Government imposed ban on import of platinum alloy, importers to take approval from DGFT

New Delhi| The government imposed an import ban on platinum alloys of less than 99 percent purity. This step has been taken by the government to curb illegal import of this precious metal mixed with gold in large quantities. Importers of such platinum alloys are now required to obtain import authorizations from the Directorate-General for Foreign Trade (DGFT) for inbound shipments.

This decision follows a few cases where this alloy was imported blended with a considerable amount of gold to exploit the tariff difference between gold and platinum. “Platinum’s import policy has been freely revised and restricted”, DGFT said in a notification. This variation shall not apply to platinum alloys of a purity of 99 per cent or more by weight of platinum”

To ensure smooth supply of platinum for jewellery manufacturing and industrial use, the government has approved unrestricted import of platinum alloy of 99 per cent purity or more.

Economic think tank GTRI had last year demanded an immediate review of the India-UAE trade agreement. The agreement said that the agreement allows unlimited import of gold, silver, platinum and diamonds from the UAE to India with zero tariffs.

GTRI had stated that currently gold could be imported from Dubai at a 5 per cent duty, but if the alloy contained 2 per cent platinum it would be reduced to zero in three years. GTRI had also claimed that many imports did not meet the conditions of the original terms and, therefore, did not qualify for concessions.

In October 2024, India raised concerns over the surge in imports of silver products, platinum alloys and dried dates from the UAE and urged the country to ensure that regulations under the Free Trade Agreement (FTA) are not circumvented. The UAE had agreed to examine the concerns raised by India.