India imposes immediate curbs on silver bar imports, permits mandatory for 99.9% purity category

The Centre has tightened rules governing silver imports by moving several categories of the precious metal from the “free” import regime to the “restricted” category, according to an official notification issued by the government.

Under the revised policy, imports of silver bars with 99.9 per cent purity, unwrought silver, semi-manufactured silver and silver powder will now require prior government approval before shipments can enter the country. Certain categories will also continue to remain subject to Reserve Bank of India regulations.

The changes were introduced through amendments to the import policy schedule under the ITC (HS) classification and took effect immediately.

Tighter oversight on silver imports

The revised framework covers a wide range of silver products used in investment, bullion trading and manufacturing sectors. These include bullion-grade silver bars as well as semi-processed forms commonly used by industrial units and jewellery manufacturers.

Earlier, these products could largely be imported freely with routine regulatory clearances. Under the new rules, however, importers must secure specific government permission before bringing such consignments into India.

Officials said the move is aimed at strengthening oversight over precious metal inflows and ensuring tighter monitoring of imports.

Imports shifted to restricted category

With the notification, silver bars, unwrought silver, semi-manufactured silver and silver powder have formally been placed under the “restricted” import category. This means importers can no longer import these products automatically and will need explicit approval from the authorities.

In addition, certain categories of imports will remain governed by RBI guidelines, creating an additional compliance layer for traders and importers dealing in high-value precious metals.

Part of broader policy tightening

The latest decision comes amid a broader government push to regulate precious metal imports and manage the country’s rising import bill.

Earlier, the Centre increased customs duties on gold and silver imports to 15 per cent from 6 per cent. The Directorate General of Foreign Trade (DGFT) had also tightened norms for duty-free gold imports under the Advance Authorisation scheme used by gems and jewellery exporters.

Under the revised rules, duty-free gold imports under the scheme were capped at 100 kg per licence. First-time applicants were also made subject to mandatory physical inspection of manufacturing units before approvals could be granted.

The DGFT additionally introduced stricter compliance norms for repeat applicants, including tighter export obligation conditions and enhanced reporting requirements supported by chartered accountant certifications.