development in silver-based technologies and products.

2. Amended Import Policy for ITC(HS) Codes 71069210 and 71069290:

   • The policy for importing semi-manufactured silver under these HS codes has been revised. Previously, the import of these items was restricted and allowed only through nominated agencies as notified by the RBI and DGFT. Now, the policy includes provisions for qualified jewellers, as notified by the IFSCA, to import through the India International Bullion Exchange (IIBX). This modification could potentially streamline the import process and make it more accessible to a wider range of businesses.

Economic and Industry Impact:

The liberalization of the import policy for semi-manufactured silver is expected to have a positive impact on various sectors. The 'Actual User' basis provision ensures that the industries which directly utilize these materials for manufacturing will benefit from easier access and potentially lower costs. Additionally, the inclusion of qualified jewellers and the allowance for import through IIBX under the revised policy for specific HS codes could enhance the competitiveness and efficiency of the Indian jewellery sector, which is a significant contributor to the economy.

Furthermore, this notification could also have a ripple effect on related industries and markets. For instance, the solar industry, which uses silver in solar panels, may experience a boost in production capabilities, potentially contributing to India's renewable energy goals. Similarly, the electronics and engineering sectors might see increased innovation and growth due to easier access to essential raw materials.

Conclusion:

DGFT's Notification No. 57/2023 represents a strategic move towards liberalizing trade policies concerning critical raw materials like silver. This change is expected to enhance the operational efficiencies of various industrial sectors and contribute positively to India's broader economic growth. However, it will be crucial to monitor the implementation of these policies and their actual impact on the industries and the overall economy in the coming years​​.

Full Text:

Notification No. 57/2023 - Dated: 15-1-2024 - Amendment in policy condition of silver covered under Chapter 71 of Schedule –I (Import Policy) of ITC (HS) 2022