These imports are happening, under the HSN code no 71131922, from Thailand under the free-trade agreement (FTA), with zero per cent duty, said industry sources.
This is not the first time this is happening. Earlier, when import duty on gold was 15 per cent, a section of the trade (industry players) found ways to import it, again as platinum jewellery, at a concessionary duty. When the director general of foreign trade (DGFT), under the Union Ministry of Commerce, plugged this loophole, elements in the trade devised methods to bring gold in the name of platinum medallions and coins.
Even this route or loophole was interrupted/plugged by the DGFT.
Now, when gold has been trading at about ₹1.4 lakh per 10 gm for many weeks, a section of the trade is importing it duty-free. The FTA with Thailand is being used as an instrument in this, said the source in the industry with knowledge of these activities.
This platinum-studded jewellery contains 90 per cent gold, 4 per cent platinum, and 6 per cent copper or silver.
The loophole is being used for the past two months, and the goods are being imported through various ports in India.
Till now it is estimated that nearly 5 tonnes of such jewellery has landed in India, resulting in a 6 per cent duty loss -- of about ₹450 crore -- to the exchequer.
This comes at a time when demand for gold is low and its prices are volatile, amid global uncertainties after war in West Asia started and rising crude-oil prices are increasing inflationary pressures. As a result, gold demand has almost vanished. Aided by the import of gold in the name of platinum, the gold price in the Mumbai’s spot market is trading at a huge discount of $50 to $70 per ounce or ₹2,000 per 10 gram of gold.
While the government is worried about the current account deficit and the falling rupee, which is trading at around ₹95 per dollar, the genuine trade wants this loophole to be plugged immediately because such shady activities are affecting their sales.
 "gold, jewellery")