India Revises Duty Drawback Rates for Precious Metals: What Exporters Need to Know (February 2026)
India Revises Duty Drawback Rates for Precious Metals: What Exporters Need to Know (February 2026)
Published: February 16, 2026 | Ministry of Finance, Department of Revenue
The Government of India has issued a significant customs notification that will directly impact exporters dealing in gold, silver, and precious metal jewellery. Notification No. 21/2026-Customs (N.T.), published in The Gazette of India (Extraordinary) on February 16, 2026, announces revised duty drawback rates under Chapter 71 of the All Industry Rates Schedule — and the changes are substantial.
What Is Duty Drawback?
Before diving into the specifics, it helps to understand what duty drawback means for exporters. Under Section 75 of the Customs Act, 1962, and Section 37(2) of the Central Excise Act, 1944, the Central Government allows exporters to claim a refund — known as a drawback — on customs and excise duties paid on inputs used in the production of exported goods. This mechanism is critical for keeping Indian exports competitive in global markets by reducing the tax burden embedded in the cost of production.
The rates for these refunds are periodically revised to reflect changes in international commodity prices, import duty structures, and export policy objectives.
What Has Changed?
The latest notification amends the principal notification No. 77/2023-Customs (N.T.), dated October 20, 2023, specifically updating three tariff items in Chapter 71 (Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals and Articles thereof).
Here is a summary of the revised figures in Column (4) — the drawback rate:
| Tariff Item | Description | Previous Rate (₹/kg) | Revised Rate (₹/kg) | Change |
|---|---|---|---|---|
| 711301 | Silver articles/jewellery | ₹524.27 | ₹639.59 | +₹115.32 (+22%) |
| 711302 | Gold articles/jewellery | ₹6,317.22 | ₹9,089.33 | +₹2,772.11 (+43.9%) |
| 711401 | Platinum articles/jewellery | ₹6,317.22 | ₹9,089.33 | +₹2,772.11 (+43.9%) |
These are meaningful upward revisions — particularly for gold and platinum exporters, where the drawback rate has increased by nearly 44%.
Why Are the Rates Being Revised Upward?
The significant hike in drawback rates for gold and platinum articles closely mirrors the sharp rise in international precious metal prices over the past year. Gold prices have seen considerable appreciation, pushing up the import duty component embedded in finished jewellery exports. By raising drawback rates, the government is effectively:
- Compensating exporters for the higher customs duties paid on imported raw gold and platinum.
- Maintaining the competitiveness of Indian jewellery exports in key markets like the UAE, USA, and Hong Kong.
- Aligning rates with the current commodity price environment following the last revision made via Notification No. 67/2025-Customs (N.T.) on October 27, 2025.
The silver rate has also been revised upward, though the magnitude of the increase is comparatively modest, consistent with a smaller rise in silver import prices.
Legal Basis and Authority
This notification is issued under the powers conferred by:
- Section 75 of the Customs Act, 1962
- Section 37(2) of the Central Excise Act, 1944
- Rules 3 and 4 of the Customs and Central Excise Duties Drawback Rules, 2017
It has been signed by V. Phanindra Vissapragada, Under Secretary (Duty Drawback), Ministry of Finance, and carries the file number F. No. 605/13/2023-(DBK).
What Should Exporters Do Now?
If you are an exporter of gold, silver, or platinum jewellery and articles, here is what this notification means for your business:
1. Update your drawback claims immediately. With effect from February 16, 2026, the new rates apply. Ensure your shipping bills and drawback claim forms reflect the updated figures.
2. Review your pricing models. The higher drawback entitlement improves your effective margin. This may also create an opportunity to revisit export pricing to remain competitive.
3. Consult your Customs House Agent (CHA). Ensure your CHA is aware of the revised tariff entries and that future claims are filed under the corrected rates.
4. Reconcile pending claims. If you have outstanding drawback claims filed under the old rates and the goods have not yet been exported, liaise with your port's customs department for applicable guidance.
Historical Context
The original drawback rate schedule was established through Notification No. 77/2023-Customs (N.T.) dated October 20, 2023. Since then, it has been periodically updated to stay in sync with market realities. The last amendment before this one was made in October 2025, and this February 2026 revision continues that pattern of regular recalibration.
This ongoing revision mechanism underscores the government's commitment to supporting the gems and jewellery export sector — one of India's most important foreign exchange earners — by ensuring the drawback framework stays relevant and practical.
Conclusion
The revised duty drawback rates announced on February 16, 2026, are a positive development for Indian exporters in the precious metals and jewellery segment. The near-44% increase in gold and platinum drawback rates, in particular, provides meaningful relief amid elevated global commodity prices. Exporters are encouraged to act promptly to update their compliance records and maximise the benefit under the new rates.
For the complete text of the notification, refer to Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated February 16, 2026 (G.S.R. 133(E)).
Disclaimer: This article is intended for informational purposes only and does not constitute legal or financial advice. Exporters should consult a licensed Customs House Agent or tax professional for guidance specific to their circumstances.
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