Government Revises Customs Duty Structure on Gold, Silver & Precious Metal Imports: Key Changes Explained
Government Revises Customs Duty Structure on Gold, Silver & Precious Metal Imports: Key Changes Explained
The Government of India has introduced major amendments to the customs duty structure applicable to gold, silver, platinum findings, precious metal ash, spent catalysts, and related imports through Notification No. 16/2026-Customs dated 12 May 2026. The revised notification will come into effect from 13 May 2026.
These amendments are expected to have a significant impact on bullion importers, refiners, jewellery manufacturers, recyclers, and the overall precious metals industry in India.
Overview of the New Customs Notification
The Ministry of Finance issued Notification No. 16/2026-Customs under the Customs Act, 1962 along with relevant provisions of the Finance Act, 2018 and Finance Act, 2021.
The notification modifies earlier customs notifications:
11/2018-Customs
11/2021-Customs
Several tariff headings and concessional duty entries have now been revised or expanded.
Major Changes Introduced in the Notification
1. Expansion of Tariff Coverage
Under Notification 11/2018-Customs, the government expanded the tariff headings covered under the notification.
Previously, only tariff heading 7108 was specified. Now, the revised notification includes:
7107
7108
7109
7111
7112
This widens the scope of customs applicability across multiple precious metal categories.
2. Changes in Customs Duty Rates
The government has revised duty rates for several precious metal products and related components.
Revised Duty Rates Include:
| Product Category | Revised Duty |
|---|---|
| Gold findings | 5% |
| Silver findings | 5% |
| Platinum findings | 5.4% |
| Precious metal spent catalyst/ash | 4.35% |
| Other goods under heading 7112 | 5% |
| Gold & Silver under specific notification | 4.35% |
These revisions are clearly specified in the updated entries under Sl. Nos. 15A to 15L.
What Are “Findings” in Jewellery?
The notification specifically explains the meaning of jewellery findings.
According to the government:
Gold, silver, or platinum findings refer to small components such as hooks, clasps, clamps, pins, catches, and screw backs used in jewellery pieces.
These small components are widely used in:
Earrings
Necklaces
Bracelets
Chains
Designer jewellery
The revised customs duty will directly affect jewellery manufacturing costs.
Special Provisions for Precious Metal Ash & Spent Catalysts
One of the most important amendments relates to imports of:
Spent catalyst
Precious metal ash
Precious metal recovery materials
The government has allowed concessional duty of 4.35%, but only if importers comply with strict procedural requirements.
Conditions for Importers
To avail concessional customs duty, importers must:
1. Follow Customs Concessional Rules
Importers must comply with:
Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
2. Submit Undertaking
The importer must declare:
Percentage of precious metals contained in the imported material
Goods are imported specifically for recovery/recycling purposes
3. Produce Environmental Clearance
Importers must provide certification from:
Ministry of Environment, Forest and Climate Change permitting import for recovery or recycling purposes.
Impact on the Jewellery Industry
Higher Manufacturing Costs
Jewellery manufacturers using imported findings and precious metal components may experience increased procurement costs.
This could lead to:
Higher jewellery prices
Increased production expenses
Reduced margins for manufacturers
Boost for Domestic Manufacturing
The revised duty structure may encourage:
Local component manufacturing
Domestic refining
Precious metal recycling
India may witness increased investment in:
Recycling plants
Precious metal recovery facilities
Refining technology
Impact on Bullion & Precious Metal Traders
Bullion traders dealing in:
Gold
Silver
Platinum
Precious metal residues
will need to carefully evaluate:
Import cost calculations
Duty structure changes
Inventory planning
Hedging strategies
Import compliance requirements may also become stricter for recycling-related imports.
Impact on Investors
Retail investors may see:
Increased physical bullion premiums
Slight increase in jewellery prices
Higher import-related costs
However, the policy may also strengthen:
Domestic bullion ecosystem
Refining sector
Circular economy for precious metals
Effective Date
The notification clearly states that:
The revised customs provisions will become effective from 13 May 2026.
Businesses importing affected goods after this date will be subject to the updated customs duty structure.
Conclusion
The latest customs amendments introduced by the Government of India represent a major policy update for the bullion, jewellery, and precious metals industry. By revising duty rates and tightening import conditions for recycling-related materials, the government aims to:
Strengthen domestic refining
Promote recycling
Improve customs regulation
Encourage organized precious metal trade
For jewellers, bullion traders, refiners, and importers, understanding these changes is essential for maintaining compliance and managing costs effectively in the evolving Indian precious metals market.
Source: Government of India, Ministry of Finance Notification No. 16/2026-Customs dated 12 May 2026.
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