In a major policy move affecting the bullion, jewellery and precious metals sector, the Ministry of Finance has announced a series of customs duty revisions on imports of precious metals, jewellery inputs, scrap, residues and findings. The changes were notified by the Department of Revenue through Notifications No. 15/2026-Customs, 16/2026-Customs and 17/2026-Customs issued on May 12, 2026.

The revised duty structure will come into force from May 13, 2026.

The amendments significantly increase customs duty on several categories of precious metal imports from 5% or 4.35% to as high as 10%, while also introducing concessional rates for recycling-oriented imports such as spent catalyst and ash containing precious metals.

Industry experts believe the move is aimed at controlling imports, encouraging domestic value addition, boosting recycling of precious metals, and rationalising the tariff structure for bullion and jewellery-related products.

Major Highlights of the Notifications

Duty Increased From 5% to 10%

Under Notification No. 15/2026-Customs, the government amended earlier customs notification No. 45/2025-Customs issued in October 2025.

The notification raises customs duty from 5% to 10% for several entries listed under serial numbers 192 to 197 and 203.

The changes apply to multiple tariff headings linked to precious metals and related goods.

Categories Impacted

The notification also inserts a new Serial No. 200A specifically covering:

“Spent catalyst or ash containing precious metals”

This category will attract a 10% customs duty.

However, the government has clarified that this special provision will remain valid only till March 31, 2027.

Concessional Duty for Recycling Industry

Notification No. 16/2026-Customs introduces a separate concessional framework for imports used in precious metal recovery and recycling.

The government has created a concessional entry under tariff heading 7112 for:

• Spent catalyst
• Ash containing precious metals

These materials are commonly imported by refiners and recycling units for extraction and recovery of gold, silver, platinum and other precious metals.

Concessional Duty Structure

Conditions for Concessional Duty

The concessional 4.35% duty will only be available if importers comply with strict procedural conditions.

Mandatory Requirements

Importers must:

1. Follow Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
2. Submit an undertaking to customs authorities regarding the percentage of precious metals present in the imported material.
3. Declare that the imported material is meant for recovery or recycling purposes.
4. Obtain certification from the Ministry of Environment, Forest and Climate Change.

The certificate must be produced before the Deputy Commissioner or Assistant Commissioner of Customs at the time of clearance.

Officials say these safeguards are intended to ensure that concessional imports are used only for genuine recycling activities.

Changes in Jewellery Findings Duty

The government has also revised duty rates on jewellery findings under tariff heading 7113.

Jewellery findings are small components such as hooks, clasps, pins, catches and screw backs used in jewellery manufacturing.

Revised Duty on Findings

The notification defines findings as small jewellery components used to hold the whole or part of a jewellery piece in place.

New Entries Introduced

The revised notification inserts several new tariff entries.

Newly Added Categories

The government has also retained nil customs duty benefits for some goods claiming exemption under Notification No. 57/2000-Customs, except those specifically covered under revised entries.

Existing 4.35% Duty Replaced With 10%

Notification No. 17/2026-Customs makes another significant change.

The government has amended Notification No. 57/2000-Customs dated May 8, 2000.

Under the amendment:

The revised 10% duty will apply wherever the earlier concessional rate of 4.35% existed under Serial No. 1 of the notification.

Impact on Bullion and Jewellery Sector

The latest customs changes are expected to have a major impact on:

• Bullion importers
• Jewellery manufacturers
• Precious metal recyclers
• Refining units
• Export-oriented jewellery businesses

Likely Effects

Higher Import Cost

The increase from 5% to 10% may raise landed costs of several precious metal products and raw materials.

Push for Domestic Recycling

By offering concessional rates specifically for recycling-oriented imports, the government appears to be encouraging domestic recovery of precious metals from industrial residues and scrap.

Impact on Jewellery Prices

Higher customs duties may increase production costs for jewellery manufacturers, especially those dependent on imported inputs.

Better Regulation

The tighter compliance conditions may help authorities monitor precious metal imports more effectively and prevent misuse of concessional duty provisions.

Government’s Policy Direction

The notifications indicate that the Centre is attempting to balance three objectives:

1. Reduce dependence on direct precious metal imports
2. Encourage recycling and circular economy practices
3. Protect revenue through rationalised customs structures

The move comes at a time when India continues to remain one of the world’s largest importers of gold and precious metals.

Officials believe the revised framework will strengthen regulatory oversight while promoting environmentally compliant recycling activities within the country.

All three notifications were issued under powers granted by the Customs Act, 1962 and the Customs Tariff Act, 1975.