Centre Revises Customs Duty on Precious Metals; Puts 5% Duty on Gold, Silver, Platinum Findings

New Delhi: The Ministry of Finance updated the customs duty rates for various precious metals and jewelery finds, effective as of May 13. According to the revised calendar, a tax of 5 percent will be applied to gold and silver finds, and a tax of 5.4 percent will be applied to platinum finds. The notification also imposes a 4.35 percent tax on precious metal spent catalysts, subject to full compliance with specified compliance criteria. The notification provides a precise definition for items subject to these new rates to provide clarity in trading and taxation. “For the purposes of this entry, gold, silver or platinum finds means a small component such as a hook, clasp, clamp, pin, peg, screw, etc. used to hold all or part of a piece of jewelry in place,” the official notification reads. The statement was included.

For imports of spent catalysts or ashes containing precious metals, the lower rate of 4.35 percent is subject to strict end-use requirements. To be eligible for this rate, the importer must comply with the Customs (Concessional Duty Rate or Import of Goods for Specific End Use) Rules 2022. “Furthermore, the importer shall, at the time and place of customs clearance: – (a) give an undertaking to the Deputy Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, regarding the percentage of precious metals contained in the imported spent catalyst or Ash containing precious metals imported and that the said goods are imported for the recovery of precious metals,” the Ministry of Finance directive stated. The regulatory framework also requires environmental permits to be obtained for these specific imports. The Ministry has made it mandatory for importers to provide documentation proving that the materials were used for legitimate recycling or recovery purposes.

The document stated that the importer “presents a certificate from the Ministry of Environment, Forest and Climate Change, in the presence of the Deputy Commissioner of Customs or the Deputy Commissioner of Customs, authorizing the import of spent catalyst or Ash containing precious metal, as the case may be, for the purpose of recovery or recycling.”