Import Policy Changes for Chapter 71 Notified by DGFT
The Import Policy for Chapter 71 under ITC(HS) 2022 has been officially updated by the Directorate General of Foreign Trade (DGFT). These changes, notified under the Finance Act, 2025, aim to streamline imports of precious metals and stones with immediate effect.
Chapter 71 includes natural or cultured pearls, precious or semi-precious stones, precious metals (like gold, silver, platinum), and articles thereof. These items are critical to India’s export-import ecosystem, especially in the gems and jewellery sector, which accounts for nearly 7–8% of India’s total merchandise exports.
Key Highlights of DGFT’s Import Policy Notification
- Effective Date: The revised policy is effective immediately from the date of the notification.
- Coverage: Applies to newly created ITC(HS) codes under Chapter 71 of Schedule I (Import Policy).
- Authority: Issued under powers granted by the Foreign Trade (Development and Regulation) Act, 1992.
- Compliance Impact: Importers must now follow revised procedures for certain ITC(HS) codes as per the new policy.
What is ITC(HS) Chapter 71?
| Item Category | Examples |
|---|---|
| Natural or Cultured Pearls | Loose pearls, unstrung |
| Precious or Semi-Precious Stones | Diamonds, emeralds, rubies |
| Precious Metals | Gold, silver, platinum |
| Articles of Jewellery | Rings, chains, ornaments |
Note: All such imports must now align with the updated Import Policy classification and conditions as notified by DGFT.
Legal Reference
- Notification Source: DGFT Public Notice (available at dgft.gov.in)
- Linked Legislation: Finance Act, 2025 + Foreign Trade Policy (FTP) 2023
- Customs Reference: Section 11 of the Customs Act, 1962 (for restricted/prohibited items)
Expert Tip for Importers
Cross-check the newly created ITC(HS) codes in Chapter 71 with your import items to avoid non-compliance. Mistakes in HS classification can lead to clearance delays, penalties, or even confiscation.
Need help classifying your import items correctly? Efiletax offers expert import-export compliance services with customs mapping and DGFT consultation.
How to Comply with the New Policy
- Identify the updated ITC(HS) codes relevant to your import.
- Verify if the import policy status has changed (Free / Restricted / Prohibited).
- Update your Bill of Entry and Customs documents accordingly.
- Check Licensing Requirements if any code is now under ‘Restricted’ status.
- Consult DGFT Portal or Efiletax experts before proceeding with new imports.
Importers Must Also Watch For:
- Bank remittance delays due to HS code mismatch
- DGFT IEC linkage updates if importing in new categories
- Customs valuation changes in precious items post-policy change
FAQ on Chapter 71 Import Policy
Q1. Is the DGFT update applicable to exporters?
A: No, this notification is specific to import policies only. Exporters should refer to Schedule II of ITC(HS).
Q2. What if my goods fall under more than one HS code?
A: Classification should be based on predominant material/value. When in doubt, seek an Advance Ruling from CBIC.
Q3. Can imports already in transit be affected?
A: If Bill of Lading precedes the notification, older policy may apply. However, customs discretion can still delay clearance.
Summary
DGFT updates Import Policy under Chapter 71 (pearls, stones, jewellery) with immediate effect as per Finance Act, 2025. Importers must verify new ITC(HS) codes and comply with updated licensing and classification norms.
Final Note
Chapter 71 importers — especially in the gems, jewellery, and bullion sectors — must act swiftly to realign their documentation and logistics under the revised import policy. Non-compliance may lead to seizures, penalties, or license suspension.