Published: 18 May 2026
DGFT Restricts Silver Bar Imports under HS 71069221 & 71069229 — Notification 17/2026-27>
Omega QMS Compliance Insights
Omega QMS
The Directorate General of Foreign Trade (DGFT) has amended the import policy for silver bars under Chapter 71 of ITC (HS) 2022, Schedule – I. With effect from 16 May 2026, imports of silver bars (99.9% purity and other bars) are no longer freely importable and now require authorization under Policy Condition No. 7 of Chapter 71.
What the Notification Changes
Through Notification No. 17/2026-27 dated 16 May 2026, the Central Government has exercised its powers under Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023, to amend the import policy of silver bars covered under ITC (HS) codes 71069221 and 71069229.
Import status changed from “Free” (subject to RBI regulations) to “Restricted” (subject to Policy Condition No. 7 of Chapter 71), with immediate effect.
HS Codes Affected by the Amendment
Silver bars containing 99.9% or more by weight of silver
Silver bars, other (below 99.9% purity)
Parent heading: silver, including silver plated with gold or platinum, in unwrought, semi-manufactured or powder form
Before vs. After the Amendment
Free: Imports under RBI Regulations
Silver bars under HS 71069221 and 71069229 were freely importable, subject only to applicable RBI regulations governing bullion imports. No DGFT authorization was required for ordinary importers meeting RBI’s prescribed channels.
Restricted: Authorization Required
Imports are now subject to Policy Condition No. 7 of Chapter 71 of ITC (HS), 2022, Schedule – I. Importers must obtain prior authorization from DGFT in line with the channels prescribed under that policy condition.
No transition period for fresh consignments. The revised policy took effect on 16 May 2026. All new silver bar imports under these HS codes require authorization under Policy Condition No. 7 of Chapter 71.
Implications for the Trade
Bullion Importers & Banks
Nominated agencies and bullion importers who previously imported silver bars under the “Free” route must now align with the Restricted regime and obtain DGFT authorization before booking new consignments.
Jewellery & Silverware Manufacturers
Manufacturers relying on imported silver bars as raw material will need to plan procurement around the authorization process, with potential implications for lead times and inventory cycles.
Traders & Refiners
Traders importing silver bars for the domestic market or further refining will need to reassess sourcing strategies and ensure import documentation, end-use declarations and channel compliance match the revised policy.
Goods Already in Transit
Since the change is effective immediately, importers with consignments in transit or pending clearance should review contractual and documentary positions and engage with DGFT and Customs on their treatment.
What “Restricted” Means in Practice
An item listed as “Restricted” in ITC (HS) Schedule – I cannot be imported freely. Importers must apply for and obtain a specific import authorization from DGFT, subject to the conditions attached to the relevant policy condition, in this case Policy Condition No. 7 of Chapter 71. Typical compliance steps include:
- Classification review to confirm whether consignments fall under HS 71069221 or 71069229
- Reading Policy Condition No. 7 of Chapter 71 carefully to identify eligible channels and end-use restrictions
- Filing an import authorization application through the DGFT online system with supporting documents
- Aligning RBI bullion import procedures, customs declarations and end-use undertakings with the new authorization
- Updating internal procurement, contracts and SOPs to reflect the Restricted status
- Monitoring further clarifications, public notices or trade notices from DGFT on operational details
Strategic Implications
Regulatory
Silver bar imports now sit firmly within DGFT’s licensing regime. Compliance, documentation and end-use control take on much greater importance for every importer.
Commercial
Procurement cycles, pricing and inventory planning for bullion users will need to absorb the additional lead time and approval risk of a Restricted regime.
Strategic
The move signals a more calibrated approach to bullion imports and may encourage greater channel discipline, domestic refining and traceable sourcing across the silver value chain.
Advisory & Authorization Support for Silver Importers
Omega QMS works with bullion importers, jewellery manufacturers, refiners and trading houses to navigate India’s evolving import policy environment. For this notification, our team supports clients across the full lifecycle, from interpretation of the policy text to securing DGFT authorizations and aligning downstream compliance.
- Interpretation of Notification No. 17/2026-27 and Policy Condition No. 7 of Chapter 71
- Classification reviews to confirm correct HS coding of silver bar shipments
- Preparation and filing of DGFT import authorization applications
- Liaison with DGFT, RBI nominated agencies and Customs on operational issues
- Advisory on consignments in transit and pending bill-of-entry shipments
- Updating internal SOPs, contracts and supplier communications to reflect the revised regime
Omega QMS brings deep experience with DGFT, BIS, PESO, RBI and Customs procedures, end-to-end support on import authorizations and notifications under ITC (HS), and continuous monitoring of DGFT notifications, public notices and trade circulars.
Key Insight
A single line in a DGFT notification, “Free” becoming “Restricted”, can reshape sourcing strategy, working capital and contractual exposure for an entire industry overnight. The cost of being unprepared is almost always higher than the cost of getting compliance right at the start.
Need Help Navigating the New Silver Import Regime?
We support importers, manufacturers and trading houses with DGFT authorizations, classification reviews and end-to-end compliance for restricted items.
Reference: DGFT Notification No. 17/2026-27 dated 16 May 2026, F. No. 01/89/180/36/AM-11/PC-2[A]/Part-VI/E-34691, issued under the signature of Shri Lav Agarwal, Director General of Foreign Trade & Ex-officio Additional Secretary, Ministry of Commerce and Industry, Department of Commerce. Gazette reference: CG-DL-E-16052026-272636, Part II – Section 3 – Sub-section (ii), No. 2445, New Delhi, Saturday, 16 May 2026.
