Duty Drawback Rates for Gold & Silver Jewellery Exports Double — Notification 64/2026
Effective July 16, 2026, the Central Board of Indirect Taxes and Customs (CBIC) has nearly doubled All Industry Rates (AIR) for duty drawback on gold and silver jewellery exports under Notification 64/2026-Customs (N.T.). A mid-size exporter shipping 500 grams of gold jewellery per consignment now recovers an additional ₹5.4 lakh in annual cash flow.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Section 75 of the Customs Act, 1962 read with the Customs and Central Excise Duties Drawback Rules, 2017 — Effective: July 16, 2026. Source: https://www.cbic.gov.in/entities/customs-notifications. Last reviewed by CA Harun Raaj: August 2026.
Effective July 16, 2026, the Ministry of Finance, through CBIC Notification No. 64/2026-Customs (N.T.), has nearly doubled the All Industry Rates (AIR) of duty drawback-export) for gold and silver jewellery exports. For a mid-size jewellery exporter shipping 500 grams of gold jewellery per consignment, this means an additional ₹5.39 lakh in cash per shipment — or ₹64.7 lakh a year. This is one of the most significant boosts to jewellery exporter cash flows in recent memory.
What Changed
CBIC revised the AIR duty drawback schedule under Chapter 71 of the Customs Tariff Act, 1975:
| Tariff Item | Description | Old Rate (₹/gram) | New Rate (₹/gram) | Increase |
|---|---|---|---|---|
| 7113 01 | Gold jewellery (other than studded) | ₹773.17 | ₹1,851.99 | +139% |
| 7113 02 | Silver jewellery (other than studded) | ₹14,990.66 | ₹29,501.09 | +97% |
| 7114 01 | Articles of silversmiths' wares (other than studded) | ₹14,990.66 | ₹29,501.09 | +97% |
Key point: These rates apply only to non-studded jewellery; studded items fall under different tariff classifications with separate AIR drawback rates.
What Is Duty Drawback?
Duty drawback is a refund of customs duties — specifically Basic Customs Duty (BCD) and Agriculture Infrastructure and Development Cess (AIDC) — paid on imported inputs used in the manufacture of exported goods. It is governed by Section 75 of the Customs Act, 1962.
For jewellery exporters, the imported input is typically gold or silver in bar or doré form. The AIR mechanism pre-computes a refund rate per gram of finished jewellery exported — so you do not need to prove the exact duty paid on each import lot. The rate accounts for average input ratios and duty incidence across the industry.
Who Is Eligible?
Jewellery exporters exporting:
- Gold jewellery under tariff item 7113 01 (other than studded with diamonds or precious stones)
- Silver jewellery under tariff item 7113 02 (other than studded)
- Silver articles (goldsmiths'/silversmiths' wares) under tariff item 7114 01 (other than studded)
To claim AIR duty drawback, the exporter must:
- Have an active IEC (Importer Exporter Code) registered at DGFT
- Maintain a bank account registered on ICEGATE for drawback credit transfer
- File the Shipping Bill with a drawback declaration at the time of export
- Not claim double benefit — if RoDTEP (Remission of Duties or Taxes on Exported Products) is claimed on the same export, verify there is no overlap with the duties covered by drawback
- File the claim within 3 months of the Let Export Order (LEO) date — extendable on sufficient cause shown to the Commissioner of Customs under Rule 13 of the Drawback Rules, 2017
How to Claim — Step by Step
- File Shipping Bill on ICEGATE with drawback declaration — select the correct tariff item (7113 01, 7113 02, or 7114 01)
- Let Export Order (LEO) — Customs issues LEO once goods are examined and cleared for export
- Export General Manifest (EGM) — filed by the carrier after departure
- ICEGATE drawback credit — post-EGM, ICEGATE auto-processes the drawback claim and credits to your registered bank account. Typical turnaround: 3–7 working days
Illustrative Example
Illustrative example — not an actual transaction
Sharma Jewels, a Hyderabad-based gold jewellery manufacturer, exports 500 grams of 22-karat gold necklaces (tariff item 7113 01) in a single shipment valued at ₹28 lakh.
- Old drawback: 500g × ₹773.17 = ₹3,86,585
- New drawback (post Notification 64/2026-Customs N.T.): 500g × ₹1,851.99 = ₹9,25,995
- Additional cash per shipment: ₹5,39,410
Over 12 such shipments in a year, the additional working capital recovered through drawback = ₹64.7 lakh.
Why This Matters for Your Business
The doubling of drawback rates significantly improves export working capital. For manufacturers relying on imported precious metals, this notification reduces the effective cost of importing raw gold and silver, making Indian jewellery more price-competitive globally without eroding margins. Exporters should review all outstanding Shipping Bills filed before July 16, 2026 to confirm they are claimed under the old rates — post-July 16 exports must use the new rates. Verify HS classification accuracy; misclassification invites customs demand and penalty.
If your business exports gold or silver jewellery, consult your customs broker or Chartered Accountant to model the cash-flow impact and ensure compliance with the 3-month LEO filing deadline.
I'm CA Harun Raaj, Visakhapatnam. If you export jewellery and want to quantify the impact of Notification 64/2026 on your drawback claim, reach out.
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See Also
Frequently Asked Questions
Does the new drawback rate apply to diamond-studded gold jewellery?+
No. Tariff item 7113 01 covers gold jewellery 'other than studded.' Studded jewellery (with diamonds, rubies, emeralds, or other precious stones) falls under a separate tariff classification with different AIR drawback rates. Misclassification invites a customs drawback demand notice. Verify your HS classification with your customs broker before filing the Shipping Bill.
Can I claim both RoDTEP and duty drawback on the same gold jewellery export?+
Not for the same duty component. Drawback compensates for BCD and AIDC on imported gold/silver inputs; RoDTEP covers embedded taxes not refunded by other mechanisms. Most gold jewellery exporters find drawback superior given the new rate increase. Your Chartered Accountant should model which scheme gives the higher net benefit for your shipments.
What is the time limit to file a drawback claim after export?+
The claim must be filed within 3 months of the Let Export Order (LEO) date under Rule 13 of the Customs and Central Excise Duties Drawback Rules, 2017. This deadline is extendable by the Commissioner of Customs on sufficient cause shown. Claims filed after 3 months are rejected.
Do the new Notification 64/2026 rates apply to shipments exported before July 16, 2026?+
No. Notification 64/2026-Customs (N.T.) is effective from July 16, 2026 onwards. Exports made before this date are governed by the old rates — even if the Shipping Bill drawback claim was not yet settled or credited on ICEGATE.
What documents do I need to file for duty drawback on Shipping Bill?+
File the Shipping Bill on ICEGATE with a drawback declaration, selecting the correct tariff item (7113 01 for gold, 7113 02 or 7114 01 for silver). You must have an active IEC and a registered bank account on ICEGATE. Once Let Export Order (LEO) is issued and the Export General Manifest (EGM) is filed by the carrier, ICEGATE auto-processes the claim and credits the drawback amount, typically within 3–7 working days.
Is there a minimum export quantity to qualify for duty drawback?+
Notification 64/2026 does not specify a minimum quantity. Drawback is available to any exporter with a valid IEC exporting under the eligible tariff items (7113 01, 7113 02, 7114 01). Consult your customs broker to confirm no other operational thresholds apply at your port of export.
How is the new drawback rate per gram calculated — is it fixed or variable?+
The new rate is an All Industry Rate (AIR) — a pre-computed fixed rate per gram of finished jewellery exported. It is set by CBIC under Section 75 of the Customs Act, 1962 and accounts for average duty incidence and input ratios across the industry. You do not need to prove actual duty paid on each import; the AIR mechanism is automatic and applies uniformly to all eligible exporters.
Can I amend or correct a Shipping Bill drawback declaration after it is filed?+
Amendment rules for Shipping Bills and drawback declarations are governed by Customs procedures on ICEGATE. Once a Shipping Bill is filed and LEO is issued, corrections are restricted. Consult your customs broker or Chartered Accountant immediately if an error is discovered to understand your options within the regulatory framework.
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