Notification No. 03/2026-27, Dated 02-04-2026
The Directorate General of Foreign Trade (DGFT) has amended the import policy for items under Chapter 71 (precious metals and articles), introducing significant regulatory changes with immediate effect.
1. Reclassification from “Free” to “Restricted”
Certain items under Chapter 71 have been reclassified from “Free” to “Restricted”, meaning:
- Imports now require prior authorisation or approval
- Enhanced regulatory control over sensitive commodities
2. Introduction of Policy Condition No. 7
The amendment introduces Policy Condition No. 7, along with specific conditions for select items, to:
- Define eligibility and compliance requirements
- Regulate import flows more effectively
- Address sector-specific concerns
3. Override of Existing Safeguards under FTP 2023
The notification explicitly states that the changes shall apply notwithstanding Para 1.05(b) of FTP 2023, which ordinarily provides protection for:
- Existing contracts
- Letters of credit (LCs)
- Advance payments
- Goods already in transit
4. No Transitional Relief
As a result:
- The revised policy applies immediately
- No grandfathering or transitional relief is available
- Even prior commitments are subject to the new restrictions
5. Objective of the Amendment
The move aims to:
- Strengthen regulatory oversight in the precious metals sector
- Prevent misuse or diversion
- Ensure controlled and compliant import practices
6. Conclusion
The amendment marks a strict and immediate shift in import policy, requiring stakeholders to ensure full compliance with authorisation requirements, irrespective of prior contractual or transactional commitments.
