The Indian government has introduced new import restrictions on platinum alloys containing less than 99% platinum by weight. The policy aims to regulate imports and address tariff differences between gold and platinum.
Under the revised regulations, importers of platinum alloys below the 99% purity threshold will now be required to obtain prior authorization from the Directorate General of Foreign Trade (DGFT). However, imports of platinum alloys with a purity level of 99% or higher will remain unrestricted to support industrial and jewelry manufacturing sectors.
The decision follows concerns that certain platinum alloys mixed with gold were being imported to benefit from lower tariff rates on platinum compared to gold.
In an official notification, the DGFT stated: “The import policy of platinum has been revised from free to restricted, except for platinum alloys with 99% or more purity by weight of platinum.”
Economic research organizations have previously raised concerns regarding platinum imports. The Global Trade Research Initiative (GTRI) had earlier recommended a review of India’s trade agreement with the United Arab Emirates (UAE), citing the duty-free import of precious metals, including gold, silver, platinum, and diamonds, under the existing free trade agreement (FTA).
According to GTRI, gold imports from Dubai are currently subject to a 5% duty, which is set to be phased out within three years if the imported alloy contains at least 2% platinum. The think tank also noted concerns that some imports may not meet Rules of Origin requirements and therefore might not qualify for duty exemptions.
In October 2024, India raised issues regarding the increasing imports of silver products, platinum alloys, and dry dates from the UAE, urging compliance with trade regulations under the FTA. The UAE agreed to examine these concerns.
The new import restrictions are expected to impact traders and manufacturers dealing with lower-purity platinum alloys while maintaining an uninterrupted supply of high-purity platinum for industrial and jewelry-related applications.
Explore comprehensive supply chain news at The Supply Chain Report. Those interested in international trade can visit ADAMftd.com for free tools.
#IndiaTrade #PlatinumImports #ImportRestrictions #SupplyChainNews #GlobalTrade #MetalRegulations #EconomicPolicy
