The DGFT issued Notification No. 03/2026-27 dated April 02, 2026, introducing significant amendments to the import policy and policy conditions under Chapter 71 of ITC (HS), 2022 (Schedule-I – Import Policy). The notification has been issued by the Directorate General of Foreign Trade (DGFT) with immediate effect.
Introduction of New Policy Condition for Imports
A new Policy Condition No. 07 has been introduced under Chapter 71. As per this provision:
- Imports by 100% Export Oriented Units (EOUs) and units located in Special Economic Zones (SEZs) will not be subject to the newly imposed restrictions, provided such goods are not diverted into the Domestic Tariff Area (DTA).
- Additionally, imports under schemes for export of Gems and Jewellery (Chapter 4 of FTP, 2023) are also exempted from these restrictions.
Key Changes in Import Policy of Precious Metals and Articles
The notification introduces a shift in the import status of several items from “Free” to “Restricted”, thereby tightening regulatory control. Key highlights include:
- Base metals or silver clad with gold (ITC HS 71090000): Status changed from Free to Restricted.
- Various platinum forms (under ITC HS 7110 series): Certain items have been liberalized from Restricted to Free, but with specific conditions.
- However, platinum alloys containing more than 1% gold by weight will continue to remain Restricted.
- Articles of precious metals (under ITC HS 7114 and 7115 series), including parts and other articles, have largely been shifted from Free to Restricted, subject to Policy Condition No. 07.
- Coins (other than legal tender) have also been reclassified from Free to Restricted.
Restriction on Transitional Arrangements
The notification clearly specifies that:
- The benefit of transitional arrangements under Para 1.05(b) of FTP, 2023 will not be applicable to the restrictions imposed through this notification.
- This means that even goods under prior contracts, letters of credit, or shipments in transit will not be exempt from the revised policy.
Immediate Implementation and Applicability
The revised import policy:
- Comes into force with immediate effect.
- Applies irrespective of prior contracts, irrevocable letters of credit, advance payments, or shipment status.
- Ensures strict enforcement without any transitional relief.
Objective and Impact of the Notification
The amendments aim to:
- Strengthen monitoring and regulation of imports of precious metals and related articles.
- Prevent misuse or diversion of imported precious metals into the domestic market.
- Ensure better alignment with export promotion schemes while safeguarding domestic economic interests.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/04/Notification-chp-71-English.pdf
