India, through the Directorate General of Foreign Trade (DGFT), has imposed new restrictions on the import of colloidal precious metals like liquid gold and silver. These measures, implemented on June 19, 2025, aim to prevent the misuse of such imports—often used to bypass conventional customs duties—especially from countries like Thailand.
The Government of India has enforced fresh restrictions on the import of colloidal precious metals, such as liquid gold and silver, effective June 19, 2025. The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, introduced this measure after identifying patterns of misuse in these imports.
Colloidal precious metals refer to suspensions of nanoparticles of gold or silver in liquid. According to trade experts, certain importers have been using this method to bring in gold from countries like Thailand under more lenient duty structures, thereby sidestepping higher tariffs typically applied to standard forms of the yellow metal.
The new notification by the DGFT mandates that these specific forms of precious metals can now only be brought into India under the “restricted” category. This change essentially means that importers must seek a special license for approval before bringing in these goods.
A senior official from the Ministry of Finance commented, “This decision aligns with efforts to tighten loopholes in the trade framework that could harm domestic bullion markets and revenue collection.”
The action comes at a time when India remains one of the world’s largest consumers of gold. Unregulated imports not only affect local jewellers and refiners but also create economic distortions, making accurate monitoring of bullion flow difficult.
Industry insiders believe that these curbs will help restore parity in import regulations and safeguard legitimate gold traders. The move is expected to hit a small but growing niche of importers leveraging advanced chemical methods to skirt duty protocols.
As part of wider trade regulation reforms, the Central Board of Indirect Taxes and Customs (CBIC) may also issue clarifications to ensure uniform implementation at various ports and entry points.
While the DGFT’s decision is seen as a technical regulatory update, its implications are significant for India’s multi-billion-dollar gold industry, especially ahead of the festive and wedding season when demand for precious metals surges.