Duty-free gold imports enter India as platinum jewellery

Traders are bypassing high Indian import duties by misclassifying platinum-studded jewellery containing up to 90% gold under duty-free or lower-tariff categories, causing nearly ₹450 crore in revenue loss..
The India-ASEAN FTA was used to import these goods. To curb this, the DGFT has restricted such imports until April 30, 2026.  

Earlier, when import duty on gold was 15 per cent, a section of the trade (industry players) found ways to import it, again as platinum jewellery, at a concessionary duty.

Key Details Regarding the Loophole:

• The Method: Gold-based, platinum-studded jewellery is imported from countries like Thailand, leveraging FTA provisions to avoid the standard 6% import duty.
• Composition: These imported items typically consist of 90% gold, 4% platinum, and 6% other metals.
• Impact: Approximately 5 tonnes of such jewelery were imported within a few months, significantly affecting domestic gold prices.
• Government Action: The Directorate General of Foreign Trade (DGFT) has moved these items from “Free” to “Restricted” status until April 30, 2026, requiring prior approval, following similar restrictions on silver jewellery. 

This loophole allowed importers to convert the imported items into gold bars, avoiding tax and resulting in a “substantial tax loss” to the government.