{"id":8603,"date":"2026-04-07T07:29:58","date_gmt":"2026-04-07T01:59:58","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=8603"},"modified":"2026-04-07T07:29:58","modified_gmt":"2026-04-07T01:59:58","slug":"dgft-restricts-imports-of-chapter-71-items-no-relief-for-prior-contracts","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/dgft-restricts-imports-of-chapter-71-items-no-relief-for-prior-contracts","title":{"rendered":"DGFT Restricts Imports of Chapter 71 Items | No Relief for Prior Contracts"},"content":{"rendered":"

Notification No. 03\/2026-27<\/a>, Dated 02-04-2026<\/p>\n

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The Directorate General of Foreign Trade (DGFT) has amended the import policy for items under Chapter 71<\/strong> (precious metals and articles), introducing significant regulatory changes with immediate effect<\/strong>.<\/p>\n

1. Reclassification from \u201cFree\u201d to \u201cRestricted\u201d<\/span><\/h2>\n

Certain items under Chapter 71 have been reclassified from \u201cFree\u201d to \u201cRestricted\u201d<\/strong>, meaning:<\/p>\n

    \n
  • Imports now require prior authorisation or approval<\/strong><\/li>\n
  • Enhanced regulatory control over sensitive commodities<\/li>\n<\/ul>\n

    2. Introduction of Policy Condition No. 7<\/span><\/h2>\n

    The amendment introduces Policy Condition No. 7<\/strong>, along with specific conditions for select items<\/strong>, to:<\/p>\n

      \n
    • Define eligibility and compliance requirements<\/li>\n
    • Regulate import flows more effectively<\/li>\n
    • Address sector-specific concerns<\/li>\n<\/ul>\n

      3. Override of Existing Safeguards under FTP 2023<\/span><\/h2>\n

      The notification explicitly states that the changes shall apply notwithstanding Para 1.05(b) of FTP 2023<\/strong>, which ordinarily provides protection for:<\/p>\n

        \n
      • Existing contracts<\/li>\n
      • Letters of credit (LCs)<\/li>\n
      • Advance payments<\/li>\n
      • Goods already in transit<\/li>\n<\/ul>\n

        4. No Transitional Relief<\/span><\/h2>\n

        As a result:<\/p>\n

          \n
        • The revised policy applies immediately<\/strong><\/li>\n
        • No grandfathering or transitional relief<\/strong> is available<\/li>\n
        • Even prior commitments are subject to the new restrictions<\/li>\n<\/ul>\n

          5. Objective of the Amendment<\/span><\/h2>\n

          The move aims to:<\/p>\n

            \n
          • Strengthen regulatory oversight<\/strong> in the precious metals sector<\/li>\n
          • Prevent misuse or diversion<\/li>\n
          • Ensure controlled and compliant import practices<\/strong><\/li>\n<\/ul>\n

            6. Conclusion<\/span><\/h2>\n

            The amendment marks a strict and immediate shift in import policy<\/strong>, requiring stakeholders to ensure full compliance with authorisation requirements<\/strong>, irrespective of prior contractual or transactional commitments.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

            Notification No. 03\/2026-27, Dated 02-04-2026 The Directorate General of Foreign Trade (DGFT)…<\/p>\n","protected":false},"author":19,"featured_media":8609,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52,181,54],"tags":[],"class_list":["post-8603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-trade-policy","category-news-foreign-trade-policy","category-ftp-statutory-scope"],"yoast_head":"\nDGFT Restricts Imports of Chapter 71 Items | No Relief for Prior Contracts<\/title>\n<meta name=\"description\" content=\"DGFT shifts select Chapter 71 imports to the restricted category with immediate effect; no relief for existing contracts or LCs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/dgft-restricts-imports-of-chapter-71-items-no-relief-for-prior-contracts\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DGFT Restricts Imports of Chapter 71 Items | No Relief for Prior Contracts\" \/>\n<meta property=\"og:description\" content=\"DGFT shifts select Chapter 71 imports to the restricted category with immediate effect; 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