The government on Wednesday imposed import curbs on platinum alloy with less than 99 per cent purity to curb illicit imports of this precious metal 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 decision follows cases where this alloy blended with significant amounts of gold was imported to exploit the tariff differential between gold and platinum.
"Import policy of platinum...is revised from free to restricted except for platinum alloy of 99 per cent or more purity by weight of platinum," the DGFT said in a notification.
To ensure a smooth supply of platinum for jewellery manufacturing and industrial use, the government allows the unrestricted import of platinum alloy with 99 per cent or higher purity of platinum.
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 per cent duty, but this will drop to zero in three years if the alloy contains 2 per cent 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 (FTA). The UAE had agreed to examine the concerns raised by India.