India curbs platinum alloy imports
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New Delhi: The Indian government on Wednesday imposed import restrictions on platinum alloy with a purity of less than 99% in a bid to curb the illicit imports of this precious metal, which is often blended with significant amounts of gold.
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 move comes after instances were detected where importers exploited the tariff difference between gold and platinum by importing platinum alloy heavily mixed with gold.
"The import policy of platinum...is revised from free to restricted except for platinum alloys of 99 percent or more purity by weight of platinum," the DGFT said in a notification.
The government allows unrestricted import of high-purity platinum alloy (99% or higher) to ensure a stable supply for jewellery makers and industrial users.
Economic think tank GTRI urged a review of the India-UAE trade pact, citing concerns over unlimited, tariff-free imports of gold, silver, platinum, and diamonds from the UAE. GTRI noted that gold imports from Dubai currently attract a 5% duty, but this will drop to zero in three years if the alloy contains just 2% platinum, raising concerns about misuse. The think tank also alleged that many imports fail to meet Rules of Origin requirements, making them ineligible for concessions.
India expressed concerns in October 2024 about a significant surge in imports of silver products, platinum alloy, and dry dates from the UAE, urging the country to ensure compliance with the free trade agreement (FTA) rules. The UAE agreed to investigate these concerns, which were raised amid suspicions that importers were exploiting the agreement to circumvent rules.
(inputs from PTI)