Regulatory Update
DGFT Notification 17/2026-27 — Immediate Effect

Silver Bar Imports Moved from “Free” to “Restricted” under HS 71069221 & 71069229

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. The import status has been 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

HS 71069221
Silver bars containing 99.9% or more by weight of silver
HS 71069229
Silver bars — Other (below 99.9% purity)
Parent heading 7106
Silver, including silver plated with gold or platinum, in unwrought, semi-manufactured or powder form

Before vs. After the Amendment

Earlier Position

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.

Revised Position

Restricted — Authorization Required

Imports are now “Restricted” and 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.


Notification Timeline

16 May 2026
DGFT issues Notification No. 17/2026-27 amending the import policy for silver bars under HS 71069221 and 71069229
16 May 2026
Revised policy takes effect immediately — no transition period for fresh consignments
Going forward
All new silver bar imports under these HS codes require authorization under Policy Condition No. 7 of Chapter 71

Implications for the Trade

Impact 01

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.

Impact 02

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.

Impact 03

Traders & Refiners

Traders importing silver bars for the domestic market or for further refining will need to reassess sourcing strategies and ensure that import documentation, end-use declarations and channel compliance match the revised policy.

Impact 04

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 the treatment of such shipments.


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 application for import authorization 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

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 that comes with 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 — Trusted Regulatory Partner

Deep experience with DGFT, BIS, PESO, RBI and Customs procedures

End-to-end support on import authorizations and notifications under ITC (HS)

Practical, execution-oriented guidance tailored to each importer’s business model

Continuous monitoring of DGFT notifications, public notices and trade circulars


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.


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.

Need help navigating the new silver import regime?

Omega QMS supports importers, manufacturers and trading houses with DGFT authorizations, classification reviews and end-to-end compliance for restricted items. Write to us at info@globalomega.com, call us at 011-41413939 (100 lines), or visit globalomega.com/contact for a tailored advisory on this notification.

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