Govt imposes fresh curbs on silver imports, approval now mandatory
New Delhi, May 16
India has tightened oversight of silver imports by shifting several categories of the precious metal from the "free" import policy regime to the "restricted" category, according to a fresh government notification issued on Saturday.
Under the revised framework, imports of silver bars with 99.9 per cent purity, unwrought silver, semi-manufactured silver and silver powder will now require prior government approval before shipments can enter the country. Certain categories of imports will also continue to fall under Reserve Bank of India (RBI) regulations, adding stricter financial compliance requirements for importers.
The changes have been introduced through amendments to the import policy schedule under the ITC (HS) classification and take immediate effect.
The move marks a significant tightening of control over the silver supply chain, covering a wide range of products used across industrial, manufacturing and investment segments. Until now, most of these categories were imported under the "free" regime, which allowed shipments with standard regulatory clearances and limited restrictions.
With the latest notification, importers will now have to seek explicit approval from authorities before bringing in consignments of bullion-grade silver and semi-processed silver products. Industry observers believe the step is aimed at improving monitoring of precious metal inflows and curbing excessive imports.
The latest curbs come amid the government's broader push to reduce pressure on India's import bill and strengthen oversight of precious metals trade. Earlier, the Centre had increased import duties on gold and silver to 15 percent from 6 percent.
In parallel, the Directorate General of Foreign Trade (DGFT) recently tightened rules governing duty-free gold imports under the Advance Authorisation (AA) scheme used by gems and jewellery exporters.
Under the revised norms, gold imports under the AA scheme have been capped at 100 kilograms per licence. First-time applicants are now required to undergo physical inspection of manufacturing facilities before approvals are granted.
The DGFT has also introduced tougher compliance measures for repeat applicants, including stricter export obligation conditions and enhanced reporting requirements supported by chartered accountant certifications.
The latest restrictions on silver imports are expected to increase regulatory scrutiny across the precious metals sector while potentially impacting bullion traders, jewellery manufacturers and industrial users dependent on imported silver supplies.
— IANS
Reader Comments
First gold duties went up, now silver restrictions. Small jewellers like my uncle will suffer. He relies on imported silver for his business. Hope the government gives easy approvals, yaar. 😔
Chalo, at least they are monitoring now. But why only silver? Similar restrictions should be on gold too. And what about the black money angle? Need more transparency in this sector.
As a silver investor, I'm concerned! The industrial demand will create chaos in the market. But I understand the government's need to monitor imports. Hopefully, this doesn't lead to shortages. 🙏
Typical bureaucratic move! Instead of making it easier for businesses, they add more red tape. The approval process will just lead to delays and corruption. Need a simpler system, not more restrictions.
This is smart economics. We already spend too much on gold and silver imports. Curbing unnecessary luxury imports and focusing on industrial use is the way forward. Well done, government! 👏
The jewellery industry will be hit hard. Many small-scale artisans depend on imported silver. Hope the government has a plan to support MSMEs. Also, what about the silver ETFs? Will this affect them? 🤔