Summary: Central Government has introduced major customs amendments through Notifications No. 15/2026, 16/2026, 17/2026, and 18/2026-Customs dated 12th May 2026, significantly restructuring import duties for precious metals, jewelry findings, bullion, and manufacturing inputs. The revised framework standardizes the effective import duty on gold and silver bullion at 15% through coordinated changes in Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and Agriculture Infrastructure and Development Cess (AIDC). Notification 15/2026 harmonizes rates under Chapter 71 by fixing a 10% BCD on specified precious metal articles and reducing duties on jewelry findings to 5% for gold and silver components and 5.4% for platinum parts. Notification 16/2026 imposes a 35% effective rate on spent catalysts and ash containing precious metals. Notifications 17/2026 and 18/2026 amend concessional duty structures under Notification 57/2000-Customs and the India-UAE CEPA framework, revising tariff concession parameters and preferential import duty rates for bullion and related imports.
Here is a breakdown of the key compliance and strategic impacts for businesses in the gems, jewelry, and bullion sectors:
1. Bullion Tax Structure Standardized
- New Rate:The combined effective import duty on Gold and Silver Bullion now stands at 15%.
- Mechanism:This is achieved via synchronized changes across Basic Customs Duty (BCD), Social Welfare Surcharge (SWS), and the Agriculture Infrastructure and Development Cess(AIDC).
2. Chapter 71 Rate Harmonization (Notification 15/2026)
- Scope: Revisions apply to headings 7107, 7109, 7110, 7111, 7112, and 7118.
- Standard BCD: Set at 10% for specific precious metal articles, sweepings, and clad metals.
- Jewellery Findings: Adjusted to 5% for gold/silver findings and 5.4% for platinum components.
3. Manufacturing Inputs & Catalysts (Notification 16/2026)
- Refining Inputs: Spent catalysts and ash containing precious metals are now pinned to a combined effective rate of 35%.
4. Tariff Value Alignments (Notifications 17/2026 & 18/2026)
- Notification No. 17/2026-Customs directly amends the landmark principal Notification No. 57/2000-Customs, which regulates the concessional import duty frameworks for gold, silver, and platinum. It increases the base concessional customs duty rate under Serial No. 1 of the principal notification from 35% up to 10% wherever applicable. This amendment acts as the legal trigger to push the overall effective import tax on gold and silver bullion up to 15% (when combined with the newly structured AIDC and SWS cesses).
- Notification No. 18/2026-Customs directly amends the landmark principal Notification No. 22/2022-Customs to revise the preferential import duty rates and tariff quota concessions granted under the India-UAE Comprehensive Economic Partnership Agreement (CEPA). It modifies the tariff concession parameters specifically listed under Serial No. 12 (Table III) of the original India-UAE trade pact notification. The government substituted the existing parameters with a designated entry of “10” in Column 5 and “4” in Column 6.
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