|
The Directorate General of Foreign Trade (DGFT) has issued a new notification to streamline the import of precious metals, ensuring consistency between customs duties and import regulations.
According to the Global Trade Research Initiative (GTRI), the move will help plug loopholes that were previously misused by importers to bypass higher duties. The DGFT Notification No. 08/2025, released on Monday updates India's Import Policy Schedule under the ITC (HS) 2022 classification. This aligns it with the changes introduced in the Union Budget 2025 to the Customs Tariff Schedule, particularly concerning precious metals like gold, silver, and platinum. One of the major loopholes involved platinum alloys. As per international rules under the World Customs Organization (WCO), any metal containing even 1 per cent platinum could be declared a platinum alloy. Some importers took advantage of this by labeling products that were actually 99 per cent gold as platinum alloy to benefit from lower duties under the India-UAE Free Trade Agreement (FTA). To address this, the government introduced a new HS code for platinum with 99 per cent or more purity. Only this category will now qualify for duty benefits under the FTA, effectively closing the route for importing gold disguised as platinum. The Budget 2025 had introduced new HS (Harmonized System) codes for key items, including gold dore, silver dore, and platinum with at least 99 per cent purity. GTRI also added that by creating separate codes for semi-processed forms like gold and silver dore, customs authorities can now better track and regulate these imports. These measures are especially aimed at preventing the misuse of lower duties meant for semi-processed metals. The DGFT notification issued on Monday also made changes to import rules for gold and silver in various forms. Several old HS codes were deleted and replaced with new ones. For silver, the import of unwrought silver with 99.9 per cent or higher purity has been restricted. It can now only be imported through nominated agencies or qualified jewellers via the India International Bullion Exchange (IIBX). However, bars of silver with similar purity under a newly introduced code are still free for import, subject to Reserve Bank of India (RBI) regulations. In the case of gold, certain unwrought and semi-manufactured forms have been deleted or reclassified. Imports of gold with 99.5 per cent or higher purity are now restricted and can be brought in only through nominated agencies, qualified jewellers via IIBX, or India-UAE Tariff Rate Quota (TRQ) holders. Additionally, gold dore can be imported by refineries under a license with an Actual User condition. The new notification is expected to enhance transparency, reduce misuse of trade agreements, and bring India's import rules in line with the latest tariff changes. (ANI)
|
