• The government imposed import curbs on platinum alloy with less than 99 per cent purity.

• Importers of such platinum alloys are now required to obtain import authorisation from the Directorate General of Foreign Trade (DGFT) for the inbound shipments.

• The decision follows cases where this alloy blended with significant amounts of gold was imported to exploit the tariff differential between gold and platinum.

Re-classification of Platinum Imports

• Platinum in unwrought and powder form, along with other categories, has been reclassified from ‘free’ to ‘restricted’ for imports.

• However, platinum alloys with 99 per cent or higher purity remain exempt from these restrictions.

Reasons for the Move:

• The decision follows allegations that platinum alloys were being blended with gold to exploit a tariff differential of 2 percentage points, allowing traders to gain undue advantages.

• The restrictions aim to plug loopholes in concessional duty imports from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

• The restrictions are expected to curb the misuse of trade agreements and ensure a level playing field for domestic industries.

• By addressing the blending of platinum alloys with gold, the move aims to prevent revenue losses and protect the interests of Indian traders and manufacturers.

Directorate General of Foreign Trade (DGFT)

• Directorate General of Foreign Trade (DGFT) is an attached office of the Ministry of Commerce and Industry. 

• Right from its inception till 1991, when liberalisation in the economic policies of the government took place, DGFT has been essentially involved in the regulation and promotion of foreign trade.

• Keeping in line with policies of liberalisation and globalisation and the overall objective of increasing exports, DGFT has been assigned the role of a “facilitator”. The transition has been from prohibition and control of imports/exports towards promotion and facilitation of exports/imports, keeping in view the interests of the country.

• This Directorate, with headquarters at New Delhi, is headed by the Director General of Foreign Trade. 

• It assists the government in formulation of Foreign Trade Policy (FTP) and is responsible for implementing the Policy and schemes under FTP with the main objective of promoting India’s exports. 

• Further, it is responsible for implementation of Foreign Trade (Development and Regulation) Act, 1992 and Rules and Regulations notified thereunder. 

• The DGFT also issues authorisations to exporters and monitors their corresponding obligations through a network of 24 regional offices.

(The author is a trainer for Civil Services aspirants.)