Powder
Silver in powder form, unwrought or semi-manufactured
HSN 7106 10 00 (Silver powder) is subject to the ITC (HS) Restricted-import policy administered by the Directorate General of Foreign Trade (DGFT), permitting import only through nominated agencies notified by the Reserve Bank of India (for banks) and DGFT (for other agencies). Central Board of Indirect Taxes and Customs (CBIC) Circulars 23/2018 and 27/2016 govern the procedural framework for nominated-agency imports of silver. Advance Authorisation holders and exporters receiving direct foreign-buyer supply under Para 4.45 of the Foreign Trade Policy are exempt from the nominated-agency channel.
- Nominated-agency authorisation from DGFT or RBI
- Import Licence from DGFT
- Advance Authorisation from DGFT
- 1Verify that the importing entity is a nominated agency notified by the Reserve Bank of India (if a bank) or by DGFT (if any other agency). Import by any entity that is not a notified nominated agency constitutes a breach of the ITC (HS) Restricted-import condition and renders the consignment liable to detention and confiscation.DGFT Notification 05/2015-20 dated 13-05-2020 · ITC (HS) Restricted import policy, Chapter 71
- 2If importing under an Advance Authorisation or under the scheme for direct supply by foreign buyers to exporters against export orders, document the applicable exemption under Para 4.45 of the Foreign Trade Policy and ensure the relevant authorisation or export-order documentation is filed at the bill of entry.DGFT Notification 05/2015-20 dated 13-05-2020 · Para 4.45 of the Foreign Trade Policy
- 3Follow the procedural framework for nominated-agency imports of silver set out in CBIC Circulars 23/2018-Cus dated 23-07-2018 and 27/2016-Cus dated 10-06-2016, including documentation and reporting obligations applicable to gold, silver, and platinum import transactions.CBIC Circular 23/2018-Cus dated 23-07-2018 · CBIC Circular 27/2016-Cus dated 10-06-2016
The most common error on this tariff line is assuming the Advance Authorisation exemption extends to unrestricted commercial importers. The exemption under Para 4.45 of the Foreign Trade Policy applies narrowly — to holders of a valid Advance Authorisation or to exporters receiving silver directly from a foreign buyer against a specific export order; a general commercial importer who is not a notified nominated agency has no lawful basis to import silver powder regardless of end-use intentions, and the consignment will face confiscation under the Customs Act, 1962.