Importers dodge platinum duty

A few bullion dealers and jewellers are exploiting a loophole in an import rule to avoid duty on platinum, making a neat 4—4.5% running into tens of crores, according to a top executive from a bullion trade lobby.

- Ram Sahgal

Daily imports of platinum jewellery by volume have surged to as high as annual inbound shipments.

The practice, though not illegal, is “shocking” as platinum jewellery imports worth over ₹200 crore daily are escaping the import duty net, said Surendra Mehta, national secretary of India Bullion and Jewellers Association (IBJA). The central bank uses the association’s rates to redeem sovereign gold bonds.

These duty-free jewellery consignments were landing at Amritsar and Delhi airports, according to Mehta. The jewellery is then melted and converted into platinum bars and sold in the domestic market, evading the 6.4% duty on bars.