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Govt. Raises Jewellery Drawback Rates to Offset Rising Precious Metal Costs

Revised Rates Under Chapter 71 Aim to Boost Export Margins and Ease Working Capital Pressures Amid Soaring Gold and Silver Prices

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The Government of India has revised duty drawback rates for specific jewellery tariff items under Chapter 71 through Notification No. 21/2026–Customs (N.T.), dated 16 February 2026, issued by the Ministry of Finance (Department of Revenue). The move is expected to enhance exporters’ cost recovery, improve margins, and strengthen global price competitiveness for Indian jewellery shipments amid record-high gold, silver and platinum prices that have increased working capital pressures for manufacturers.

The amendment updates the schedule of Notification No. 77/2023–Customs (N.T.). For tariff item 711301, the drawback rate has been increased from 524.27 to 639.59. For tariff items 711302 and 711401, the rate has been raised from 6,317.22 to 9,089.33.

GJEPC has represented this issue in meetings with officials from the Department of Commerce as well as NITI Aayog, stressing the need to revise drawback rates in line with rising input costs faced by exporters and enhance ease of doing business.

The higher drawback amounts are also likely to support exporters’ cash flow by returning a larger portion of duties paid on inputs after export realisation, which is particularly beneficial for MSMEs. 

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National News

GJEPC & Mumbai Customs Host Session on Hand-Carried Jewellery Exports

Industry, Customs Officials Outline Procedures, Compliance Norms and Budget 2026–27 Measures to Streamline High-Value Shipments from Mumbai Airport

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GJEPC, in association with Bharat Diamond Bourse (BDB) and Mumbai Customs, conducted a focused session on Hand-Carried Jewellery Exports from Mumbai Airport at BDB on 17 February. The session provided practical guidance on procedures for carrying high-value jewellery consignments, documentation requirements, and compliance protocols. It also included a briefing on key Budget 2026-27 provisions for the gem and jewellery sector. The event was graced by  Ashish Borda, Convener – PMBD, GJEPC, who welcomed the guest speakers.

In his keynote address, Harsh Singh, Additional Commissioner of Customs, Precious Cargo Customs Clearance Centre (PCCCC), presented an overview of Budget 2026–27 announcements relevant to the gem and jewellery sector. He highlighted policy measures aimed at reducing trade friction, lowering entry barriers for exporters, and enabling companies, particularly MSMEs, to access global markets more efficiently. He also noted that improving sentiment and leveraging new trade opportunities would be important after a challenging year.

Explaining the operational framework, Inderveer Singh, Deputy Commissioner (Imports), PCCCC, explained that the hand carriage facility enables passengers to carry jewellery consignments in personal baggage under Customs supervision, supported by secure storage, sealing, and escorted movement at the airport. He clarified that documentation requirements remain largely aligned with regular filings, with specific passenger and flight details added, and emphasised that clearance timelines are being kept minimal, with a target of completing processes within about 24 hours to avoid trade disruption.

Also present on the occasion was Jayesh Jadhav, Assistant Commissioner, PCCCC. GJEPC has been instrumental in initiating and operationalising the hand-carriage jewellery export facility in Mumbai through sustained engagement with Customs authorities, aimed at enabling faster, cost-efficient shipments for exporters. GJEPC together with Mumbai Customs had inaugurated the Jewellery Hand Carriage Facilitation Centre at Mumbai Airport – Terminal 2, in July 2025.

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