Summary: The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has issued Policy Circular No. 02/2026-27 dated 9 October 2026 clarifying the conditions governing imports of silver classified under ITC(HS) code 71069221. The clarification addresses representations from traders regarding whether a valid DGFT Import Authorisation for restricted items is sufficient for customs clearance and whether importers must additionally qualify as Nominated Agencies, International Financial Services Centres Authority (IFSCA) Qualified Jewellers or Export Oriented Units (EOUs). The circular also clarifies whether imports through the India International Bullion Exchange (IIBX) are compulsory.
DGFT has explained that Notification No. 17/2026-27 dated 16 May 2026 changed the import policy for silver under ITC(HS) 71069221 from “Free, subject to RBI regulation” to “Restricted, subject to Policy Condition No. 7 to Chapter 71”. Under Paragraph 2.08 of the Foreign Trade Policy, 2023, restricted goods may be imported against a valid DGFT authorisation or under procedures prescribed through applicable notifications or public notices. Accordingly, silver classified under this tariff heading may be imported against a valid authorisation, except where an exemption under Policy Condition No. 7 applies.
The circular expressly clarifies that Nominated Agency, IFSCA Qualified Jeweller or EOU status is not an additional eligibility requirement for importing silver against a valid DGFT Import Authorisation, unless the authorisation itself specifically imposes such a condition. The authorisation holder may therefore import the specified goods directly in its own name, subject to the item description, quantity, value and other conditions endorsed on the authorisation. This clarification removes uncertainty regarding whether authorisation holders must separately establish eligibility under one of these categories before obtaining customs clearance.
DGFT has further distinguished Notification No. 19/2026-27 dated 2 June 2026, which amended the policy conditions applicable to ITC(HS) codes 71061000, 71069110, 71069120 and 71069190. Those amendments include conditions relating to Qualified Jewellers and imports through IIBX but do not extend to silver classified under ITC(HS) 71069221. Consequently, imports through IIBX are not mandatory for the silver covered by code 71069221 unless the particular Import Authorisation expressly requires that route. The restrictions introduced through Notification No. 19/2026-27 cannot automatically be applied to this separate tariff classification.
The circular directs Customs Authorities to process the clearance of silver consignments falling under ITC(HS) 71069221 in accordance with these clarifications and the conditions specified in the respective Import Authorisations. Importers holding valid authorisations may rely on the circular to establish that separate Nominated Agency, Qualified Jeweller or EOU status and compulsory routing through IIBX are not general prerequisites for clearance. However, they must continue to comply with the specific terms of their authorisations and all applicable import requirements.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Policy Circular No. 02/2026-27-DGFT | Dated:9 October 2026
To,
1. All Customs Authorities
2. All Regional Authorities of DGFT
3. All Members of Trade / Export Promotion Councils
Subject: Clarification on import of Silver under ITC(HS) 71069221 against Import Authorisation for import of Restricted items issued by DGFT– reg.
Representations have been received from members of the trade seeking clarification on the import of Silver under ITC(HS) 71069221 against Import Authorisations issued by DGFT.
2. The applicable import policy of items classified under ITC(HS) 71069221 is given as under:
2.1 DGFT Notification No. 17/2026-27 dated 16.05.2026 revised the import policy for items covered under ITC(HS) 71069221 from “Free, subject to RBI regulation” to “Restricted, subject to Policy Condition No. 7 to Chapter 71”.
2.2 Para 2.08 of the Foreign Trade Policy(FTP), 2023 provides that goods whose import is “Restricted” may be imported only in accordance with an Authorisation, or in accordance with the procedure prescribed in a Notification or Public Notice issued in this regard.
2.3 Accordingly, items under the ITC(HS) code 71069221 may be imported only against a valid Import Authorisation issued by DGFT, except for imports covered by the exemptions under Policy Condition No. 7.
2.4 DGFT Notification No. 19/2026-27 dated 02.06.2026 amended the import policy condition only for items covered under ITC(HS) codes 71061000, 71069110, 71069120 and 71069190. Under Notification No. 19/2026-27 dated 02.06.2026, imports by Nominated Agencies notified by RBI/DGFT and by International Financial Services Centres Authority (IFSCA) notified Qualified Jewellers through India International Bullion Exchange (IIBX), now also require a valid Import Authorisation.
2.5 Items covered under ITC(HS) 71069221 do not fall within the scope of Notification No. 19/2026-27 dated 02.06.2026. The conditions prescribed in that Notification therefore do not apply to silver classified under ITC(HS) code 71069221.
3. The issues raised by various importers are listed as under:
3.1. Is a valid DGFT Authorisation, by itself, enough for clearance in the name of the Authorisation holder, irrespective of its Nominated Agency / IFSCA Qualified Jeweller / EOU status?
3.2. Must the Authorisation holder also separately satisfy a Nominated Agency / Qualified Jeweller / EOU eligibility condition?
3.3. Does the requirement of import through IIBX apply only to Qualified Jewellers, or also to Nominated Agencies notified by RBI/DGFT?
4. The aforesaid issues have been examined in this Directorate and is clarified in the following paragraphs.
4.1. The import policy for ITC(HS) 71069221 is “Restricted”. Under Para 2.08 of the FTP, 2023, the requirement for import of a restricted item is a valid Authorisation issued by DGFT.
4.2. Further, DGFT issues an Import Authorisation for Import of Restricted Items in the name of the Authorisation holder. It covers the specific item, quantity and value shown in it, and is subject to the conditions endorsed on it.
4.3. Therefore, Nominated Agency, IFSCA Qualified Jeweller or EOU status is not an additional eligibility condition for import against such an Import Authorisation, unless the Authorisation itself specifically imposes a condition to that effect and the Authorisation holder may import the goods directly in its own name against it subject to the other conditions of the Authorisation.
4.4. Further, the requirement of Import Authorisation for import through IIBX is part of the policy condition amended vide Notification No. 19/2026-27 dated 02.06.2026. It applies to Qualified Jewellers notified by IFSCA, and only for the ITC(HS) codes covered by Notification No. 19/2026-27 dated 02.06.2026. The condition does not apply to items covered under ITC(HS) 71069221.
4.5. Therefore, import through IIBX is not mandatory for import of items classified under ITC(HS) 71069221 unless the Import Authorisation specifically imposes such a condition.
5. Customs Authorities are requested to process clearance of consignments of silver classified under ITCHS code 71069221 in line with this clarification and the conditions of the respective Import Authorisations, as per the extant procedure.
This is issued with the approval of the Director General of Foreign Trade.
(Satya Raja Sekhar G)
Joint Director General of Foreign Trade
Email: [email protected]
[Issued from File No. 01/89/180/46/AM-26/PC-2(A)/Part-I/E-47795]
