Business and finance background. Rows of golden and silver bars
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As part of an overall effort to bring in greater consistency between import tariffs and customs regulations, the government on Monday (May 19, 2025) allowed the import of certain types of unwrought, semi-manufactured and powdered gold under particular conditions. On the other hand, it has imposed similar conditions on the import of some silver products that were earlier freely importable. 

According to the new restrictions, imports of these items will only be allowed through agencies nominated by either the Reserve Bank of India or the government, qualified jewellers, and particular traders authorised under the India-UAE free trade agreement.

These new rules were notified by the Directorate General of Foreign Trade (DGFT) on Monday (May 19, 2025) as a modification of its import policy chapter pertaining to precious metals, stones, and pearls. 

When it comes to gold, several items that earlier faced a blanket restriction have now been allowed for imports under particular conditions. 

For example, the import of unwrought, semi-manufactured, or powdered gold containing 99.5 or more by weight of gold used to be restricted. Under the new rules, these items can be imported by agencies nominated by the RBI, in the case of banks, or nominated by the DGFT, or by qualified jewellers as notified by the International Financial Services Centres Authority and only through the India International Bullion Exchange, or valid tariff rate quota (TRQ) holders under the India-UAE free trade agreement. 

On the other hand, the import of unwrought, semi-manufactured, or powdered gold in bar form used to be freely importable. Now, the notification says the import would be “subject to RBI regulation”.

According to a note by the Global Trade Research Initiative (GTRI), these changes “ensure consistency between customs duties and import regulations” and bring the rules into alignment with the changes made in Budget 2025 to enhance the transparency in the import of precious metals. 

“Separate codes for gold and silver ore help customs track semi-processed forms of these metals, which are sometimes used to bypass higher duties on refined gold and silver,” GTRI added.