India has imposed restrictions on the import of platinum alloys with less than 99% purity, aiming to curb potential misuse of trade agreements and prevent unfair trade practices.
According to a notification issued by the Directorate General of Foreign Trade (DGFT), platinum in unwrought and powder form, along with other categories, has been reclassified from “free” to “restricted” for imports. However, platinum alloys with 99% or higher purity remain exempt from these restrictions.
The decision comes amid allegations that platinum alloys were being blended with gold to exploit a tariff differential of 2 percentage points, allowing traders to gain undue advantages. The move is also seen as an effort to plug loopholes in concessional duty imports from the UAE under the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
During the Joint Committee (JC) meeting under CEPA in October, India flagged concerns over a surge in imports of silver products, platinum alloys, and dry dates from the UAE, urging verification of compliance with rules of origin norms to prevent circumvention. The UAE had acknowledged the concerns and agreed to review the matter.