Import Duty on Platinum Raised to 15.4%

· Platinum under HS code 7110, Customs Duty raised to 12.5% from 10% (Exemption of 10% by SNo. 364B of Jumbo Ntfn 50/2017 removed)

· Plus 1.5% AIDC also Notified

· All HS Code now under 7110 (except 71103100 and 73103900 which is Rhodium under 2.5% BCD) 12.5% BCD + 1.5% AIDC + SWS @10% = 15.4% BCD

India has raised total import duty on platinum to 15.4% from 10.75%, the government said in a notification on Monday, seeking to bring parity in import duty structure between gold and platinum.

The government in July had increased the import duty on gold to 15% but kept the tax on platinum imports unchanged at 10.75%.

However, the usage of platinum and palladium in the manufacture of precious metal chemicals, compounds (noble metal compounds and solutions) and catalytic converters will continue at basic customs duty of 7.5% subject to import of goods at concessional rate of duty (IGCR). Rhodium will also continue with basic custom duty (BCD) of 2.5%.

On July 1 this year, a hike was announced in the custom duty on gold from 7.5% to 12.5%. Gold also attracts a 2.5% agriculture infrastructure development cess (AIDC), taking the total import duty to 15%. However, at this time, the import duty was kept unchanged at 10.75%.

It is being presumed that the increase in duty on platinum is to plug a loophole which is helping bullion importers to make record profits.

There was a difference of import duty between gold and platinum in July. It is believed that some bullion importers are importing refined gold disguised as platinum alloy.

[Notification No. 52/2022-Customs dated 3 October 2022]

Seeks to increase basic customs duty on imports of platinum.

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section (3) of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely :-

In the said notification, in the Table, against S. No. 364B, in column (2), for the entry “7107 00 00, 7109 00 00, 7110, 7111 00 00, 7112, 7118”, the entry “7107 00 00, 7109 00 00, 7111 00 00, 7112, 7118” shall be substituted.

[F.No. CBIC-190354/261/2022-TO(TRU-I)-CBEC]