The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued an important clarification regarding the import of silver classified under ITC(HS) Code 71069221 against Import Authorisations issued by DGFT for restricted items.
Through Policy Circular No. 02/2026-27 dated October 9, 2026, the DGFT has clarified that a valid Import Authorisation issued by DGFT is sufficient for importing silver under the specified tariff classification, subject to the conditions endorsed on such Authorisation. Importers are not additionally required to possess Nominated Agency, IFSCA Qualified Jeweller or Export Oriented Unit (EOU) status, unless expressly stipulated in their Import Authorisation.
The clarification addresses representations received from the trade regarding eligibility requirements, Customs clearance and the applicability of imports through the India International Bullion Exchange (IIBX).
Silver Imports Under ITC(HS) 71069221 Continue to Remain ‘Restricted’
The DGFT has reiterated that, vide Notification No. 17/2026-27 dated May 16, 2026, the import policy for items falling under ITC(HS) Code 71069221 was revised from “Free, subject to RBI regulation” to “Restricted, subject to Policy Condition No. 7 to Chapter 71.”
Further, Paragraph 2.08 of the Foreign Trade Policy (FTP), 2023 provides that goods classified as restricted may be imported only against a valid Import Authorisation or in accordance with the procedure prescribed through a relevant Notification or Public Notice.
Accordingly, silver falling under ITC(HS) 71069221 can be imported against a valid DGFT Import Authorisation, except for imports specifically covered by exemptions available under Policy Condition No. 7.
DGFT Import Authorisation Sufficient; No Separate Nominated Agency or Qualified Jeweller Status Required
One of the most significant clarifications relates to whether an importer holding a valid DGFT Import Authorisation must also qualify as a Nominated Agency, IFSCA Qualified Jeweller or EOU.
The DGFT has clarified that such additional eligibility status is not mandatory for imports undertaken against a valid Import Authorisation, unless the Authorisation itself expressly prescribes such a condition.
The Import Authorisation is issued in the name of the Authorisation holder and covers the specific item, quantity and value mentioned therein, subject to the applicable conditions.
Consequently, the Authorisation holder may directly import silver in its own name, without separately establishing Nominated Agency, IFSCA Qualified Jeweller or EOU status, subject to compliance with the terms of the Authorisation.
Import Through India International Bullion Exchange (IIBX) Not Mandatory
The DGFT has also clarified that import of silver classified under ITC(HS) 71069221 through the India International Bullion Exchange (IIBX) is not mandatory, unless specifically required under the Import Authorisation.
This clarification is particularly relevant in view of the conditions introduced through DGFT Notification No. 19/2026-27 dated June 2, 2026, relating to certain precious-metal tariff classifications.
The DGFT has categorically clarified that the requirement concerning imports through IIBX, as introduced through the said Notification for IFSCA-notified Qualified Jewellers, does not extend to silver falling under ITC(HS) Code 71069221.
Accordingly, an eligible Authorisation holder is not required to route such imports through IIBX merely by virtue of holding an Import Authorisation for the specified silver item.
Notification No. 19/2026-27 Not Applicable to Silver Under ITC(HS) 71069221
The DGFT has further explained that Notification No. 19/2026-27 dated June 2, 2026 amended the import policy conditions only for items falling under the following ITC(HS) Codes:
- 71061000
- 71069110
- 71069120
- 71069190
The said Notification introduced Import Authorisation requirements for specified imports undertaken by Nominated Agencies notified by RBI/DGFT and IFSCA-notified Qualified Jewellers through IIBX.
However, ITC(HS) Code 71069221 is not covered by Notification No. 19/2026-27. Therefore, the additional conditions prescribed under that Notification do not apply to imports classified under this tariff entry.
Customs Authorities Directed to Process Clearance in Accordance With Clarification
To ensure uniform implementation, the DGFT has requested all Customs Authorities to process the clearance of consignments of silver falling under ITC(HS) Code 71069221 in accordance with the clarification contained in the Policy Circular.
Customs clearance will remain subject to verification of the respective Import Authorisation and compliance with the conditions prescribed therein, besides other applicable Customs requirements.
The Circular has also been addressed to all Regional Authorities of DGFT and members of Trade and Export Promotion Councils.
Significance for Silver Importers and the Bullion Trade
The clarification provides important regulatory certainty for importers dealing in silver classified under ITC(HS) 71069221.
It confirms that ordinary importers holding valid DGFT Import Authorisations need not independently satisfy special eligibility criteria relating to Nominated Agencies, IFSCA Qualified Jewellers or EOUs, unless required by the Authorisation itself.
Further, clarification regarding the non-mandatory nature of the IIBX route for this specific classification may help avoid unnecessary procedural disputes and facilitate Customs clearance of eligible silver consignments.
Importantly, the Circular does not change the restricted import status of silver under ITC(HS) 71069221. It clarifies the eligibility and procedural conditions applicable to imports against valid DGFT Authorisations.
Effect of the Policy Circular
Through Policy Circular No. 02/2026-27 dated October 9, 2026, the DGFT has clarified that:
- Valid DGFT Import Authorisation is sufficient for importing silver under ITC(HS) 71069221, subject to the conditions of the Authorisation and applicable policy exemptions.
- Nominated Agency, IFSCA Qualified Jeweller or EOU status is not additionally mandatory, unless expressly prescribed in the Import Authorisation.
- Import through IIBX is not compulsory for silver classified under ITC(HS) 71069221, unless specifically required under the Import Authorisation.
- Notification No. 19/2026-27 dated June 2, 2026 does not apply to ITC(HS) 71069221.
- Customs Authorities have been requested to process clearances in accordance with these clarifications and the conditions of the respective Import Authorisations.
The clarification is expected to facilitate consistent interpretation of the import policy and reduce uncertainty for eligible silver importers, while retaining the existing restricted import framework.
The Policy Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Circular-02-Clarification-on-import-of-Silver-under-ITCHS-71069221.pdf
