IFSCA-Approved Jewelers Can Import Silver via IIBX: DGFT

Introduction: The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has introduced a significant amendment to the import policy conditions for silver. This amendment opens up new opportunities for IFSCA-approved jewelers to import silver through the India International Bullion Exchange IFSC Ltd. (IIBX). In this article, we will delve into the details of this amendment and its potential impact on the industry.

Detailed Analysis: The recent notification, No. 35/2023-DGFT dated 11th October, 2023, has made alterations to the import policy conditions for silver as specified under HS codes 71069110 and 71069290 of Chapter 71 of Schedule-1 (Import Policy) of ITC HS, 2022.

Code 71069110 (Grains):

• Existing Policy Condition: The import of silver grains in this category was restricted, allowing it only through nominated agencies as notified by RBI (in the case of banks) and DGFT (for other agencies). Silver dore imports were permitted for refineries holding a license with AU (Authorized User) condition.
• Revised Policy Condition: The amendment expands the list of entities permitted to import under this category. In addition to the previously mentioned nominated agencies, qualified jewelers, as notified by the International Financial Services Centres Authority (IFSCA), are now eligible to import silver under this code through the India International Bullion Exchange (IIBX). The import by refineries with an AU condition remains unchanged.

Code 71069290 (Other):

• Existing Policy Condition: The import of silver under this category was also restricted, and it was limited to nominated agencies as notified by RBI (for banks) and DGFT (for other agencies).
• Revised Policy Condition: Similar to the previous category, the amendment allows qualified jewelers, as notified by IFSCA, to import silver under these specific ITC(HS) codes via the India International Bullion Exchange (IIBX). Nominated agencies’ role in facilitating these imports remains unchanged.

Conclusion: This significant amendment opens new avenues for IFSCA-approved jewelers to participate in the import of silver under the specified ITC(HS) codes. The inclusion of qualified jewelers, as notified by IFSCA, as eligible importers is a positive step toward promoting transparency and inclusivity in the industry. As this amendment takes effect, industry players should be aware of the new opportunities it brings and adapt their strategies accordingly. The Ministry of Commerce & Industry’s approval of this amendment reflects its commitment to facilitating trade and commerce in the country.

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MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)

Notification No. 35/2023-DGFT Dated: 11th October, 2023

Subject : Amendment in import policy condition of silver Covered under Chapter 71 of Schedule –I (Import Policy) of ITC (HS), 2022.

S.O. 4423(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 amends the import policy conditions for silver under HS codes 71069110 and 71069290 of Chapter 71 of Schedule-1(Import Policy) of ITC HS, 2022 as under:

2. Effect of the notification: In addition to nominated agencies as notified by RBI (in case of banks) and nominated agencies notified by DGFT, qualified jewellers as notified by International Financial Services Centres Authority (IFSCA) will be permitted to import Silver under above mentioned specific ITC(HS) codes through India International Bullion Exchange IFSC Ltd. (IIBX).

This issue with the approval of Minister of Commerce & Industry.

[F. No.01/89/180/36/AM-11/PC-2[A]/E-1678]

SANTOSH KUMAR SARANGI, Director General of Foreign Trade
& Ex-officio Addl. Secy