India’s Directorate General of Foreign Trade (DGFT) has officially updated the Import Policy under Chapter 71 of Schedule-I (Import Policy), ITC (HS) 2022. These amendments were made in association with the Finance Act 2025, and came into immediate effect as per DGFT Notification S.O. 2237(E).

This amendment impacts particular ITC HS codes under Chapter 71, which usually includes precious metals, stones, jewellery, and similar articles. Exporters, importers and customs duty brokers dealing with such goods should update their compliance procedures immediately.

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Overview of the Amendment

The Central Government exercise its powers under the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Trade Policy (FTP) 2023 under Chapter 71has modified the import policy and policy conditions of select items under Chapter 71. The amendment brings the existing policy framework in sync with the Finance Act 2025, dated 29th March 2025.

Key changes include:

• Deletion of outdated ITC HS codes
• Creation of new ITC HS codes under Chapter 71
• Revised import policy classifications (Free, Restricted, or Prohibited)
• Updated policy conditions for the newly introduced items

Why It Matters for Importers

If you are importing goods falling under Chapter 71 such as gold, silver, diamonds, or other precious stones you must now adhere to the new ITC HS codes and related policy terms. Failure to update your IEC code records, shipping documents or import licenses may result in delays, fines or rejection of customs duties at ports of entry.

Businesses must also ensure their DGFT license reflects the latest policy conditions to maintain compliance and avoid regulatory issues.

Table: Amended ITC HS Codes and Import Policy Conditions under Chapter 71

The table below highlights the specific amendments introduced to the ITC HS codes under Chapter 71 of Schedule-I (Import Policy), ITC (HS) 2022, in accordance with the Finance Act 2025. These consist of deleted codes, newly created entries, and revised import policy classifications. Each entry also specifics the applicable policy conditions, such as restrictions, certification requirements, or destination-specific rules.

Also Read: What is the Importer Exporter Code (IEC): Benefits and How to Apply?

Key Impacts of the Notification

The recent amendment to Chapter 71 under the Import Policy introduces regulatory and operational changes that directly impact importers of precious metals and related commodities. Understanding these effects is vital to ensure full compliance and avoiding trade disruptions.

• Updated Compliance for Chapter 71 Imports: All importers should revise their documentation so that they match the newly notified ITC HS codes and ensure that the correct policies are applied during clearance.
• Re-validation of IEC Code and DGFT License: Companies are directed to confirm that their Import Export Code (IEC) and DGFT License are aligned with the new policy framework so as to evade any legal complexity or shipping interruptions.
• Harmonisation with Financial Legislation: These modifications will ensure that India's trade policy remains align with the fiscal measures introduced under the Finance Act 2025, enhancing transparency and mitigating classification faults.
• Enhanced Trade Monitoring: By refining the item-wise classification and relevant policy terms, the DGFT aims to improve tracking and governance in high-value import segments like jewellery and precious metals.

Conclusion

The amendment in Import Policy under Chapter 71 of the ITC (HS) 2022, aligned with the Finance Act 2025, is an important update for importers dealing in precious metals and gems. With modifications in ITC HS codes and corresponding policy terms now in force, businesses should take immediate steps to update their IEC codes, DGFT licenses, and internal documentation. Staying compliant not only helps avoid operational issues but also improves your standing with customs and regulatory authorities.