The Directorate General of Foreign Trade (DGFT), under the commerce ministry, on Monday notified changes to align India’s import policy schedule with modifications made in the Customs Tariff through Budget 2025, particularly in the segment of precious metals.
The move aims to ensure consistency between customs duty structures and regulatory frameworks for imports, PTI news reported.
As part of the Budget, new Harmonised System (HS) codes were introduced for several key products, including gold dore, silver dore, and platinum with a purity of at least 99 per cent. These changes enhance the tracking and classification of semi-processed metal forms, which are sometimes used to circumvent higher import duties applicable to fully refined metals.
A notable complexity addressed in the update involves platinum alloys. According to the rules set by the World Customs Organisation (WCO), any product containing as little as 1 per cent platinum could be classified as a platinum alloy.
Global Trade Research Initiative (GTRI) pointed out that some importers exploited this provision to import gold items—containing up to 99 per cent gold—from Dubai, falsely labelling them as platinum alloy to benefit from lower import duties under the India-UAE free trade agreement (FTA).
"To block this misuse, the government in the Budget introduced a new HS code specifically for platinum containing 99 per cent or more pure platinum," GTRI said.
Under the updated import policy, only this high-purity platinum category is eligible for preferential duty benefits under the UAE trade pact. Imports with other platinum compositions now face restrictions, effectively shutting down the misuse of the FTA by routing gold into India under the guise of platinum.
The move aims to ensure consistency between customs duty structures and regulatory frameworks for imports, PTI news reported.
As part of the Budget, new Harmonised System (HS) codes were introduced for several key products, including gold dore, silver dore, and platinum with a purity of at least 99 per cent. These changes enhance the tracking and classification of semi-processed metal forms, which are sometimes used to circumvent higher import duties applicable to fully refined metals.
A notable complexity addressed in the update involves platinum alloys. According to the rules set by the World Customs Organisation (WCO), any product containing as little as 1 per cent platinum could be classified as a platinum alloy.
Global Trade Research Initiative (GTRI) pointed out that some importers exploited this provision to import gold items—containing up to 99 per cent gold—from Dubai, falsely labelling them as platinum alloy to benefit from lower import duties under the India-UAE free trade agreement (FTA).
"To block this misuse, the government in the Budget introduced a new HS code specifically for platinum containing 99 per cent or more pure platinum," GTRI said.
Under the updated import policy, only this high-purity platinum category is eligible for preferential duty benefits under the UAE trade pact. Imports with other platinum compositions now face restrictions, effectively shutting down the misuse of the FTA by routing gold into India under the guise of platinum.
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