Gold and Silver Import Rules Through IIBX in GIFT City Explained Clearly

India has created a regulated and transparent system for importing gold and silver through the International Financial Services Centre located at GIFT City. This system operates under the supervision of the International Financial Services Centres Authority and the India International Bullion Exchange.

Understanding these rules is important for jewellery manufacturers, exporters, SEZ units, advance authorisation holders, investors, and finance professionals. This article explains the eligibility, process, compliance, and operational rules in a clear and simple way.

What Is IIBX and Why Does It Matter for Bullion Imports

The India International Bullion Exchange operates in GIFT City IFSC. It allows eligible entities to import gold and silver in a regulated manner. The exchange uses Bullion Depository Receipts, which represent physical gold or silver stored in approved vaults.

This system improves transparency, reduces dependency on informal channels, and alignsthe  Indian bullion trade with global standards.

Who Can Import Gold or Silver Through IIBX

Entities importing through IIBX fall under three main categories.

Qualified Jewellers Notified by IFSCA

Qualified Jewellers are entities approved by the International Financial Services Centres Authority. Only after notification can these entities purchase bullion on IIBX.

To qualify, the entity must be actively involved in the jewellery or precious metal business under specific ITC HS codes related to gold, silver, and jewellery.

India UAE CEPA TRQ Holders

Entities holding a valid Tariff Rate Quota licence issued under the India-UAE Comprehensive Economic Partnership Agreement can import UAE Good Delivery gold through IIBX.

These entities must be notified by IFSCA as valid TRQ holders to access the exchange.

Advance Authorisation Holders

Entities holding a valid Advance Authorisation issued by DGFT can also import gold or silver through IIBX. This is permitted only for export-related purposes and only for the products mentioned in the authorisation.

Eligibility Conditions for Becoming a Qualified Jeweller

To be notified as a Qualified Jeweller, an entity must meet several conditions.

Business Activity Requirement

The entity must deal in goods falling under ITC HS Chapter 71. This includes gold, silver, jewellery, and related articles.

GST Compliance

All GST returns must be filed up to the previous month or quarter before applying.

Turnover Requirement

The entity must meet one of the following turnover criteria certified by a chartered accountant, cost accountant, or company secretary:

• At least 60%of turnover in each of the last three financial years and the current year must come from Chapter 71 goods

• Or at least 90% turnover in the previous financial year and the current year must come from Chapter 71 goods

For SEZ units exporting jewellery, the requirement is relaxed to 35% turnover from jewellery exports.

Net Worth Requirement

The minimum net worth required is INR 15 crore based on audited or reviewed financial statements.

For SEZ units exporting jewellery, the minimum net worth is INR 5 crore, along with a minimum annual export of INR 5 crore.

Continuous Compliance After Qualification

Once notified, a Qualified Jeweller must continue meeting all eligibility conditions.

Net worth is reviewed every six months by IIBX. If eligibility conditions are not met, trading access is suspended until compliance is restored.

SEZ units must maintain the required export turnover every financial year.

How the Qualified Jeweller Application Process Works

• The application process is structured and transparent.

• First, the entity submits an application to IIBX along with supporting documents and fees.

• IIBX reviews the application and may request additional information.

• Once verified, IIBX forwards the application to IFSCA with recommendations.

• IFSCA issues the notification and publishes the updated list of Qualified Jewellers on its website.

Only fit and proper entities are approved. This includes checks on integrity, financial history, regulatory compliance, and criminal records of promoters and directors.

Ways to Participate in IIBX

Qualified Jewellers can participate in IIBX in two ways.

Through a Bullion Trading Member

Most entities trade through registered Bullion Trading Members who execute trades on their behalf.

As a Special Category Client

Eligible companies and LLPs can directly access the trading system but must associate with a Bullion Clearing Member. These clients can trade only for their own account and cannot onboard other clients.

Rules for Importing Silver Bars

Silver bars under ITC HS code 71069221 can be imported through IIBX by any entity holding a valid Importer Exporter Code.

IFSCA notification as a Qualified Jeweller is not required for this category. However, RBI import regulations still apply.

Import of UAE Gold Under India UAE CEPA

Entities holding valid TRQ licences can import UAE Good Delivery gold through IIBX.

Once notified by IFSCA, these entities can buy UAE gold through Bullion Trading Members within their approved quota.

The notification remains valid as long as the TRQ licence is renewed every year.

Qualified Jewellers holding TRQ licences do not need a separate notification.

Advance Remittance Rules for Bullion Imports

Advance payment for importing gold or silver must follow the RBI guidelines.

IIBX issues an authenticated document with indicative price details. This document allows authorised dealer banks to process foreign currency remittance.

Funds must be remitted only for purchasing Bullion Depository Receipts and only through approved channels.

Any unutilised amount must be refunded within eleven calendar days.

Purchase and Settlement of Bullion Depository Receipts

Entities can only place buy orders on IIBX. Selling is not allowed.

Bullion Clearing Members issue daily statements showing remittance usage and balances.

BDRs must be extinguished and customs clearance completed within the prescribed timeline.

For SEZ units, bullion is delivered directly to the SEZ premises after customs clearance.

Anti Money Laundering and Compliance Framework

All participants must comply with IFSC AML, CFT, and KYC guidelines.

Additional compliance is required under Indian anti-money laundering laws applicable to dealers in precious metals.

Accounts with IIBX, depositories, trading members, and clearing members must remain compliant at all times.

Market Surveillance and Reporting

IIBX is responsible for monitoring all bullion market activity in IFSC.

Live surveillance systems track transactions to maintain market integrity.

Monthly reports are submitted to IFSCA covering quantity, value, and import details of bullion traded.

Why This Framework Is Important for Businesses

This regulated framework brings clarity, reduces risk, and supports international best practices.

Businesses benefit from transparent pricing, proper documentation, RBI-backed remittance rules, and a globally aligned bullion market.

For investors, researchers, and finance students, this structure provides a clear example of how India is building a strong financial ecosystem in GIFT City.

Role of Structured Financial Guidance in GIFT City

Operating within IFSC requires an understanding of regulations, compliance, documentation, and banking coordination.

Structured advisory support helps businesses meet eligibility criteria, maintain compliance, and operate smoothly within the IIBX ecosystem.

GIFT City continues to develop as a global financial hub, and bullion trade is a key pillar of this growth.

Final Note

The bullion import framework through IIBX is detailed but business-friendly when understood correctly. Entities that follow eligibility rules, maintain compliance, and use the right financial processes can benefit from a secure and transparent import system within GIFT City IFSC.

This clarity strengthens India’s position in the global precious metal trade while offering businesses a compliant and efficient import route.

and customer trust.