New Regulation Closes Loophole on Platinum-Gold Imports

The Indian government has implemented import restrictions on platinum articles mixed with gold to curb illicit trade. This change aims to prevent exploitation of tariff differentials between gold and platinum. Re-imports for exhibitions or repairs are still allowed under specific conditions.

In a strategic move to control illicit trade, the Indian government imposed restrictions on the import of specific platinum articles mixed with significant amounts of gold. Previously unrestricted, these imports now face tighter controls, according to a notification by the Directorate General of Foreign Trade.

Industry experts noted that a loophole allowed gold to enter as platinum alloy, a situation rectified last year. Today, imports of precious metal articles have surged, nearly doubling to USD 9.75 million in FY25 from the previous fiscal year.

The government, however, has allowed re-imports of Indian-origin goods sent for exhibitions or repair. This regulation follows last year's restrictions on platinum alloy with less than 99 per cent purity to further tighten trade rules between gold and platinum.

(With inputs from agencies.)