India Tightens Grip on Platinum Alloy Imports to Curb Unfair Trade

India implements restrictions on platinum alloys with less purity to address unfair trade practices. The move aims to prevent misuse linked to tariff benefits. The Directorate General of Foreign Trade now classifies these under the 'restricted' category, tightening policies that may affect imports from UAE.

In a decisive move to counter unfair trading practices, India on Wednesday imposed import restrictions on platinum alloys with purity below 99 percent. Previously categorized as 'free,' the import of these alloys is now listed under the 'restricted' category, as per the latest notification from the Directorate General of Foreign Trade (DGFT).

The overarching motive behind this stringent measure appears to be the prevention of tariff exploitation. Allegations surfaced that these platinum alloys were being mixed with gold to leverage a 2-percent tariff differential, sparking concerns of deceptive trade practices.

This measure is particularly significant in the context of trade relations with the UAE, under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Concerns were raised at a Joint Committee meeting in October about the surge in imports of silver products, platinum alloys, and dry dates. India urged the UAE to uphold compliance with the agreed rules of origin norms, ensuring no circumvention occurs.

(With inputs from agencies.)