Page 7 - Bullion World Volume 5 Issue 06 June 2025

Bullion World | Volume 5 | Issue 06 | June 2025

EDITORIAL Platinum of 99% purity or above will now fall under
the free import category, classified specifically
under HS code 71101111 for unwrought forms and
71101121 for powdered forms. Conversely, platinum
products with purity below 99%—classified under
Dear Readers, HS codes 71101119 (unwrought) and 71101129
(powdered)—will be treated as restricted items,
In a significant move to safeguard the integrity facing tighter import controls.
of import duties and curb the misuse of trade
agreements, the government has introduced revised Additionally, to streamline and simplify the
regulations concerning the classification and import classification system, several legacy HS codes,
of platinum products. According to guidelines set by including 71101110 (unwrought platinum form)
the World Trade Organisation (WTO), any product and 71101910/71101900, have been removed from
containing at least 1% platinum qualifies as a the tariff schedule. This consolidation is expected
platinum alloy. to provide clarity, reduce ambiguities, and improve
enforcement capabilities. These measures represent
This broad classification, however, had been exploited a proactive step by the government to align customs
by importers to declare platinum alloys with high classifications with real trade practices and to ensure
gold content as "platinum alloys". By doing so, they that duty benefits under free trade agreements are
availed lower customs duty rates granted under the availed only by genuine importers of high-purity
India-UAE Comprehensive Economic Partnership platinum.
Agreement (CEPA)—specifically, duty rates of 5% in
2024 and a further reduced 2.5% in 2025. To address Bilateral agreements such as FTA and CEPA entail
this glaring loophole and restore fairness in trade concessions on tariffs. However, such concessions
practices, the government has introduced a new if not harmonised well, create distortions. A 1%
Harmonised System (HS) code dedicated exclusively concession on gold imported through India-UAE
to platinum products with a purity of 99% or higher. CEPA results in the flow of standard gold through
this route. It also makes a 0.65% concession offered
Under this revised framework, only imports of high- to licensed gold refiners for importing gold dore
purity platinum will be eligible for the preferential uneconomical. Should Chapter 71 be kept out of FTA
duty benefits stipulated by CEPA. Platinum alloys and CEPA? Is it only chapter 71? Or should it also
with purity levels below this threshold will now be include the precious metals part of Chapter 28?
subjected to import restrictions, effectively blocking
the avenue previously used for disguised gold
imports. In line with these regulatory changes, the
HS codes for unwrought platinum have undergone a Best wishes,
thorough revision. G Srivatsava
Editor

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