India Tightens Import Rules on Precious Metals to Prevent Duty Evasion
India's Directorate General of Foreign Trade has revised import regulations for precious metals to close loopholes exploiting duty benefits. The new measures focus on aligning customs duties with import policies, introducing specific codes, and restricting imports to enhance transparency and curb misuse of trade agreements.
- Country:
- India
In a move aimed at bolstering the integrity of its trade system, the Directorate General of Foreign Trade (DGFT) has announced new regulations to streamline the import of precious metals. The updated rules seek to harmonize customs duties with import guidelines, addressing discrepancies that previously allowed importers to evade higher taxes.
The latest directive, Notification No. 08/2025, revamps India's Import Policy Schedule in accordance with updates in the Union Budget 2025. These changes reflect adjustments in the Customs Tariff Schedule, especially for metals like gold, silver, and platinum. Notably, the government targets a key loophole concerning platinum alloys, whereby even a minimal presence of platinum could redefine the metal's classification.
According to the Global Trade Research Initiative (GTRI), unscrupulous importers exploited this by labeling predominantly gold items as platinum alloys to benefit from lower duties under the India-UAE Free Trade Agreement (FTA). To counter this, a new high-purity HS code has been issued for platinum. Concurrently, stricter import restrictions have been applied to gold and silver, demanding higher purity standards and designated import channels.
(With inputs from agencies.)
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