India Tightens Silver Import Rules, Government Approval Now Compulsory

New Delhi: The Central government has imposed stricter controls on silver imports by moving several categories of the precious metal from the “free” import list to the “restricted” category, according to a new notification issued on Saturday.

Under the revised policy, importers will now need prior government approval to bring in silver bars with 99.9 per cent purity, unwrought silver, semi-manufactured silver and silver powder into the country. Some import categories will also remain subject to Reserve Bank of India (RBI) regulations, increasing financial compliance requirements.

The new rules have been introduced through amendments to the ITC (HS) import policy schedule and have come into effect immediately.

The move significantly tightens monitoring of silver imports across sectors including bullion trading, jewellery manufacturing, industrial production and investment markets. Earlier, most of these silver categories could be imported under the “free” regime with standard clearances and minimal restrictions.

With the latest changes, importers must obtain explicit approval from authorities before importing bullion-grade and semi-processed silver products. Industry experts believe the decision is aimed at improving oversight of precious metal inflows and preventing excessive imports.

The restrictions come as part of the government’s broader efforts to reduce pressure on the country’s import bill and strengthen regulation of the precious metals trade. Previously, the Centre had raised import duties on gold and silver from 6 per cent to 15 per cent.

The Directorate General of Foreign Trade (DGFT) has also recently tightened norms for duty-free gold imports under the Advance Authorisation (AA) scheme used by gems and jewellery exporters.

Under the updated guidelines, gold imports through the AA scheme are now capped at 100 kilograms per licence. New applicants must also undergo physical inspections of their manufacturing units before approvals are granted.

In addition, the DGFT has introduced stricter compliance requirements for repeat applicants, including tighter export obligations and enhanced reporting backed by chartered accountant certifications.

The fresh curbs on silver imports are expected to increase regulatory scrutiny in the precious metals sector and may impact bullion traders, jewellers and industries that rely heavily on imported silver.

With inputs from IANS