Importing Silver Bars in 2026? DGFT Just Said Your Licence Alone Is Enough

By Pratham Agarwal, Rasp International. Reviewed against Directorate General of Foreign Trade (DGFT) Policy Circular No. 02/2026-27 dated 9 October 2026. Verified as on 13 October 2026.

The short answer, before anything else

If you hold a valid DGFT Import Authorisation (a licence from the Directorate General of Foreign Trade) for silver bars under ITC(HS) 71069221 (ITC(HS) is the Indian Trade Classification code list based on the Harmonised System), that Authorisation alone is enough for customs clearance. DGFT Policy Circular No. 02/2026-27 dated 9 October 2026 says you do not also need Nominated Agency, IFSCA (International Financial Services Centres Authority) Qualified Jeweller or Export Oriented Unit (EOU) status. Import through IIBX (India International Bullion Exchange) is not mandatory either, unless your Authorisation says so.

The rule that decides everything: read the conditions printed on your own Import Authorisation. If the Authorisation adds a condition, that condition binds you. If it does not, the Authorisation is enough.

Why we are writing this

Silver bar imports went from “Free” to “Restricted” overnight. DGFT Notification No. 17/2026-27 dated 16 May 2026 made the change with immediate effect. Then DGFT Notification No. 19/2026-27 dated 2 June 2026 tightened the rules for silver powder, grains and unwrought silver. For almost five months, importers holding a valid licence did not know if customs would also ask for Nominated Agency status or an IIBX route.

The confusion was serious enough that the trade wrote to DGFT. Policy Circular No. 02/2026-27 says in its opening line that representations were received from members of the trade. A government circular only gets written when real shipments are getting stuck.

Fact checked against DGFT Policy Circular No. 02/2026-27 dated 9 October 2026, DGFT Notification No. 17/2026-27 and DGFT Notification No. 19/2026-27. Last regulatory review: October 2026.

Rasp International is a DGFT and EXIM (export and import) advisory firm. We file DGFT licence applications for a living, and we read every circular line by line before we tell a client to ship.

What is Policy Circular 02/2026-27 on silver imports

DGFT Policy Circular No. 02/2026-27 is a clarification that tells customs how to clear silver bars under ITC(HS) 71069221 imported against a DGFT Import Authorisation. It was issued by the Directorate General of Foreign Trade under Foreign Trade Policy 2023, signed by Joint Director General Satya Raja Sekhar G, and sent to all Customs Authorities, all DGFT Regional Authorities and all members of Trade and Export Promotion Councils.

A policy circular is not a new rule. It is DGFT explaining how an existing rule should be read. That matters, because customs officers follow DGFT’s reading of DGFT’s own notifications.

The circular answers three questions that importers asked:

• Question 1. Is a valid DGFT Authorisation, by itself, enough for clearance in the holder’s name? DGFT answer: Yes.
• Question 2. Must the holder also qualify as a Nominated Agency, IFSCA Qualified Jeweller or EOU? DGFT answer: No, unless the Authorisation itself imposes that condition.
• Question 3. Does the IIBX route apply only to Qualified Jewellers, or also to Nominated Agencies? DGFT answer: The IIBX requirement comes from Notification No. 19/2026-27, which applies to Qualified Jewellers and only to the codes in that notification. It does not apply to 71069221.

Three terms you will see again:

• Nominated Agency is a bank notified by the Reserve Bank of India (RBI), or another agency notified by DGFT, that is allowed to import precious metals.
• IFSCA Qualified Jeweller is a jeweller notified by the International Financial Services Centres Authority (IFSCA) to buy bullion on IIBX.
• IIBX is the India International Bullion Exchange, the bullion exchange at GIFT City in Gujarat.

What the silver import rules actually require in 2026

The silver import rules in 2026 depend on one thing first: the exact ITC(HS) code of the silver you import. Bars, grains, powder and unwrought silver sit under different codes, and each code now has a different route. The table below maps every situation we see, with the source next to each line.

One time requirement: a valid Import Authorisation for the item, quantity and value you plan to import. Recurring requirement: every consignment must match the item, quantity, value and conditions printed on that Authorisation (Policy Circular No. 02/2026-27, Para 4.2).

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What changed for silver imports in 2026, old versus new

Silver imports changed three times in 2026: on 16 May, on 2 June and on 9 October. The table below shows each change and what it means for an importer.

Where official sources on silver imports do not match

Before you spend money on a silver shipment, check these four points. Each one is a place where two documents or two reports do not line up.

1. The circular covers only 71069221. DGFT Notification No. 17/2026-27 restricted two codes: 71069221 (bars of 99.9 percent or more) and 71069229 (other bars). Policy Circular 02/2026-27 only talks about 71069221. So the “Authorisation alone is enough” clarification is written for 71069221 only. If you import bars below 99.9 percent, do not assume the same reading. Ask DGFT or get it written into your Authorisation.

2. One summary lists the wrong codes. A published summary of the IFSCA circular dated 15 June 2026 describes Notification No. 17/2026-27 as covering 71069110, 71069120 and 71069221. DGFT’s own Policy Circular 02/2026-27 says the codes 71069110 and 71069120 were handled by Notification No. 19/2026-27. Trust the DGFT notification text, not a summary.

3. The exemption text is not in the circular. Policy Circular 02/2026-27, Para 2.3, says imports covered by the exemptions under Policy Condition No. 7 do not need an Authorisation. The circular does not list those exemptions. Read Policy Condition No. 7 in Chapter 71 of ITC(HS) 2022, Schedule I, on the DGFT portal before you rely on any exemption.

4. Two dates are reported for the May change. Some reports say the restriction started on 16 May 2026 and others say 17 May 2026. If your shipment landed in that window, check the date on the Gazette copy of Notification No. 17/2026-27.

How to verify: download each notification and the circular from the DGFT website, save the PDFs with your shipment file and keep a printout of Policy Circular 02/2026-27 with your customs broker.

Who can import silver bars under 71069221 and who cannot

Who qualifies

• Any firm with a valid Importer Exporter Code (IEC), the 10 digit code every importer and exporter in India needs.
• That holds a valid DGFT Import Authorisation for 71069221, issued in its own name.
• Importing the item, quantity and value written on that Authorisation, following every condition endorsed on it (Policy Circular 02/2026-27, Para 4.2).
• Or whose import is covered by an exemption under Policy Condition No. 7 to Chapter 71 (Policy Circular 02/2026-27, Para 2.3).

Who is NOT covered by this clarification

• Importers without an Authorisation. The circular does not remove the licence requirement. It only removes the extra status tests.
• Importers of silver bars below 99.9 percent, 71069229. The circular is silent on this code.
• Importers of silver powder, grains or unwrought silver. These codes follow Notification No. 19/2026-27, which keeps the Nominated Agency and IIBX routes and adds the Authorisation requirement.
• A sister company or group firm using your Authorisation. DGFT issues the Authorisation in the name of the holder (Policy Circular 02/2026-27, Para 4.2). The import must be in that name.
• Anyone whose Authorisation carries an IIBX, Nominated Agency, Qualified Jeweller or EOU condition. For you, that condition still applies.

Edge cases that trip up silver importers

Edge case 1: the grain versus bar trap. A buyer orders 99.9 percent silver. The supplier ships grains, not bars. Grains fall under 71069110 and unwrought 99.9 percent silver falls under 71069120, both governed by Notification No. 19/2026-27. Those codes need the Nominated Agency or IIBX route plus an Authorisation. Your bar Authorisation for 71069221 will not cover grains. Fix the product form in the purchase order before the supplier ships.

Edge case 2: the hidden condition on your licence. An importer gets an Authorisation for 71069221 and assumes the October circular frees it from IIBX. But the Authorisation has an IIBX condition endorsed on it. Policy Circular 02/2026-27, Para 4.5, says IIBX is not mandatory “unless the Import Authorisation specifically imposes such a condition”. The endorsement wins. Read the conditions page of your licence first.

Edge case 3: the shipment that grew. The Authorisation is for a set quantity and value. The supplier offers a better rate for a bigger lot. The extra kilograms are not covered, because the Authorisation covers only the item, quantity and value shown in it (Policy Circular 02/2026-27, Para 4.2). The excess can be held at the port.

Edge case 4: the SEZ jewellery unit. An SEZ unit that exports jewellery wants bars from IIBX. IFSCA Circular dated 15 June 2026 lets such a unit buy 71069221 bars through IIBX without being notified as a Qualified Jeweller, if it meets the turnover conditions in that circular. This is an extra option, not a duty. Confirm the conditions in the IFSCA circular itself before you plan on it.

How to get a silver import licence, stage by stage

Stage 1: Before you apply

• Active IEC with an updated profile on the DGFT portal.
• Digital Signature Certificate (DSC, an electronic signature on a USB token) or Aadhaar e-sign for the person signing.
• PAN (Permanent Account Number), GSTIN (Goods and Services Tax Identification Number) and proof of how the firm is set up, such as a partnership deed or company registration.
• Udyam registration or industrial licence, where relevant.
• A firm purchase plan: exact ITC(HS) code, quantity, unit, CIF value (cost, insurance and freight value) in rupees and in foreign currency, country of origin and port of import.
• Proforma invoice or purchase order from the supplier.
• Past import records for silver, if any.

Stage 2: Filing on the DGFT portal

• File the application online on dgft.gov.in using form ANF-2M, the form for import of Restricted items (HBP 2023, Para 2.47). Paper or scanned copies are not accepted.
• Enter the ITC(HS) code as 71069221 and the description exactly as in the ITC(HS) schedule: bars containing 99.9 percent or more by weight of silver.
• Enter quantity, unit and CIF value. These numbers become the limit on your Authorisation.
• Write a clear justification: why you need the silver, how you will use it and your past usage.
• Attach the proforma invoice, firm documents and any certificate a Chartered Accountant (CA) has signed on your production and consumption.
• Pay the government fee online as per Appendix 2K of the Handbook of Procedures (HBP 2023, Para 2.06). We do not quote amounts here because the fee depends on the value.
• Sign with DSC or e-sign and submit.

Stage 3: After filing

• The Exim Facilitation Committee (EFC) at DGFT headquarters considers Restricted item applications on merit (HBP 2023, Para 2.48). The EFC normally meets once a month, so plan for at least one meeting cycle.
• If DGFT finds your application incomplete, you must fix it within 90 days, or it is treated as withdrawn (HBP 2023, Para 2.05).
• Once approved, the Authorisation is issued in your firm’s name with the item, quantity, value and any conditions.
• From our filing work, a complete application usually takes 30 to 45 days from filing to licence in hand. This is our operational estimate, not a DGFT timeline.

The lapse penalty and the irreversible mistake

An Import Authorisation for Restricted items is valid for 18 months (HBP 2023, Para 2.16). DGFT headquarters can revalidate it on merit for six months from expiry (HBP 2023, Para 2.20). After that, shipments are not covered.

The one mistake you cannot undo: shipping silver bars before the Authorisation is issued. Goods imported against a restriction can be confiscated under Section 111(d) of the Customs Act, 1962. A licence issued after the goods land does not fix a past import. Always get the licence first, then book the shipment.

The fast track

We know of no notified fast track lane for Restricted item import Authorisations as on 13 October 2026. The fastest route is a complete file on the first attempt. Most delays we see come from a vague justification or a code that does not match the product.

Who this silver rule affects: six real world cases

Silver jewellery makers (payal or anklets, chains, rings). They buy 99.9 percent bars to melt and craft. Document involved: the 71069221 Authorisation. Pitfall: buying grains from a supplier because they are cheaper, without noticing grains fall under a different code and route.

Silverware, utensil and idol makers. They need steady monthly supply. Document involved: an Authorisation sized to their real consumption. Pitfall: under estimating quantity on the first application, then running out halfway through the validity period.

Jewellery exporters outside SEZ. They import bars, make jewellery and export it. Document involved: either a 71069221 Authorisation or an export scheme route such as Advance Authorisation, if eligible. Pitfall: mixing up the two licences and clearing silver against the wrong one.

SEZ jewellery units. They have the extra IIBX option under the IFSCA circular dated 15 June 2026. Document involved: SEZ Letter of Approval plus the IFSCA eligibility certificate. Pitfall: assuming IIBX is compulsory and missing the cheaper or faster route for their case, or the reverse.

Industrial users (electrical contacts, brazing alloys, electronics). They use silver as a raw material. Document involved: an Authorisation backed by CA certified consumption data. Pitfall: weak justification. EFC wants to see real industrial use, not a trading plan.

A cautionary tale (illustrative composite, not a real client). A small Agra bullion trader got a 71069221 Authorisation in June. In July, a supplier in Dubai offered a better price on 99.9 percent grains. The trader agreed on a phone call and the goods shipped. At the port, customs classified the goods under 71069110, a code that needs a Nominated Agency or IIBX route plus its own Authorisation. The bar licence did not apply. The point of no return was the moment the supplier loaded grains instead of bars. Everything after that was damage control.

How Rasp International handles a silver import licence: our 7 step method

1. Classification check. We confirm the exact code: bar, grain, powder or unwrought. One wrong digit puts you in a different rule set.
2. Exemption check. We read Policy Condition No. 7 to Chapter 71 against your facts. If an exemption applies, you may not need a licence at all.
3. Quantity planning. We size the application to your real consumption for 18 months. Too small and you reapply. Too big and the justification looks weak.
4. Justification and documents. We write the justification and build the document set. This is where most applications are won or lost.
5. Filing and query handling. We file ANF-2M and answer every DGFT query inside the 90 day window.
6. Customs clearance pack. We prepare a one page note for your customs broker with the Authorisation, Policy Circular 02/2026-27 and the exact Para numbers. Clearance arguments get settled in minutes, not days.
7. Utilisation tracking and reconciliation. We track every shipment against the licensed quantity and value, and flag revalidation before expiry. This protects you in any later audit by customs or DGFT.

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What this silver circular will not do for you

1. It will not give you a licence. Policy Circular 02/2026-27 only removes extra status tests. You still need a valid DGFT Import Authorisation for 71069221, unless an exemption under Policy Condition No. 7 covers you.

2. It will not cover other silver codes. The clarification is written for 71069221. It says nothing about 71069229 bars. Powder, grains and unwrought silver still follow Notification No. 19/2026-27.

3. It will not change your duty, tax or RBI rules. The circular is about DGFT licensing only. Customs duty, IGST (Integrated Goods and Services Tax) and RBI payment rules for the import stay as they are.

Silver import licence FAQs

Is silver import banned in India in 2026?

No. Silver import is not banned in India in 2026. Silver bars under ITC(HS) 71069221 and 71069229 are “Restricted” since DGFT Notification No. 17/2026-27 dated 16 May 2026. Restricted means you can import them, but only against a valid DGFT Import Authorisation, unless an exemption under Policy Condition No. 7 to Chapter 71 applies.

Do I need a licence to import silver bars in India?

Yes. Since 16 May 2026, silver bars under 71069221 and 71069229 need a DGFT Import Authorisation, as per Para 2.08 of Foreign Trade Policy 2023 and DGFT Notification No. 17/2026-27. The only exception is an import covered by an exemption under Policy Condition No. 7 to Chapter 71 of ITC(HS) 2022, Schedule I.

Is a DGFT import authorisation enough to clear silver bars at customs?

Yes, for 71069221. DGFT Policy Circular No. 02/2026-27 dated 9 October 2026 says the holder of a valid Import Authorisation can import directly in its own name. No Nominated Agency, IFSCA Qualified Jeweller or EOU status is needed, unless the Authorisation itself imposes that condition. All other conditions on the Authorisation still apply.

Do I need to be a nominated agency to import silver bars?

No, not for silver bars under 71069221. DGFT Policy Circular No. 02/2026-27, Para 4.3, says Nominated Agency status is not an extra eligibility condition for import against an Import Authorisation. The exception is when the Authorisation itself carries such a condition. Silver powder, grains and unwrought silver still use the Nominated Agency route.

Is it mandatory to import silver through IIBX?

Not for silver bars under 71069221. DGFT Policy Circular No. 02/2026-27, Para 4.5, says import through IIBX is not mandatory for this code unless your Authorisation specifically imposes it. The IIBX condition in Notification No. 19/2026-27 applies to IFSCA Qualified Jewellers and only to the codes listed in that notification.

What is HS code 71069221?

ITC(HS) 71069221 is the Indian trade code for silver in semi manufactured form, as bars containing 99.9 percent or more silver by weight. It sits under Chapter 71 of ITC(HS) 2022. Since DGFT Notification No. 17/2026-27 dated 16 May 2026, its import policy is Restricted, subject to Policy Condition No. 7.

Does Policy Circular 02/2026-27 apply to silver bars below 99.9 percent purity?

Not in its text. Silver bars below 99.9 percent fall under 71069229. DGFT Notification No. 17/2026-27 made 71069229 Restricted too, but Policy Circular 02/2026-27 only discusses 71069221. If you import 71069229, get the conditions confirmed in your own Authorisation before you ship.

Does the circular apply to silver grains and silver powder?

No. Silver powder (71061000), grains (71069110) and unwrought silver (71069120 and 71069190) follow DGFT Notification No. 19/2026-27 dated 2 June 2026. For these codes, imports go through Nominated Agencies or, where allowed, IFSCA Qualified Jewellers through IIBX, and every import also needs a valid Import Authorisation.

How do I apply for a silver import licence on the DGFT portal?

Log in to dgft.gov.in with your IEC and open form ANF-2M, the application for import of Restricted items (HBP 2023, Para 2.47). Enter the ITC(HS) code, quantity, CIF value and justification. Attach documents, pay the Appendix 2K fee and sign with DSC or e-sign. The Exim Facilitation Committee decides it.

How long is a silver import authorisation valid?

An Import Authorisation for Restricted items is valid for 18 months from the date of issue, unless the Authorisation says otherwise, as per Para 2.16 of the Handbook of Procedures 2023. DGFT headquarters can revalidate it on merit for six months from expiry under Para 2.20. Plan shipments well before the expiry date.

Can I import more silver than my authorisation allows?

No. DGFT Policy Circular No. 02/2026-27, Para 4.2, says the Authorisation covers the specific item, quantity and value shown in it. Any silver above that quantity or value is not covered and can be held by customs. If your needs grow, apply for a fresh or amended Authorisation before you place the larger order.

What happens if silver arrives at port without an import authorisation?

Silver bars that arrive without a valid Import Authorisation are an import against a restriction. Under Section 111(d) of the Customs Act, 1962, such goods are liable to confiscation, and penalties can follow. A licence obtained later does not cover a past import. Always get the Authorisation before the supplier ships.

Does the silver import licence change customs duty or GST on silver?

No. DGFT Policy Circular No. 02/2026-27 deals only with DGFT licensing for silver bars. It does not change customs duty, IGST or RBI payment rules. Check the current customs tariff and any Central Board of Indirect Taxes and Customs (CBIC) notification on the day you file your bill of entry.

What should I do if customs still asks for IIBX or nominated agency status?

Show the officer DGFT Policy Circular No. 02/2026-27 dated 9 October 2026, especially Paras 4.3, 4.5 and 5. Para 5 asks customs to clear 71069221 consignments in line with the clarification and the conditions of your Authorisation. Keep a printed copy with your customs broker for every shipment.

Do I need a consultant to get a silver import licence?

No, the law does not require a consultant. Any IEC holder can file ANF-2M on the DGFT portal. A consultant helps when the stakes are high: correct code selection, a strong justification, quick replies to DGFT queries and a clean customs file. Rasp International offers a free first consultation on WhatsApp.

Your silver import checklist for this week

1. Check the exact ITC(HS) code on your supplier’s proforma invoice: bar, grain, powder or unwrought.
2. Read the conditions page of your Import Authorisation and note any IIBX, Nominated Agency or EOU condition.
3. Download Policy Circular 02/2026-27 from the DGFT website and send a copy to your customs broker.
4. Compare your planned orders for the next 6 months against the quantity and value left on your Authorisation.

About Rasp International

Rasp International is an ISO 9001:2015 certified EXIM and DGFT advisory firm. The team has served 500 plus exporters and importers. We handle DGFT licensing, Restricted item import licences, export incentives, customs compliance and buyer development.

Need a silver import licence or stuck at clearance? Message us on WhatsApp for a free first consultation, or see our DGFT consultant services.

Sources

Tier 1: Government documents

• DGFT Policy Circular No. 02/2026-27 dated 9 October 2026, “Clarification on import of Silver under ITC(HS) 71069221 against Import Authorisation for import of Restricted items issued by DGFT”. File No. 01/89/180/46/AM-26/PC-2(A)/Part-I/E-47795. (Verified from the signed DGFT copy. Check the DGFT circulars page for the public link.)
• DGFT Notification No. 17/2026-27 dated 16 May 2026, amendment in import policy of silver under ITC(HS) 71069221 and 71069229. (DGFT notifications page)
• DGFT Notification No. 19/2026-27 dated 2 June 2026, amendment in import policy conditions for ITC(HS) 71061000, 71069110, 71069120 and 71069190. (DGFT notifications page)
• Foreign Trade Policy 2023, Para 2.08. (DGFT website)
• Handbook of Procedures 2023, Paras 2.05, 2.06, 2.16, 2.20, 2.47 and 2.48 and Appendix 2K. (HBP 2023 PDF on DGFT)
• IFSCA Circular IFSCA-PMTS/10/2023-Precious Metals/2026/2 dated 15 June 2026 on import of gold and silver through IIBX. (IFSCA website, Legal section)
• Customs Act, 1962, Section 111(d). (India Code, search “Customs Act, 1962”)

Tier 3: Context only

• Business Standard, report on the silver bar restriction, 16 May 2026. Used for context only, not for any rule or date.

Related reading

This article is general guidance. Rules change often. Verify every point against the current DGFT notification and your own Authorisation before you act.

Not sure if your product needs a licence? Send us your HS code on WhatsApp and we will tell you in one reply.

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