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India hikes import duty on platinum to avoid illegal imports of gold

Sources told CNBC-TV18 that there had been several import cases where platinum alloys with just 4 percent platinum and the rest were gold and they were being cleared at the reduced rate of 11 percent. 

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By Nishtha Pandey  Oct 4, 2022 2:46:12 PM IST (Published)

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India hikes import duty on platinum to avoid illegal imports of gold
India has raised the Customs duty on platinum to 15.4 percent from 10.75 percent in a bid to curb its import. According to a notification from the Finance Ministry, the revised import duty on platinum is effective from October 3.

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In July, the government raised the import duty on gold to 15 percent while maintaining the import duty on platinum at 10.75 percent
Due to the duty differential, certain importers of bullion were able to import refined gold that was masked as platinum alloy by paying a lesser charge of 10.75 percent.
Due to refiners importing significant quantities of gold that contained modest amounts of platinum at a cheaper tariff of 10.75 percent, platinum imports last month multiplied to a record high. The purpose of the duty structure's parity is to close the duty difference gap.

Sources told CNBC-TV18 that there had been several import cases where platinum alloys with just 4 percent platinum and the rest were gold, and they were being cleared at the reduced rate of 11 percent.

Industrial Platinum and palladium are used in manufacturing precious metal chemicals, compounds( noble metal compounds and solutions), and catalytic converters continue to attract low import duty.

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