New Delhi: The Directorate General of Foreign Trade (DGFT), under India’s Ministry of Commerce and Industry, has announced stringent new import restrictions aimed at curbing the misuse of precious metal alloys and compounds, particularly those involving gold.
The measures, detailed in Notification No. 18/2025-26 and Notification No. 19/2025-26, target alloys of palladium, rhodium, and iridium containing more than 1% gold by weight and colloidal metals and compounds under Customs Tariff Heading (CTH) 2843. These steps, effective immediately, reflect India’s push to regulate gold inflows disguised as other materials while ensuring supply chains for critical industries remain intact.
Notification No. 18/2025-26 expands on existing restrictions for platinum imports, introduced via Notification No. 60/2024-25 on March 5, 2025, to encompass the entire CTH 7110 at the 4-digit level. This move standardises import policies for precious metals and their alloys, closing loopholes exploited by importers. For instance, some traders reportedly labelled products with up to 99% gold as platinum alloys to benefit from lower duties under the India-UAE Free Trade Agreement, a tactic now thwarted by these tightened rules. However, to balance regulatory oversight with trade needs, alloys containing less than 1% gold are permitted for free import, ensuring uninterrupted access to inputs for industries like electronics, auto components, and specialised chemicals.
Simultaneously, Notification No. 19/2025-26 shifts colloidal metals and compounds under CTH 2843—including gold, silver, and platinum suspensions—from “free” to “restricted” status. This change, designed to curb gold imports masquerading as chemical compounds, requires importers to secure a valid import authorisation from the DGFT. The policy allows controlled imports for industrial and manufacturing sectors, such as electronics, electrical, and chemical industries, to meet legitimate domestic needs without disruption. Industry experts note that some importers had used this route, particularly from countries like Thailand, to bypass gold import regulations.
These measures align with broader efforts to harmonise customs duties with import policies, as seen in the Union Budget 2025 and the Finance Act 2025. The Global Trade Research Initiative (GTRI) highlights that the updated regulations address previous misclassifications, such as labelling gold-heavy products as platinum alloys to exploit lower tariffs under free trade agreements. New Harmonised System (HS) codes, including one for platinum with 99% or higher purity, enhance tracking and prevent duty evasion. The restrictions are expected to significantly impact industries like electronics, photography, pharmaceuticals, and chemicals, where colloidal precious metals and compounds are critical inputs, now requiring DGFT authorisation.
The government’s calibrated approach seeks to balance economic security with industrial needs. By channelling imports through formal mechanisms like the India International Bullion Exchange (IIBX) and RBI-nominated agencies, India aims to enhance transparency and deter unauthorised inflows. These changes, detailed on the DGFT website (https://dgft.gov.in), underscore a strategic effort to regulate sensitive materials while fostering a formalised, traceable import system for precious metals.
– global bihari bureau
