The Union government imposed restrictions on Wednesday on importing platinum alloy with less than 99% purity to curb illegal imports mixed with gold.
Importers of such alloys now need authorisation from the Directorate General of Foreign Trade. This decision follows instances where alloys blended with significant amounts of gold were imported to exploit the tariff differences between gold and platinum.
According to a DGFT notification, the import policy for platinum has been changed from free to restricted, except for platinum alloy with 99% or higher purity.
To ensure a smooth supply of platinum for jewellery manufacturing and industrial use, the government allows unrestricted import of platinum alloy with 99% or higher purity.
Economic think tank GTRI last year sought urgent review of India-UAE trade, the pact stating that the agreement allows unlimited imports of gold, silver, platinum, and diamonds from the UAE into India with zero tariffs.
It had highlighted that currently, gold can be imported from Dubai at 5% duty, but this will drop to zero in three years if the alloy contains 2% platinum. The GTRI had also claimed that many imports do not meet Rules of Origin conditions and, hence, do not qualify for concessions.
In October 2024, India raised concerns over a jump in imports of silver products, platinum alloy, and dry dates from the UAE and urged the country to ensure that the rules are not circumvented under the free trade agreement. The UAE had agreed to examine the concerns raised by India.
(With PTI Inputs)
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