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India Fortifies Precious Metal Import Rules to Curb Misuse, Safeguard Industry

Guwahati, Assam – In a significant move to strengthen regulatory oversight and curb potential misuse, the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has announced new import restrictions on specific precious metal alloys and chemical compounds. These calibrated measures, outlined in Notification No. 18/2025-26 and No. 19/2025-26, both dated June 17, 2025, aim to strike a crucial balance between robust trade regulation and ensuring the uninterrupted supply of vital inputs for India's industrial and manufacturing sectors.
Unifying Policy: Gold Alloys and Precious Metals Under Scrutiny
Building on existing regulations, DGFT's Notification No. 18/2025-26 expands the scope of import restrictions to include alloys of Palladium, Rhodium, and Iridium that contain more than 1% gold by weight. This new directive ensures uniformity across the entire Customs Tariff Heading (CTH) 7110 at the 4-digit level. Previously, a similar restriction (Notification No. 60/2024-25 dated March 5, 2025) applied only to Platinum.
Why this matters: This strategic expansion is designed to create a more consistent import policy for precious metals and their alloys, preventing potential loopholes and ensuring a level playing field. However, in a pragmatic approach, the DGFT has explicitly stated that alloys containing less than 1% gold by weight will continue to be freely importable. This crucial provision safeguards the interests of vital industries like electronics, auto components, and specialized chemical sectors, ensuring they continue to access necessary raw materials without disruption.
Cracking Down on "Gold in Disguise": Colloidal Metals Now Restricted
In a parallel and equally significant move, DGFT's Notification No. 19/2025-26 introduces restrictions on the import of colloidal metals and compounds falling under CTH 2843.
This targeted measure directly addresses a growing concern: the import of gold disguised as chemical compounds.
The impact: To prevent illicit gold inflows while still supporting legitimate industrial needs, imports under CTH 2843 will now require an import authorization. This ensures that genuine industrial and manufacturing sectors, including electronics, electrical, and specialized chemical industries, can still procure these compounds for actual use, but under a regulated framework.
These recent notifications underscore the government's commitment to both facilitating legitimate trade and implementing strong regulatory oversight. By meticulously defining restricted categories and simultaneously maintaining free import for essential industrial inputs, the DGFT is fostering a secure and predictable trade environment.
For detailed information and to access the full notifications, interested parties are encouraged to visit the official DGFT website: https://dgft.gov.in
These updates reflect India's proactive stance in adapting its foreign trade policy to evolving market dynamics and safeguarding its economic interests. The new regulations are poised to bring greater transparency and accountability to the import of precious metals and their compounds, benefiting the nation's economy and industries alike.
The impact: To prevent illicit gold inflows while still supporting legitimate industrial needs, imports under CTH 2843 will now require an import authorization. This ensures that genuine industrial and manufacturing sectors, including electronics, electrical, and specialized chemical industries, can still procure these compounds for actual use, but under a regulated framework.
Balancing Act: Trade Facilitation Meets Regulatory Vigilance
These recent notifications underscore the government's commitment to both facilitating legitimate trade and implementing strong regulatory oversight. By meticulously defining restricted categories and simultaneously maintaining free import for essential industrial inputs, the DGFT is fostering a secure and predictable trade environment.
For detailed information and to access the full notifications, interested parties are encouraged to visit the official DGFT website: https://dgft.gov.in
These updates reflect India's proactive stance in adapting its foreign trade policy to evolving market dynamics and safeguarding its economic interests. The new regulations are poised to bring greater transparency and accountability to the import of precious metals and their compounds, benefiting the nation's economy and industries alike.
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