The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued Notification No. 03/2026-27, introducing major amendments to the import policy of precious metals and related items under Chapter 71 of ITC (HS) 2022.
The revised rules have come into immediate effect, tightening import norms for several categories, including gold, silver, platinum, and their alloys.
Key Highlights of the DGFT Notification
Introduction of Policy Condition No. 7
A new Policy Condition No. 7 has been introduced under Chapter 71, placing restrictions on the import of several items, especially those previously categorized as "Free."
Major Shift: 'Free' Imports Now 'Restricted'
The government has reclassified multiple items:
- Gold and silver articles
- Precious metal-clad items
- Industrial and laboratory goods made of precious metals
- Coins (non-legal tender)
These items, earlier freely importable, are now "Restricted" and subject to conditions.
Selective Relaxation for Platinum Imports
Some platinum imports have been liberalized from "Restricted' to "Free", but with a critical caveat:
- Imports are restricted if the gold content exceeds 1% by weight.
Exemption for Export-Oriented Units & SEZs
The notification provides relief to:
- 100% Export Oriented Units (EOUs)
- Units in Special Economic Zones (SEZs)
These entities are exempt from restrictions, provided imported goods are not diverted to the Domestic Tariff Area (DTA).
Additionally, imports under FTP 2023 schemes for gems and jewellery exports are also exempt.
No Transitional Benefit Allowed
In a strict compliance move:
- No grandfathering or transitional relief is available
- Rules apply even to prior contracts, LC arrangements, or shipments in transit
This ensures immediate enforcement across the board.
Impact on Industry
Importers & Traders
- Increased compliance burden
- Possible delays due to licensing requirements
Gems & Jewellery Sector
- Export-focused units benefit
- Domestic players may face tighter supply conditions
Industrial Users
- Restrictions on lab and industrial precious metal items may raise costs
Expert Take
This move signals the government's intent to:
- Control precious metal imports
- Prevent misuse and diversion
- Encourage export-led growth in the jewellery sector
Conclusion
The DGFT's latest notification marks a major policy shift in India’s import framework for precious metals . With immediate applicability and no transitional relief, stakeholders must quickly align their import strategies to remain compliant.
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