India is one of the largest consumers of silver globally, driven by demand from jewellery manufacturers, industrial users, and investors. If you are a business entity or trader looking to import silver in India, understanding the regulatory framework, customs duties, and compliance requirements is essential before initiating any shipment. The process involves multiple government agencies, including the Directorate General of Foreign Trade (DGFT), the Central Board of Indirect Taxes and Customs (CBIC), and the Reserve Bank of India (RBI).
This guide walks you through every aspect of the silver import procedure in India, from obtaining the necessary registrations to calculating the applicable customs duty. Whether you are importing silver bullion, silver coins, or semi-manufactured silver, the steps outlined here will help you stay compliant and avoid costly penalties.
Who Can Import Silver in India
Not everyone is permitted to import silver in India commercially. The government restricts bullion imports to specific categories of entities to maintain control over precious metal inflows and safeguard the country's trade balance. Nominated agencies such as banks and government-approved entities, including the Metals and Minerals Trading Corporation (MMTC), State Trading Corporation (STC), and certain scheduled commercial banks authorised by the RBI, are the primary channels for commercial silver imports.
Businesses engaged in jewellery manufacturing or export can also import silver, provided they hold a valid IEC registration and comply with the Foreign Trade Policy. Export Oriented Units (EOUs) and Special Economic Zone (SEZ) units can import silver duty-free for manufacturing goods meant for export, though they cannot sell these goods in the Domestic Tariff Area (DTA) without paying applicable duties.
Individuals, specifically Non-Resident Indians (NRIs) and passengers of Indian origin returning after a stay of at least six months abroad, can bring silver as part of their personal baggage. They are allowed to carry up to 10 kg of silver by paying the applicable customs duty in convertible foreign currency at the port of arrival.
Registrations and Licences Required to Import Silver
Before you begin the silver import procedure, you need to obtain a set of mandatory registrations. The first and most critical is the Import Export Code (IEC), a 10-digit identification number issued by the DGFT. Without an IEC, no business can legally clear goods through Indian customs or make payments to overseas suppliers. The application is submitted online through the DGFT portal, and the code typically gets issued within 3 to 7 working days.
Along with IEC, you will need an active GST registration since Integrated GST (IGST) applies on all imports into India. An AD Code registration with your authorised dealer bank is also necessary, as it links your bank account to the customs system for processing foreign exchange transactions. Additionally, you must register on the ICEGATE portal, the electronic gateway of Indian Customs, to file Bills of Entry and manage your import documentation digitally.
If you are operating as a company, ensure your business entity is properly incorporated. A private limited company registration or a public company registration provides the legal structure required to carry out import operations with credibility and compliance.
Silver Import Duty Structure in India
The customs duty on silver has undergone significant changes in recent years. Following the Union Budget announcement in July 2024, the government reduced the total import duty on silver bullion from 15% to 6%. This move was aimed at curbing smuggling, lowering input costs for domestic manufacturers, and bringing legal imports back into the mainstream. The 6% duty comprises Basic Customs Duty (BCD) along with the Agriculture Infrastructure and Development Cess (AIDC).
For finished silver jewellery and parts classified under HSN 7113, the import duty stands at 20%, reduced from the earlier rate of 25%. This differential between raw material and finished goods duty is intentional, providing protection to local jewellery manufacturers while keeping raw material costs competitive.
Here is a summary of the current silver import duty India rates:
In addition to customs duty, IGST is levied on the assessable value plus customs duty at the applicable rate. The IGST paid on imports can be claimed as Input Tax Credit (ITC) by businesses registered under GST, effectively reducing the overall tax burden.
Step-by-Step Silver Import Procedure
Importing silver into India involves a structured sequence of steps. Each stage requires attention to documentation and regulatory compliance to ensure smooth customs clearance.
Step 1: Obtain necessary registrations. Secure your IEC from DGFT, register on ICEGATE, obtain your AD Code from the bank, and ensure your GST registration is active.
Step 2: Identify a reliable overseas supplier. Source silver from accredited refineries or bullion dealers. Verify the supplier's credentials and ensure the silver meets the purity standards specified in your purchase order.
Step 3: Finalize the purchase contract. Agree on Incoterms, payment terms, and delivery schedule. Common Incoterms for bullion imports include CIF (Cost, Insurance, and Freight) and FOB (Free on Board).
Step 4: Arrange for shipping and insurance. Silver is a high-value commodity, so transit insurance is critical. Work with your freight forwarder to arrange secure shipping through an authorised port.
Step 5: File the Bill of Entry on ICEGATE. Once the shipment arrives at the Indian port, file the Bill of Entry electronically through the ICEGATE portal. Attach all supporting documents, including the commercial invoice, packing list, bill of lading, insurance certificate, and certificate of origin.
Step 6: Pay customs duty and IGST. The customs authority assesses the duty based on the tariff value notified by CBIC. Pay the applicable BCD, AIDC, and IGST through the electronic payment system linked to your ICEGATE account.
Step 7: Clear the consignment and take delivery. After duty payment and customs examination, the goods are released. Collect your silver from the port or have your logistics partner deliver it to your warehouse.
Restrictions on Silver Jewellery Imports
In September 2025, the DGFT imposed restrictions on the import of plain (unstudded) silver jewellery and unmounted silver articles. These restrictions remain in effect until March 31, 2026. The decision came after a sharp surge in imports of minimally processed silver being declared as finished jewellery under Free Trade Agreements, particularly from ASEAN nations like Thailand. This practice allowed importers to bypass customs duties entirely, resulting in significant revenue losses for the government.
Under the current policy, importers must obtain a government-issued licence to bring in plain silver jewellery. However, units operating under the Advance Authorisation scheme, Duty-Free Import Authorisation (DFIA), 100% Export Oriented Units, and SEZ entities are exempt from these restrictions, provided the imported goods are used exclusively for export production.
Passenger Rules for Silver Import
If you are an NRI or a person of Indian origin returning to India after staying abroad for at least six months, you can import silver in any form up to 10 kg as part of your personal baggage. The duty payable is 6% of the tariff value, and it must be paid in convertible foreign currency at the customs counter. Short visits totalling up to 30 days during the six-month period are ignored for eligibility purposes, provided you did not avail of the exemption during those visits.
Passengers who do not meet the eligibility criteria face a higher duty rate of 36%. There is no duty-free allowance for silver imports through personal baggage. You can either carry the silver at the time of arrival or import it within fifteen days through the customs bonded warehouse facility operated by the State Bank of India or MMTC.
HSN Codes for Silver Import in India
Correct classification of your silver consignment under the Harmonised System of Nomenclature (HSN) is vital for determining the right duty rate and avoiding disputes with customs authorities. The key HSN codes applicable to silver imports are as follows:
Misclassification can lead to duty shortfalls, penalties, and delayed clearance. Always verify the HSN code with your customs broker before filing the Bill of Entry.
Key Documents Required for Silver Import
Preparing the correct set of documents well in advance can significantly speed up your customs clearance process. The essential documents for importing silver into India include your IEC certificate, commercial invoice from the overseas supplier, packing list with weight and quantity details, bill of lading or airway bill, insurance certificate covering the shipment value, certificate of origin (particularly important for availing preferential duty under FTAs), assay certificate confirming silver purity, AD Code registration letter from your bank, and a copy of your GST registration certificate.
For consignments where preferential duty rates under a Free Trade Agreement are claimed, the certificate of origin must be issued by an authorised body in the exporting country and must meet the Rules of Origin criteria specified in the agreement.
Compliance Obligations and Penalties
Importing precious metals like silver carries heightened scrutiny from customs authorities. Any attempt to misdeclare the quantity, value, or classification of silver can result in confiscation of goods, financial penalties, and even criminal prosecution under the Customs Act, 1962. The government has been particularly vigilant in recent months against duty evasion through misuse of Free Trade Agreements.
To stay compliant, maintain accurate records of every transaction, ensure your IEC and GST returns are filed on time, and work with experienced customs brokers who understand the nuances of bullion import India regulations. If you plan to import silver regularly, consider engaging a professional firm to handle your compliance, documentation, and duty calculations.
