India Restricts Silver Bar Imports, Government Approval Now Mandatory

India has tightened rules on silver bar imports and other silver forms, moving several categories from “free” to “restricted” status with immediate effect. Importers of 99.9 percent purity bars, unwrought silver, semi-manufactured products and silver powder must now obtain government permission before consignments are cleared.

The notification, issued by the Directorate General of Foreign Trade, forms part of wider steps to manage precious metals inflows and the import bill. Earlier, the Centre raised customs duty on both gold and silver to 15 percent, up from 6 percent, signalling closer scrutiny of these commodities.

New approval rules for silver imports and RBI oversight

Under the revised import policy, silver bars imports have shifted from the “Free” category to the “Restricted” regime. Shipments listed under ITC (HS) codes 71069221 and 71069229 now need prior approval from authorities. Certain silver imports will also remain under Reserve Bank of India regulations, adding financial checks in addition to trade permissions.

Policy schedule changes for silver imports under ITC (HS)

The government has amended the import policy schedule within the ITC (HS) classification to capture the new controls. The changes cover multiple forms of silver that feed both investment demand and industrial processing. This includes bullion-grade bars, unwrought silver, semi-finished inputs and powder used in different manufacturing supply chains.

Previously, most of these silver imports were treated as “free”, meaning consignments faced only routine customs and regulatory checks. After the latest revision, importers cannot bring in affected categories without first securing explicit approval. The notification states that the amended regime applies with immediate effect, leaving little room for transition.

Earlier duty changes and silver imports under broader metals strategy

The new silver import restrictions follow earlier tax measures on precious metals. By lifting the basic customs duty for gold and silver from 6 percent to 15 percent, the Centre aimed to temper import volumes and address concerns about the current account. The latest policy shift tightens non-tariff controls alongside higher duties.

Advance Authorisation gold norms linked with silver imports policy mood

Along with higher duties, DGFT reworked rules for duty-free gold sourced under the Advance Authorisation scheme. Gold imports under AA are now capped at 100 kg per licence. First-time applicants must allow physical checks of their manufacturing units before the authorities grant approval for such imports.

Repeat users of the AA scheme have also seen compliance tightened. DGFT has linked continued access to factors such as meeting export obligations on time. The framework now includes more detailed reporting, backed by certifications from chartered accountants, to support monitoring of scheme usage and detect any misuse.

Key numerical aspects of the policy environment for precious metals and silver imports are set out below.

Overall, the government has layered new permissions, inspections and reporting on top of higher duties for precious metals. Silver bar imports, now under the restricted category and RBI oversight, sit within this tighter framework that seeks closer control of both trade flows and related financial activity.