Notification No. 08/2025-26, Dated 19-05-2025
1. Regulatory Snapshot
- Notification No. 08/2025-26-DGFT, dated 19 May 2025 amends the Import Policy & Policy Conditions for selected ITC (HS) Chapter 71 codes (precious metals) to mirror the tariff re-structure in the Finance Act 2025.
- The amendment deletes legacy codes and introduces newly carved HS codes for silver, gold and platinum in three physical states — unwrought, semi-manufactured, powder.
- Changes are effective immediately upon Gazette publication (19 May 2025).
2. Re-cast Policy Conditions (Highlights)
- Nominated Agencies – Banks, MMTC-PAMP, etc. authorised by RBI/DGFT remain primary conduits for restricted bullion.
- India International Bullion Exchange (IIBX) – Qualified Jewellers notified by IFSCA can import restricted items through IIBX’s GIFT City vaults.
- UAE TRQ Channel – Holders of tariff-rate-quotas (under CEPA Art. 4.5) may import at concessional duty, subject to quarterly reporting.
- Gold-Dore Refineries – Licensed refineries can import dore (HS 7108 12 00) for further refining, within annual quantitative ceilings.
- RBI Oversight – All “Free” imports must comply with FEMA payment regulations; AD banks must report bullion remittances in FETERS returns.
3. Why the Realignment?
| Driver | Explanation |
|---|---|
| Tariff restructure in Budget 2025 | Finance Act 2025 recast duty slabs & HS codes for precious metals; DGFT must synchronise the import schedule. |
| Regulatory consistency | Uniform Free/Restricted labelling removes legacy overlaps and plugs routing gaps exploited for duty arbitrage. |
| Facilitating IIBX ecosystem | Dedicated codes simplify trade-data capture for bullion imported via GIFT City exchange. |
4. Compliance Checklist for Importers & Dealers
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Update ERP/Customs Broker Tariff Tables – switch to new eight-digit HS codes before filing next Bill of Entry.
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Verify Eligibility – ensure your entity appears on the nominated-agency or qualified-jeweller lists before contracting restricted shipments.
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Re-work LC/Advance Payment Clauses – cite correct code & policy condition on trade docs to avoid RMS holds.
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Track TRQ Balances – UAE CEPA quota users must upload utilisation statements on DGFT portal quarterly.
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Refinery License Holders – align dore-import volumes with annual cap endorsed by DGFT; excess attracts penal duty + fine.
5. Immediate Market Impact
- Streamlined Clearances – “Free” classification for high-purity unwrought silver & platinum reduces dwell times.
- Duty-correct routing – Stricter “Restricted” tag on gold powder curbs mis-declaration under semi-manufactured headings.
- Boost to IIBX volumes – Clear codification encourages jewellers to pivot to transparent GIFT City imports.
