The government has reduced duty drawback rates on exports of gold jewellery, silver jewellery and certain silver articles by up to 9%, lowering the refunds available to exporters under the revised schedule.
New Delhi, October 16 — The government has cut duty drawback rates on gold and silver jewellery exports, reducing the refund available to exporters on duties paid for imported inputs used in manufacturing export goods.
According to a Finance Ministry notification issued on Thursday, the duty drawback rate for gold jewellery has been reduced to ₹1,794.11 per gram from ₹1,851.99 per gram, a decline of about 3.1%.
For silver jewellery and certain silver articles, the drawback rate has been lowered to ₹26,859.02 per kg from ₹29,501.09 per kg, representing a reduction of around 9%.
Duty drawback is a mechanism under which exporters receive a refund of customs and excise duties paid on imported inputs used to manufacture goods that are subsequently exported.
The latest revision comes only a few months after the government sharply increased the rates in July to support jewellery exporters facing higher input costs and uncertainty in global markets.
In July, the duty drawback rate for gold jewellery and parts was increased to ₹1,851.99 per gram from ₹773.17 per gram. For silver jewellery and articles made of silver, the rate was raised to ₹29,501.09 per kg from ₹14,990.66 per kg.
The latest reduction therefore partially rolls back those increases.
IBJA Secretary Surendra Mehta said the correction was required because gold and silver prices had declined, lowering the actual import duty burden on these precious metals. Since the drawback is fixed in absolute rupee terms rather than as a percentage, changes in metal prices can create the need for periodic adjustments.
The move means exporters will now receive a lower refund on shipments of gold and silver jewellery. This could raise the effective cost of exporting such products, particularly for manufacturers operating on thin margins.
India is one of the world’s major jewellery manufacturing and export hubs, and changes in drawback rates can influence competitiveness in international markets.
The government may continue to revise these rates depending on movements in precious metal prices, import duties and other market conditions.
