Archive · 5 Nov 2025
Traders Exploit Import Loophole for Platinum Gains, Avoiding Duty
Imagine there's a special rule for bringing in shiny platinum jewelry from other countries.
Normally, if you want to bring in platinum bars, you have to pay a tax.
But this rule lets people bring in platinum jewelry without that tax, as long as they plan to melt it down into bars later.
Some clever traders noticed this and started bringing in lots of platinum jewelry, which they then melt.
They sell these platinum bars in India, making extra money because they didn't have to pay the usual tax.
This is like finding a secret shortcut to pay less for something.
People who track these things say this is happening a lot, and the government might need to change the rule, like they did for silver jewelry, to stop this from costing the country a lot of tax money.
Bullion dealers and jewelers are reportedly exploiting an import rule loophole for platinum.
This loophole allows platinum jewelry to be imported without the usual duty, which is then melted into bars.
Daily imports of platinum jewelry have surged to 300-500 kg, a significant increase from annual figures.
Traders are making a profit of 4-4.5% by avoiding the 6.4% duty on platinum bars.
The India Bullion and Jewellers Association suggests moving platinum jewelry imports to the restricted category, similar to recent action taken for silver.
- Who
- Bullion dealers and jewellers
- What
- Exploiting a loophole in import rules to avoid duty on platinum jewellery, melting it into bars, and selling domestically.
- When
- For the past five days leading up to the article's publication.
- Where
- Amritsar and Delhi airports, India.
- Why
- To evade the 6.4% import duty on platinum bars and make a profit of 4-4.5%.
Bullion Trade Executive
General Importer
Legality of the Practice
Bullion Trade Executive
While not strictly illegal, it's a 'shocking' exploitation of an oversight by authorities.
General Importer
There is nothing illegal in such imports; traders are simply exploiting an oversight.
Motivation for the Practice
Bullion Trade Executive
Traders are making a neat 4-4.5% profit by evading the 6.4% duty on platinum bars.
General Importer
An importer bears the cost of melting jewelry into bars and offers a discount, resulting in a 4-4.5% return.
- Daily Platinum Jewellery Imports (Volume)
- 300-500 kg
- Daily Platinum Jewellery Import Value
- Up to ₹222 crore
- Daily Duty Avoided
- ₹14 crore (6.4% of ₹222 crore)
- Profit Margin for Traders
- 4-4.5%
- Applicable Trade Agreement
- Asean-India free-trade agreement
- Origin of Exploited Imports
- Indonesia
- Duty on Platinum Bars
- 6.4%