India Tightens Platinum Alloy Import Rules, Allowing Only 99% Pure Metal to Prevent Gold Mislabeling and Tax Evasion

India Tightens Platinum Import Rules to Curb Gold Mislabeling

A new government rule tightens the import regime for platinum alloys. It restricts all variants unless they are at least ninety-nine percent pure and requires government clearance before import. The aim is to seal off a loophole used to dodge higher duties on gold.

What Has Changed

• Import of platinum alloys now requires prior government approval.
• Only platinum that is at least ninety-nine percent pure can be imported freely.
• The move targets tax evasion by preventing traders from misclassifying gold as platinum to obtain lower duties.

Why It Was Implemented

india is one of the worldS largest consumers of gold. There has been a rise in attempts to mislabel gold imports as platinum to benefit from lower duties.Finance ministry officials said the measure is crucial for safeguarding the import tax system and ensuring fair trade in the precious metals market.

Impact on Markets

Jewelry and precious metals markets may experience minor price shifts as players adjust to stricter oversight. Gold importers could alter their strategies to remain compliant. Indian consumers might see small changes in prices for gold and platinum jewelry.

Key Facts at a Glance

Aspect	before	Now
Import regime for platinum alloys	Less stringent; fewer approvals	Requires government clearance
Eligible platinum for free import	Various alloys possible	Only ninety-nine percent pure platinum freely importable
Primary objective	Avoid duties by mislabeling	Combat mislabeling and tax evasion
Gold import duties	Fifteen percent	Remains in effect

This policy aligns with ongoing efforts to regulate precious metal imports, ensuring compliance and protecting government revenue.

Reader Questions

Do you expect price fluctuations in the jewelry market as traders adjust to the new rules? Will buyers favor pure platinum or adapt labeling practices to stay compliant?

Disclaimer: This article provides informational coverage and does not constitute financial or legal advice.

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Regulatory Overview: New Platinum Alloy Import Rules in India

The Ministry of Commerce, through the Directorate General of Foreign Trade (DGFT), issued Notification S. 2(1)(v) on 15 September 2025, tightening import standards for platinum alloys. Effective 1 January 2026, only alloys with a minimum purity of 99 % platinum will be cleared by customs. The move targets two persistent challenges: gold mislabeling-were lower‑grade platinum alloys are marketed as “gold‑plated” to command higher prices-adn tax evasion linked to understated customs values.

Key Provisions of the 99 % Purity mandate

1. purity Threshold – All imported platinum alloys must be certified as ≥ 99 % pure by an internationally accredited laboratory (e.g.,ISO 17025‑accredited).
2. Labelling Requirements – Packaging and invoices must explicitly state the metal’s purity percentage and alloy composition. “Gold‑plated” or “gold‑filled” descriptors are prohibited for any alloy below the threshold.
3. Customs Valuation – the declared value must reflect the actual market price of 99 % pure platinum; any discount based on lower purity will trigger a tax evasion audit.
4. GST Adjustment – The Goods and Services Tax (GST) rate for platinum jewelry remains at 3 %, but enforcement will now cross‑check GST filings against the purity certificates.
5. penalty Structure – Non‑compliant shipments face a 30 % surcharge on the declared duty, seizure of goods, and potential criminal prosecution under the Customs Act 1962.

Impact on the indian Jewelry Industry

stakeholder	Direct Impact	Strategic Response
Jewelers	Must source higher‑grade platinum, increasing raw‑material costs by ≈ 5‑8 % on average.	Shift to bulk purchasing from certified suppliers; explore re‑purification services.
importers	New documentation (purity certificates, lab reports) adds administrative load.	Implement digital compliance portals linked to DGFT’s e‑Way bill system.
Customs Brokers	Heightened verification steps prolong clearance times (average increase of 2-3 days).	Adopt pre‑clearance audits and maintain a registry of approved labs.
Consumers	Greater confidence in metal authenticity; potential price uplift for genuine platinum pieces.	Promote purity‑transparent marketing (e.g., QR codes linking to certification).

Compliance Checklist for Importers

1. Verify Supplier Accreditation – Ensure the foreign supplier’s assay laboratory holds ISO 17025 accreditation.
2. Obtain Certified Assay Report – The report must indicate ≥ 99 % platinum and be signed by an authorized chemist.
3. Update Commercial Invoice – Include:

• Exact purity percentage
• Full alloy composition (e.g., pt 99 % + Ir 1 %)
• Reference to DGFT Notification S. 2(1)(v)
• File E‑Way Bill with Purity Details – Attach a digital copy of the assay report to the e‑Way Bill before shipment.
• conduct Internal GST Reconciliation – Cross‑check GST filings against the declared purity to avoid mismatches.
• Maintain Records for 7 Years – Customs authorities may request documentation during post‑clearance audits.

Benefits of the 99 % Purity Standard

• Consumer Trust – Transparent purity labeling reduces fraud, boosting buyer confidence in Indian platinum jewelry.
• Revenue Protection – Accurate customs valuation curtails tax leakage, safeguarding government collections.
• Market Differentiation – Brands that comply can market themselves as “pure‑platinum certified,” gaining a competitive edge.
• Supply‑Chain Integrity – Standardized documentation streamlines traceability from mine to market.

Case Study: Titan‘s Supply‑Chain Realignment (Q4 2025)

Titan Company limited, India’s largest jewelry maker, announced a strategic overhaul after the DGFT notification:

• Supplier Shift – Re‑contracted with two swiss refineries offering 99.5 % pure platinum at a 6 % premium.
• In‑House Assay Lab – Established a dedicated assay laboratory in Mumbai to certify all incoming shipments, reducing reliance on external labs.
• Digital Traceability – Integrated blockchain‑based certification, allowing customers to scan a QR code and view the full purity chain.

Result: Within six months, Titan reported a 4 % increase in sales of pure‑platinum bracelets, attributing growth to higher consumer confidence and the brand’s “purity guarantee.”

Practical tips to avoid Penalties

• Pre‑Screen Suppliers – Request a sample assay report before finalizing contracts.
• Automate Documentation – Use ERP modules that auto‑populate purity fields on invoices and customs filings.
• Train Staff – Conduct quarterly workshops on DGFT compliance and GST reconciliation for the finance team.
• Engage a Licensed Customs Broker – Choose brokers with proven experience in precious‑metal clearances.
• Monitor Regulatory Updates – Subscribe to the DGFT’s weekly bulletin to stay ahead of any amendment to the purity rule.

Real‑World Example: Smuggler Seizure (January 2026)

Customs officials seized a shipment of platinum‑copper alloy falsely declared as “gold‑plated” worth ₹ 12 crore. The purity was only 95 % platinum. The importer faced a ₹ 3.6 crore penalty (30 % of the duty) and criminal charges under the Customs Act. This enforcement action underscores the strict vigilance accompanying the new import rule.