The Centre has revised customs duty rates on precious metals and jewellery findings, with the new rates coming into effect from May 13, according to a notification issued by the Ministry of Finance.
Under the revised structure, import duty on gold and silver has been increased from 6 per cent to 15 per cent, while duty on platinum has been raised from 6.4 per cent to 15.4 per cent. Consequential changes have also been made in the duty structure applicable to gold and silver dore, coins, findings and other related items.
The Ministry said gold and silver findings will now attract a customs duty of 5 per cent, while platinum findings will be subject to a duty of 5.4 per cent.
The notification defined jewellery findings as “small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place.”
For imports of spent catalysts or ash containing precious metals, the notification prescribed a concessional customs duty rate of 4.35 per cent, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
The Ministry said importers seeking to avail the concessional rate must provide an undertaking to customs authorities regarding the percentage of precious metals contained in the imported material and confirm that the goods are meant for recovery of precious metals.
Importers will also be required to submit a certificate issued by the Ministry of Environment, Forest and Climate Change permitting the import of spent catalyst or ash containing precious metals for recovery or recycling purposes.
The government said the revision in customs duty has been undertaken as a policy measure aimed at safeguarding macroeconomic stability, conserving foreign exchange reserves and moderating non-essential imports amid heightened global uncertainty arising from the ongoing West Asia crisis.
According to the government, volatility in global crude oil markets and international shipping routes has increased concerns over import costs and supply-side disruptions. As India is a major importer of crude oil, higher energy prices could place pressure on inflation and widen the Current Account Deficit (CAD).
The government said foreign exchange resources need to be prioritised for essential imports such as crude oil, fertilisers, industrial raw materials, defence equipment, critical technologies and capital goods, which support economic activity and national security.
It noted that imports of precious metals are largely consumption and investment driven. In periods of external uncertainty and commodity market volatility, moderation of discretionary imports can help maintain macroeconomic stability and support prudent external sector management.
The Ministry added that the increase in customs duty is intended to moderate avoidable import demand and reduce pressure on the external account, while also reflecting a proactive and measured policy response to emerging global risks.
-ANI
