Silver Import Rules Tightened, Government took big decision 

Silver Import Rules: The government has imposed stricter regulations on silver imports, as per an order released on Saturday. This order indicates that officials are intensifying their efforts to manage the influx of gold and silver, aiming to alleviate pressure on the nation’s external sector. This recent action is part of a broader set of measures introduced by the government in the past few days, which are designed to enhance the monitoring and regulation of precious metal imports.

As per reports, the Indian government has revised its policy regarding the import of silver bars, changing their classification from ‘free’ to ‘restricted’ effective immediately.

Gold import limit set at 100 kg

On Friday, the government established a cap on gold imports under the ‘Advance Authorisation’ (AA) scheme, limiting them to 100 kg. Additionally, it has enforced stricter compliance requirements for importers in the gems and jewellery sector through a notification issued by the Directorate General of Foreign Trade (DGFT).

“Advance Authorisation (AA) for gold imports will only be granted up to a maximum limit of 100 kg,” the notification stated.

The DGFT has also tightened regulations for first-time applicants.

It mentions, “For individuals applying for Advance Authorization for the first time, a mandatory physical inspection of the applicant’s manufacturing facility will be carried out by the relevant regional authority. This inspection aims to confirm the existence, capacity, and operational status of the manufacturing unit.”

Furthermore, the government has tied future gold import approvals to export performance criteria.

The notification specifies, “Any subsequent Advance Authorization for gold imports will only be considered for issuance if at least 50% of the export obligation from the previous Advance Authorization for gold has been fulfilled.”

 Performance report to be submitted every fortnight

To further strengthen monitoring, importers under the Advance Authorization Scheme will now be required to submit performance reports every fortnight (once every two weeks). This report will be required to be certified by an independent chartered accountant (CA). It will include detailed details of import and export activities.

The central government recently increased the import duty on gold and silver from 6 percent to 15 percent. Additionally, a 3 percent Integrated Goods and Services Tax (IGST) was also imposed on gold and silver imports.

These measures are aimed at curbing non-essential imports and reducing pressure on foreign exchange reserves. This comes at a time when rising crude oil prices and global geopolitical uncertainties are impacting the country’s external economic balance.