India has introduced new restrictions on imports of precious metal alloys containing gold and liquid forms of the metal, aiming to close loopholes that smugglers have exploited. The Directorate General of Foreign Trade now limits imports of alloys with more than 1% gold and colloidal precious metals, targeting importers disguising gold shipments to evade duties and regulations. These measures reflect the government’s intensified crackdown on gold smuggling over the past month.
This move builds on earlier restrictions imposed in May, which targeted gold and silver imports from the United Arab Emirates. Those measures sought to prevent misuse of lower duties available under the India-UAE trade agreement, after importers labeled shipments of nearly pure gold as platinum alloy to benefit from reduced tariffs. The government limited imports under this agreement to nominated agencies, qualified jewelers, and valid quota holders.
Despite these restrictions, India continues to allow imports of alloys containing less than 1% gold for industrial and manufacturing sectors, including electronics and automotive components. This ensures that critical industries can access necessary materials without disruption. The new rules also expand existing restrictions on platinum imports to cover the entire precious metals classification, maintaining consistency in import policy.
Overall, the government’s calibrated approach balances trade facilitation with regulatory oversight. By tightening controls on precious metal imports, India aims to curb illegal smuggling while supporting legitimate industry needs, helping to safeguard the economy and maintain fair trade practices.
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