The Government of India has revised the customs duty framework for specified gold and silver imports through Notification No. 16/2026-Customs and Notification No. 17/2026-Customs, effective 13 May 2026. Under the revised structure, customs duty on specified gold and silver imports has been increased from 4.35% to 10%, while multiple trade reports indicate the effective total import levy on gold and silver may now stand at 15%, comprising 10% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC), compared to the earlier effective levy of 6%, which comprised 5% BCD and 1% AIDC.
Quick Summary
- Government revises customs duty framework through Notification No. 16/2026-Customs and 17/2026-Customs
- Customs duty on specified gold and silver imports increased from 4.35% to 10%
- Revised provisions effective from 13 May 2026
- Effective total import levy on gold and silver widely seen at 15%
- Gold and silver tariff headings 7108 and 7106 covered under revised structure
- Gold findings and silver findings to attract 5% customs duty
- Platinum findings to attract 5.4% customs duty
- Spent catalysts and recycling-related imports under tariff heading 7112 retain concessional 4.35% duty
- Industry expected to monitor impact on pricing, sourcing, manufacturing costs, and consumer demand
Finance Ministry Revises Customs Framework for Bullion Imports
Fresh Finance Ministry notifications revise the customs framework for bullion, jewellery findings, recycled precious metals, and related imports, triggering major implications for India’s gems and jewellery industry.
Major Customs Duty Revision Announced
In a significant move for India’s bullion and jewellery trade, the Ministry of Finance, Department of Revenue, has issued fresh customs notifications revising the import duty structure applicable to specified gold and silver imports along with several categories linked to precious metals, jewellery findings, and recycling-related materials.
Effective Date of New Notifications
The revised provisions, introduced through Notification No. 16/2026-Customs and Notification No. 17/2026-Customs, will come into effect from 13 May 2026.
Duty Rate Revised Under Notification No. 17/2026-Customs
One of the most important amendments comes under Notification No. 17/2026-Customs, wherein the government has amended Notification No. 57/2000-Customs by replacing the existing customs duty rate of 4.35% with 10% for specified entries covered under the notification.
Amendment Language in the Notification
The notification states:
“for the entry ‘4.35%’ wherever it occurs, ‘10%’ shall be substituted.”
Gold & Silver Tariff Headings Clarified
While Notification No. 17/2026-Customs itself does not directly mention gold or silver by name, Notification No. 16/2026-Customs clarifies the relevant tariff headings linked to the amended framework.
Tariff Headings Covered Under Revised Framework
Under Sl. No. 15K, the notification specifically refers to:
“7106, 7108 — Gold and Silver covered under Sl. No. 1 of TABLE of notification No. 57/2000-Customs…”
Tariff Heading 7106 and 7108 Explained
Tariff heading 7106 relates to silver, while tariff heading 7108 relates to gold. Since Notification No. 17/2026-Customs replaces the applicable rate under the same Notification No. 57/2000-Customs framework from 4.35% to 10%, the amendment effectively raises the customs duty applicable to specified gold and silver imports covered under those entries.
Effective Import Levy Seen at 15%
Multiple international and trade reports, including Reuters, have further indicated that the revised framework effectively raises the total import levy on gold and silver to 15%, comprising 10% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC). However, while the Gazette notifications explicitly confirm the 10% customs duty amendment, the uploaded notifications do not separately specify the AIDC breakup.
Industry Impact Expected Across Bullion Trade
The latest revisions are expected to significantly impact bullion importers, jewellery manufacturers, refiners, wholesalers, retailers, exporters, and the broader precious metals trade, particularly at a time when international gold prices remain elevated and global geopolitical uncertainties continue to support safe-haven demand.
Market Participants Monitoring Implications
Industry participants are likely to closely monitor the implications on bullion premiums, domestic pricing, manufacturing costs, sourcing strategies, working capital requirements, and consumer demand in the coming weeks.
Wider Restructuring of Precious Metal Tariff Categories
Alongside the bullion duty revisions, Notification No. 16/2026-Customs introduces a wider restructuring of customs duty classifications and tariff coverage across several precious metal categories.
Revised Customs Duty Structure
Under the revised structure:
Gold findings will attract 5% customs duty
Silver findings will attract 5% customs duty
Platinum findings will attract 5.4% customs duty
Goods under tariff heading 7118 will attract 5% customs duty
Goods under tariff headings 7107 and 7109 will attract 5% customs duty
Goods under tariff heading 7111 will attract 5.4% customs duty
Definition of Jewellery Findings Clarified
The notification also clarifies the definition of jewellery “findings,” referring to small but essential jewellery components such as hooks, clasps, clamps, pins, catches, and screw backs used to hold jewellery pieces or components in place during manufacturing.
Platinum Bullion Not Covered Under 10% Framework
Importantly, the notifications do not indicate that platinum bullion imports have been raised to 10%. The documents specifically identify only gold and silver under the amended 10% framework, while platinum findings are separately mentioned at a customs duty rate of 5.4%.
Concessional Duty Continues for Precious Metal Recycling Imports
Another key amendment relates to imports of spent catalysts or ash containing precious metals under tariff heading 7112. Such imports will continue to attract a concessional customs duty rate of 4.35%, subject to specified compliance procedures and environmental approvals.
Compliance Conditions for Concessional Imports
Importers availing the concessional framework must comply with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022, declare the percentage of precious metals contained in the imported material, and furnish certification from the Ministry of Environment, Forest and Climate Change permitting imports for recovery or recycling purposes.
Expanded Tariff Coverage Under Revised Framework
The revised framework also expands tariff coverage by including additional headings such as 7107, 7109, 7111, and 7112 alongside existing precious metal categories, thereby widening the customs structure governing bullion, precious metal compounds, industrial inputs, recycled materials, and jewellery-related imports.
Global Bullion & Jewellery Industry Watching Closely
The latest customs revisions are expected to be closely watched across the global bullion and jewellery ecosystem as industry stakeholders evaluate the broader implications of the government’s latest policy intervention.
FAQs
What is the new customs duty on gold and silver imports in India?
The revised customs duty on specified gold and silver imports has been increased to 10% under Notification No. 17/2026-Customs.
When will the revised customs duty structure come into effect?
The revised provisions will come into effect from 13 May 2026.
Is the effective import levy on gold and silver now 15%?
Multiple international and trade reports, including Reuters, indicate that the effective levy is now 15%, comprising 10% Basic Customs Duty and 5% AIDC. However, the uploaded Gazette notifications explicitly mention only the 10% customs duty amendment.
Which tariff headings are linked to gold and silver under the revised framework?
Tariff heading 7106 relates to silver and tariff heading 7108 relates to gold.
Has platinum bullion duty also been increased to 10%?
No. The notifications specifically identify only gold and silver under the amended 10% framework. Platinum findings are separately mentioned at a customs duty rate of 5.4%.
What customs duty applies to gold and silver findings?
Gold findings and silver findings will attract 5% customs duty under the revised structure.
What is the duty on imports under tariff heading 7112?
Imports of spent catalysts or ash containing precious metals under tariff heading 7112 will continue to attract a concessional customs duty rate of 4.35%, subject to compliance conditions.
Why are these customs duty changes important for the jewellery industry?
The revisions are expected to impact bullion imports, jewellery manufacturing costs, domestic pricing, sourcing strategies, working capital requirements, and overall consumer demand across the gems and jewellery sector.
Source: SVAR Media Network
About SVAR Media Network – India’s Best Source for Jewellery News, Magazines, Newsletters and Media
SVAR Media Network is India’s No. 1 Destination for Jewellery News, setting the gold standard in timely, trusted, & trend-driven coverage across the Gems & Jewellery industry. As the Most Followed Jewellery Magazine & Media House in India, SVAR delivers Daily Jewellery News India Updates, market insights, & global developments through its platforms like Jewellery Magazine, Newsletters, AI Powered News Bulletins, Website, Social Media, Podcasts, & much more.
Recognized as Asia’s one of the Best Media in Jewellery & one of the World’s Best Jewellery Media, SVAR Media Network sets Unparalleled Standards in the Gems & Jewellery industry. SVAR is the Most Trusted & Widely Read Voice in the Gems & Jewellery Community.
Renowned as India’s Best Jewellery Magazine & Leading Jewellery Media, SVAR blends legacy with cutting-edge innovation by delivering:
- Best in class Jewellery Magazine for the Gems & Jewellery Industry & Jewellery Enthusiasts
- Real-time AI-Powered Jewellery News via SVARA AI, the World’s First AI Anchor in Fashion, Gems & Jewellery Industry
- India’s One of the First Gems & Jewellery Podcasts
- Digital Jewellery Newsletters for professionals and enthusiasts
- ISO 9001:2015 Certification, the first in the jewellery-media sector, proving our commitment to excellence
- Asia’s First & World’s Second Meta Verified Jewellery Media Brand
Ranked #1 among the Top 5 Gems & Jewellery News Websites, Top 10 Jewellery Magazines in India, & Most Influential Jewellery Media Brands, SVAR Media Network is your Trusted Source for Accurate, Fast, & Future-Focused Jewellery News.
SVAR Media Network is India’s No 1 Digital Media in Jewellery Industry & continues to be the Leading Jewellery Magazine & a Global Leader in Jewellery Media. SVAR Media Network offers a diverse range of services, including: Monthly Magazines, Digital Newsletters, Al-Driven News Bulletins, Social Media Promotions, Website Blogs & Articles, WhatsApp Updates, Podcasts & more…
Whether you seek updates on New Launches, Trade Shows, Celebrity Campaigns, Trends or Market Movements, SVAR is the Authority in Jewellery News India & beyond.
Explore the World of Gems & Jewellery with SVAR Media Network — Your Best Source for Trusted, Trend-Setting Jewellery News & Mediapp Updates, Podcasts & more…
