The Central Government has issued a series of Customs Notifications dated May 12, 2026 revising the duty structure on import of gold, silver, platinum and other precious metal products falling under Chapter 71 of the Customs Tariff. The changes, effective from May 13, 2026, aim to rationalise import duties, revise Social Welfare Surcharge (SWS) and Agriculture Infrastructure and Development Cess (AIDC), and curb non-essential imports to support the country’s foreign exchange reserves and current account position.

The revised duty framework increases the effective import burden on several precious metals and jewellery components, including gold and silver, by enhancing the Basic Customs Duty (BCD), modifying AIDC rates and restructuring exemption entries under existing customs notifications.

[I] Notification No. 15/2026-Customs: Amendment to Notification No. 45/2025-Customs

Through Notification No. 15/2026-Customs dated May 12, 2026, the Government has amended Notification No. 45/2025-Customs and revised customs duty rates applicable to various tariff items under Chapter 71 relating to precious metals and articles thereof. The notification substitutes the earlier concessional rate of 5% with 10% for multiple tariff entries, including tariff headings 7107, 7109, 7110, 7111, 7112 and 7118.

The amendment also inserts a new entry for “spent catalyst or ash containing precious metals” under tariff heading 7112, attracting a 10% customs duty, valid up to March 31, 2027.

Further, all goods under specified precious metal tariff lines, except those covered under the newly inserted entry, will now attract 10% customs duty, replacing the earlier 5% rate. The notification comes into force from May 13, 2026.

[II] Notification No. 16/2026-Customs: Changes in Social Welfare Surcharge (SWS) and AIDC

Vide Notification No. 16/2026-Customs dated May 12, 2026, the Government has amended Notification Nos. 11/2018-Customs and 11/2021-Customs to revise the levy of Social Welfare Surcharge and Agriculture Infrastructure and Development Cess (AIDC) on imports of precious metals and related products.

The revised AIDC rates notified include:

5.4% on specified platinum findings and tariff heading 7111 goods;
5% on gold findings, silver findings, coin imports and specified Chapter 71 products;
4.35% on imports of gold and silver covered under Notification No. 57/2000-Customs.

The notification also restructures exemption entries relating to tariff heading 7112 covering spent catalyst or ash containing precious metals imported for recovery or recycling purposes, subject to compliance with Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 and certification requirements from the Ministry of Environment, Forest and Climate Change.

In addition, new tariff entries have been inserted for headings 7107, 7109 and 7111 with revised cess rates, while certain earlier exemption entries have been omitted. The amendments will take effect from May 13, 2026.

[III] Notification No. 17/2026-Customs: Amendment to Notification No. 57/2000-Customs

Notification No. 17/2026-Customs dated May 12, 2026 further amends Notification No. 57/2000-Customs, which governs concessional import duty schemes for gold, silver and platinum imports.

Under the amendment, the applicable customs duty rate under Sl. No. 1 of the notification has been increased from 4.35% to 10% wherever applicable. The revised rate will become effective from May 13, 2026.

[IV] Notification No. 18/2026-Customs: Amendment to UAE CEPA Notification

The Government has also issued Notification No. 18/2026-Customs amending Notification No. 22/2022-Customs relating to the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

The amendment revises the preferential tariff entries under Table III, Sl. No. 12, by substituting the rate in column (5) with “10” and in column (6) with “4”, thereby modifying the concessional import framework applicable under the UAE CEPA arrangement for specified precious metal imports. The changes shall also take effect from May 13, 2026.

Effective Import Duty on Gold and Silver Increased to 15%

Following the combined impact of the revised Basic Customs Duty and AIDC structure, the effective import duty on gold and silver has increased to approximately 15%, comprising:

10% Basic Customs Duty (BCD); and
5% Agriculture Infrastructure and Development Cess (AIDC).

The Government stated that the revised duty structure is intended to discourage excessive imports of precious metals, reduce pressure on foreign exchange reserves, narrow the trade deficit and support the Indian rupee.

Industry stakeholders, however, have expressed concerns that higher import duties may adversely impact demand and could potentially encourage unofficial trade channels and smuggling activities, particularly amid elevated global bullion prices and increased investment demand for gold-backed financial products.

The revised customs framework marks a significant policy shift in India’s precious metals import regime and is expected to have wide-ranging implications for bullion traders, jewellers, importers and the domestic precious metals market.

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