DGFT Restricts Imports of Precious Metal Alloys with High Gold Content

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 19.06.2025

DGFT Restricts Imports of Precious Metal Alloys with High Gold Content

The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry has issued Notification No. 18/2025-26 dated 17 June 2025, amending the import policy for certain items under Chapter 71 of the ITC (HS) 2022 Schedule I (Import Policy).

This notification immediately affects traders and importers dealing in Palladium, Rhodium, Iridium, Osmium, Ruthenium, and related alloys—especially where gold is present above 1% by weight.

Scope of Amendment

The revised policy pertains to the following ITC (HS) codes:

ITC (HS) Code	Description	Revised Import Policy
71102100	Palladium: Unwrought or Powder Form	Free, but Restricted if alloyed with >1% gold
71102900	Palladium: Other	Same as above
71103100	Rhodium: Unwrought or Powder Form	Same as above
71103900	Rhodium: Other	Same as above
71104100	Iridium, Osmium, Ruthenium: Unwrought or Powder Form	Same as above
71104900	Iridium, Osmium, Ruthenium: Other	Same as above

What Has Changed?

Status Quo (Earlier): All these items were categorized as “Free” under the import policy.
Now (Post Amendment): While these items remain “Free” for general imports, any alloy containing more than 1% gold by weight is now classified as “Restricted.”

This effectively means prior authorisation is now required for such imports under the Restricted category, bringing additional scrutiny and procedural checks.

Policy Rationale

This regulatory tightening serves multiple objectives:

Curb potential misuse of gold-containing precious metal imports that may evade customs duties;
Strengthen monitoring of alloy compositions, especially in the case of strategic metals like Palladium and Rhodium;
Reinforce India’s gold import management framework, aligning with broader economic safeguards against undervaluation or gold smuggling risks.

Impact on Importers

Importers dealing with platinum group metals must now verify alloy content carefully.
If gold is used in any quantity exceeding 1% by weight, they must apply for a DGFT import license.
Non-compliance could lead to seizure, penalties, or delays in customs clearance.
This move also affects traders in jewelry alloys, catalytic converters, and electronics, where such metals are commonly used.

Final Word

The Notification signals the Government’s intent to exercise stricter control over precious metals trade, especially where gold’s monetary implications are involved. Businesses in the bullion, jewelry, refining, and precious metal processing sectors must align their import strategies with the updated norms immediately.

Listen to this on our #YouTube Channel

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

Source: DGFT

Disclaimer

Handy Download:

DGFT Notification Download

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/