DGFT Issues Clarification on Applicability of Import Restrictions on Silver Jewellery [Read Circular]
DGFT clarifies that import restrictions on silver jewellery will not apply to SEZs, EOUs, or imports made under Advance Authorisation and DFIA schemes.
![DGFT Issues Clarification on Applicability of Import Restrictions on Silver Jewellery [Read Circular]](https://images.taxscan.in/h-upload/2025/10/28/2100425-silver-ornaments-silver-jewellery-dgft-taxscan.webp "DGFT Issues Clarification on Applicability of Import Restrictions on Silver Jewellery [Read Circular]")
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry has issued Policy Circular No. 06/2025-26 dated 27 October 2025 to clarify how the import restrictions on silver jewellery will apply.
These restrictions were earlier introduced through Notification No. 34/2025-26 dated 24 September 2025, which had imposed controls on imports of silver jewellery under specific tariff codes.
The new circular was released to address confusion among exporters and importers, especially those operating within Special Economic Zones (SEZs), Export Oriented Units (EOUs), and under Advance Authorisation schemes.
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According to the DGFT, the import restrictions do not apply to silver jewellery imported by 100% Export Oriented Units (EOUs) or units located in Special Economic Zones (SEZs). These entities are allowed to continue importing silver jewellery as per existing provisions under the Foreign Trade Policy (FTP) 2023 and the SEZ Rules, 2006.
However, DGFT made it clear that such imported items cannot be sold in the Domestic Tariff Area (DTA). The circular further clarifies that imports of silver jewellery made under Advance Authorisation and Duty-Free Import Authorisation (DFIA) schemes are also exempt from these restrictions.
These exemptions are provided under Para 4.18(iv) of the Foreign Trade Policy 2023, which allows duty-free imports of inputs required for manufacturing goods meant for export.
DGFT explained that this clarification aims to ensure smooth operations for exporters and prevent disruption to India’s jewellery export sector. The circular warns that any misuse of these relaxations, such as selling imported goods in the domestic market, will attract penal action under the relevant laws.
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The clarification brings relief to SEZ-based exporters and manufacturers who depend on imported silver jewellery components for production.
The DGFT instructed all customs and field offices to implement these directions with immediate effect. The circular was issued with the approval of the Director General of Foreign Trade and signed by Satya Raja Sekhar G, Joint Director General of Foreign Trade.
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