• The Directorate General of Foreign Trade (DGFT) has imposed import curbs on certain colloidal precious metals, with an aim to check the illegal inflow of gold into India in liquid form.

• Colloidal precious metals are suspensions of gold or silver nanoparticles dispersed in liquid.

• This was necessitated to regulate import of gold in the garb of chemical compounds.

• This measure expands upon the existing restriction on the import of platinum to now include the entire Customs Tariff Heading (CTH) 7110 at the 4-digit level, thereby ensuring uniformity in the import policy governing precious metals and their alloys.

• The import policy of items covered under CTH 2843 is revised from free to restricted with immediate effect.

• Goods under this number include colloidal precious metals; inorganic or organic compounds of precious metals.

• The import of palladium, rhodium and iridium alloy consisting of gold more than one per cent by weight is restricted.

• This measure expands upon the existing restriction on the import of platinum to bring uniformity in the import policy governing precious metals and their alloys.

• At the same time, the policy facilitates trade by allowing free import of alloys containing less than one per cent gold, thereby ensuring continued availability of inputs for industrial and manufacturing sectors, including electronics, auto components, and specialised chemical industries, without disruption.

• This calibrated approach balances trade facilitation with the need for regulatory oversight.

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.)