“The import policy of the ITC(HS) codes under Chapter 71 of ITC (HS) 2022, Schedule (Import Policy), newly created under the Finance Act, 2025 dated March 29, 2025, is notified with immediate effect,” per a notification issued on Monday
The Directorate General of Foreign Trade has amended the import policy and policy conditions of specific Indian Trade Classification (Harmonised System) 2022, including for precious metals, in sync with the Finance Act 2025.
“The import policy of the ITC(HS) codes under Chapter 71 of ITC (HS) 2022, Schedule (Import Policy), newly created under the Finance Act, 2025 dated March 29, 2025, is notified with immediate effect,” per a notification issued on Monday.
This alignment ensures consistency between customs duties and import regulations, pointed out Ajay Srivastava from the Global Trade Research Initiative.
New HS codes for key items
“The Budget introduced new HS codes for key items like gold dore, silver dore, and platinum containing at least 99 per cent platinum. Separate codes for gold and silver dore help customs track semi-processed forms of these metals, which are sometimes used to bypass higher duties on refined gold and silver,” Srivastava explained.
The Finance Act 2025 also tried to tackle a more complex issue involving platinum alloys. Under World Customs Organisation rules, any item containing even 1 per cent platinum could be declared as a platinum alloy. “Some importers used this loophole to bring in products that were 99 per cent gold from Dubai, labelling them as platinum alloy to take advantage of lower duties under the India-UAE FTA. To block this misuse, the government in the budget introduced a new HS code specifically for platinum containing 99 per cent or more pure platinum,” Srivastava said.
Only this category qualifies for duty benefits under the India-UAE FTA. Imports under other platinum compositions were restricted. This effectively closed the route for importing gold disguised as platinum, he added.
Published on May 19, 2025
