The government has tightened the rules related to import of silver with immediate effect. This step has been taken just days after increasing the customs duty on precious metals. This decision is expected to impact the domestic market and trade balance.
The Directorate General of Foreign Trade issued a notification giving this information. Silver import policy has been revised from ‘free’ to ‘restricted’ category. This also includes silver plated with gold and platinum. It will now be mandatory to obtain a license from the government for the import of goods falling under the restricted category. This rule has come into effect with immediate effect.
The government had significantly increased the import duty on precious metals on May 13. Import duty was increased from six percent to 15 percent. This is the second consecutive major step that will affect imports of precious metals. These steps will have a direct impact on silver trade in the country.
change in import policy
The government has made important changes in its policy regarding import of silver. Earlier, silver came in the import free category, which meant that it could be imported easily. Now it has been put in the restricted category. This change means that importers will now have to take government permission to import silver. This process will make imports more controlled and complex.
increase in customs duty
Before banning silver, the government had increased import duty on the precious metal. On May 13, this fee was increased from 6 percent to 15 percent. This increase also applied to gold and other precious metals. With both these steps, import of precious metals into the country will become expensive. This is another important economic decision of the government.