Government bans import of platinum alloy, importers will now have to take approval from DGFT

On Wednesday, the government banned the import of platinum alloy that has less than 99 percent purity. This has been done to control the import of this precious metal mixed with large quantity of gold. The importers will now be required to take import authorization from the Directorate General of Foreign Trade (DGFT).

This step has been taken after some such cases where this alloy was imported along with a large amount of gold to take benefit of the differential tariff between gold and platinum. "Platinum import policy has been revised from free to restricted. This will not include platinum alloys containing 99 percent and above purity by weight platinum," DGFT said through a notification.

The government has allowed the free importation of platinum alloys that are 99 percent and more to ensure an unobstructed supply of platinum to be employed in jewelry manufacturing and industries.

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

GTRI had said that currently gold can be imported from Dubai at 5 percent duty, but if the alloy contains 2 percent platinum then it will become zero in three years. GTRI had also claimed that many imports do not meet the conditions of the rules of origin and, therefore, are not eligible for concessions.

In October 2024, India raised concerns over a surge in imports of silver products, platinum alloys, and dried dates from the UAE and urged the country to ensure that rules under the free trade agreement (FTA) are not circumvented. The UAE agreed to examine the concerns raised by India.