Policy Circular No. 06/2025-26, Dated 27-10-2025
1. Background
The Directorate General of Foreign Trade (DGFT) has issued a circular clarifying the scope and applicability of import restrictions on Silver Jewellery, as imposed vide Notification No. 34/2025-26, dated 24 September 2025.
The clarification aims to ensure uniform understanding and enforcement of the import restrictions among stakeholders, including Customs field formations, 100% Export Oriented Units (EOUs), and Special Economic Zone (SEZ) units.
2. Import Restrictions under Notification No. 34/2025-26
Notification No. 34/2025-26 introduced import restrictions on specified categories of Silver Jewellery, particularly items falling under ITC (HS) Codes 71131141 and 71131149.
These restrictions were imposed as part of trade management measures to monitor the inflow of precious metal jewellery into India’s domestic market.
3. Clarification on Exemptions for EOUs and SEZ Units
The DGFT has clarified that:
-
Imports of Silver Jewellery under the above ITC (HS) codes by:
-
- 100% Export Oriented Units (EOUs), and
- Units located in Special Economic Zones (SEZs)
shall not be subject to the import restrictions imposed under Notification No. 34/2025-26.
This exemption aligns with the provisions of the Foreign Trade Policy (FTP), 2023 and the Special Economic Zones Rules, 2006.
However, DGFT has emphasised that such imports cannot be sold in the Domestic Tariff Area (DTA) and must be utilised strictly for authorised operations within the EOU/SEZ framework.
4. Exemption for Imports under Advance Authorisation and DFIA Schemes
Further, DGFT has clarified that imports made under the following export-promotion schemes are also exempt from the said import restrictions:
- Advance Authorisation Scheme, and
- Duty-Free Import Authorisation (DFIA) Scheme.
This exemption is available in accordance with Para 4.18(iv) of the Foreign Trade Policy, 2023, which allows duty-free imports of inputs required for the manufacture of export products, subject to fulfilment of export obligations.
5. Directions to Field Formations
The circular directs all Customs field formations to take note of these clarifications and ensure uniform implementation of the policy.
It instructs authorities to:
- Facilitate legitimate imports by EOUs, SEZs, and authorised exporters, and
- Prevent misuse of exemptions or diversion of imported goods into the domestic market.
6. Consequences of Non-Compliance
DGFT has explicitly stated that any deviation from the prescribed policy provisions will attract penal action under the applicable laws, rules, and regulations governing foreign trade and customs.
7. Conclusion
Through this clarification, DGFT has reinforced that while import restrictions on Silver Jewellery remain applicable to regular imports, EOUs, SEZ units, and authorised exporters under the Advance Authorisation and DFIA schemes are exempt, provided the imports are used strictly for their intended purposes.
The circular seeks to ensure clarity, compliance uniformity, and prevention of policy misuse in the trade and customs ecosystem.
