Introduction: The Directorate General of Foreign Trade (DGFT) has introduced notable amendments through Notification No. 57/2023, impacting the import policy for silver under Chapter 71 of ITC(HS) 2022. This directive, issued by the Ministry of Commerce and Industry, aims to refine the conditions governing the import of semi-manufactured silver for various industries.
Detailed Analysis: The key highlight of this notification is the introduction of Policy Condition no. 05 under Chapter 71 of Schedule-1(Import Policy) of ITC(HS) 2022. This condition specifies that the import of Semi-Manufactured Silver Paste, Sheets, Plates, Strips, Tubes, Electrodes, Wires, Silver Brazing Alloys (in any form) by Electrical, Electronics, and Engineering industries, including Glass and Solar Industries, for their own manufacturing process on an ‘Actual User’ basis shall be ‘Free.’
Furthermore, the import of the mentioned items for Research & Development purposes by the Government or Government Recognized Research Institutions is also categorized as ‘Free.’ Import for other purposes is permitted through Nominated Agencies as notified by RBI (in the case of banks) and DGFT (for other agencies).
The amendments extend to specific ITC(HS) codes, particularly 71069210 and 71069290, detailing the import policy conditions for semi-manufactured silver sheets, plates, strips, tubes, pipes, and other related items. The revised policy conditions now allow import through nominated agencies, as well as qualified jewellers notified by the IFSCA for import through India International Bullion Exchange (IIBX).
Conclusion: DGFT Notification 57/2023 brings significant changes to the import policy for silver, particularly semi-manufactured forms. The ‘Free’ status granted for actual users in specific industries and R&D purposes reflects a nuanced approach to facilitate essential imports. The involvement of specified agencies for imports for other purposes ensures regulatory oversight and compliance.
Businesses involved in the import of silver-related products should carefully review these amendments to align their practices with the revised policy conditions. The flexibility provided for different purposes underscores the government’s efforts to balance trade facilitation with necessary controls. As the notification comes into effect, stakeholders should stay abreast of any further developments or clarifications from the DGFT to ensure seamless compliance.
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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
New Delhi
Notification No. 57/2023-DGFT | Dated: 15th January, 2024
Subject: Amendment in policy condition of silver covered under Chapter 71 of Schedule –I (Import Policy) of ITC (HS) 2022.
S.O. 175(E).—In exercise of powers conferred by Section 3 and Section 5 of Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2023, as amended from time to time, the Central Government hereby makes the following amendments under Chapter 71 of Schedule-1(Import Policy) of ITC(HS) 2022:
1. Policy Condition no. 05 of the Chapter 71 is introduced as under:
i. Import of Semi-Manufactured Silver Paste, Sheets, Plates, Strips, Tubes, Electrodes, Wires, Silver Brazing Alloys(in any form), by Electrical, Electronics and Engineering industries including Glass and Solar Industries as input for their own manufacturing process on ‘Actual User’ Basis shall be ‘Free’.
ii. Import items mentioned at serial (i) above for Research & Development purposes by Government or Government Recognised Research Institutions shall also be ‘Free’.
iii. Import for other purposes is permitted through Nominated Agencies as notified by RBI (in case of banks) and DGFT (for other agencies).
2. The Import Policy condition for the following ITC(HS) Codes is amended as under:
|
ITC(HS) code & Description |
Import Policy | Existing Policy Condition | Revised Policy Condition |
| 71069210
– Other: –Semi- manufactured –Sheets, plates, strips, tubes and pipes |
Restricted | Import is allowed only through nominated agencies as notified by RBI (in case of banks) and DGFT (for other agencies). | Subject to Policy condition no. 05 of this Chapter. |
| 71069290
– Other: –Semi- |
Restricted | Import is allowed only through nominated agencies as notified by RBI (in case of banks), DGFT (for other agencies) and by qualified jewellers as notified by the IFSCA for import through India International bullion Exchange (IIBX). | Subject to Policy condition no. 05 of this Chapter.
Import for other purposes is also permitted through Qualified Jewellers as notified by the IFSCA for import through India International bullion Exchange |
Effect of the notification: Import of Semi-Manufactured Silver Paste, Sheets, Plates, Strips, Tubes, Electrodes, Wires, Silver Brazing Alloys(in any form), by Electrical, Electronics and Engineering industries including Glass and Solar Industries as input for their own manufacturing process on ‘Actual User’ basis shall be ‘Free’. Import of given items for R&D purposes by Government or Government Recognised Institutions shall also be ‘Free’. Import for any other purposes shall be through specified agencies as per the earlier provisions.
This is issued with the approval of Minister of Commerce & Industry.
[F. No. 01/89/180/36/AM-11/PC-2[A]/Part-VII /E-34827]
SANTOSH KUMAR SARANGI, Director General of Foreign Trade & Ex-officio Addl. Secy.
