Explore the recent decision by the Finance Ministry to increase import duties on gold, silver findings, and precious metal coins to 15%. Learn about the key components, exemptions, and effective dates of this duty hike.
India Adjusts Import Duties on Precious Metals: Hiked To 15%
In a significant move, the Finance Ministry of India has raised the import duties on specific precious metal items, impacting gold, silver findings, coins, and spent catalysts. Here’s an overview of the recent changes and their implications.
Gold and Silver Findings: A 15% Levy
The Finance Ministry has implemented a 15% import duty on gold and silver findings, including coins of precious metals. This marks an increase from the previous 10%. The new structure comprises a Basic Custom Duty (BCD) of 10% and an additional 5% of Agriculture Infrastructure Development Cess (AIDC). Notably, this does not include the application of Social Welfare Surcharge (SWC).
Definition of Findings
Gold or silver findings encompass small components like hooks, pins, or screws, crucial in holding together a piece of jewelry. The revised duty structure aims to regulate the import of these essential elements.
Spent Catalysts: Duty Hiked to 14.35%
The Finance Ministry has also elevated the import duty on spent catalysts containing precious metals to 14.35%. This comprises a Basic Custom Duty (BCD) of 10% and an AIDC of 4.35%. Similar to gold and silver findings, this duty structure benefits from an exemption from Social Welfare Surcharge (SWS).
Effective Date
These new duty rates came into effect on January 22, as per the official notification. Importers and stakeholders need to take immediate note of the adjustments.
India’s decision to modify import duties on these precious metal components reflects ongoing efforts to regulate trade and foster domestic economic development. The impact on various industries, especially jewelry and catalyst manufacturing, will be closely monitored in the coming months.
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