Silver Bar Imports Moved From "Free" to "Restricted": What Bullion and Jewellery Importers Must Know

India has tightened the door on silver bar imports. Through Notification No. 07/2026-27 (dated 16 May 2026), the Directorate General of Foreign Trade (DGFT) amended the import policy for silver bars under ITC(HS) 71069221 (silver bars containing 99.9% or more silver by weight) and ITC(HS) 71069229 (other silver bars), moving both categories from "Free" to "Restricted" with immediate effect.

In plain terms: what was once freely importable now requires a specific government authorisation before the goods can be cleared. This is a standing rule that affects bullion dealers, refiners and jewellery importers, and it is worth keeping front of mind because non-compliance can hold consignments at the border.

What Happened

Silver bars under the two specified ITC(HS) lines are now in the Restricted category. Import is permitted only in accordance with Policy Condition No. 7 of Chapter 71 of the ITC(HS) — meaning importers must obtain the applicable authorisation rather than importing on an open basis. Imports remain subject to the usual RBI foreign-exchange regulations that apply to precious-metal trade.

The restriction was notified with immediate effect from the date of the notification. Importers who previously relied on free importability for these lines must route fresh shipments through the authorisation pathway.

Why / Background

The change targets a sharp rise in silver bar imports. Restricting the "Free" status allows the government to channel imports through recognised routes and monitor volumes, addressing concerns about surging inbound shipments and the potential misuse of concessional or preferential channels. Bringing high-purity silver bars under authorisation gives the DGFT and Customs greater oversight of who is importing, in what quantity, and under what conditions.

This mirrors a broader tightening across Chapter 71 (precious metals and jewellery), where several categories have been re-examined and, in places, moved to Restricted to curb round-tripping and to protect domestic value addition.

Who's Affected

The rule affects importers of silver bars in the two specified ITC(HS) lines — principally bullion importers, refiners, and jewellery manufacturers who source refined silver. Traders who import silver in other forms should check their exact classification, because the restriction is defined at the tariff-line level and does not automatically extend to every silver product. Customs house agents handling precious-metal consignments should confirm the authorisation is in place before filing.

What Importers and CHAs Should Do Now

• Confirm your exact ITC(HS) classification. The restriction applies specifically to 71069221 and 71069229. Verify whether your product falls within these lines.
• Obtain the required authorisation in line with Policy Condition No. 7 of Chapter 71 before contracting or shipping.
• Do not file a bill of entry on a "Free" assumption for these lines — clearance now depends on valid authorisation.
• Review pending and in-transit shipments to ensure they are covered, and check any transitional treatment for goods already dispatched.
• Keep RBI/FEMA compliance aligned, as precious-metal imports remain subject to foreign-exchange rules.
• Reconfirm the current position against the latest DGFT notifications, since precious-metal import policy has been actively revised.

The Bigger Picture

Silver, like gold, sits at the intersection of trade policy, foreign-exchange management and domestic industry protection. Moving high-purity silver bars to Restricted is consistent with a policy direction that favours monitored, authorised import channels over open importability for precious metals — particularly where surging volumes or preferential-route arbitrage raise concerns. Importers should expect precious-metal tariff lines to remain an area of frequent policy change and should build authorisation lead-time into their procurement planning.

Frequently Asked Questions

Can I still import silver bars? Yes, but only under authorisation as provided in Policy Condition No. 7 of Chapter 71. The lines are Restricted, not prohibited.

Which exact products are covered? Silver bars under ITC(HS) 71069221 (99.9% or more silver by weight) and 71069229 (other). Confirm your product's classification.

When did this take effect? With immediate effect from the date of Notification No. 07/2026-27 (16 May 2026).

Does this apply to silver jewellery or other silver forms? The notification is specific to the two silver-bar lines. Other silver products have their own policy positions and should be checked separately.

Conclusion

If you import silver bars, treat authorisation as a prerequisite, not a formality. Confirm your ITC(HS) line, secure the required authorisation under Chapter 71, and verify the current policy position before every consignment.

This article is for general guidance only. Verify the exact text, classification and authorisation requirements in DGFT Notification No. 07/2026-27 and the current ITC(HS) import policy on the official DGFT portal before importing.