CBIC revises AIR of Duty Drawback of Gold and Silver Jewellery/Articles, Reduces to Half [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has revised the AIR (All Industry Rates ) of Duty Drawback of Gold and Silver Jewellery/Articles. The rate has been reduced into half of the previous rates.

The board vide notification no. 55/2024 – Customs (N.T.) dated 23rd August 2024 has amended the notification No. 77/2023-Customs (N.T.), dated the 20th October, 2023.

Ready to Grow? Choose a Course That Fits Your Goals!

The amendments primarily focus on adjustments to the drawback rates specified in the Schedule of the earlier notification, particularly within Chapter 71. The revised rates are as follows:

1. Tariff Item 711301 : This tariff item consists of articles of jewellery and parts thereof, made of gold. The drawback rate, previously listed as 704.1, has now been adjusted to 335.50.
2. Tariff Item 711302: This tariff item consists of articles of jewellery and parts thereof, made of silver. The previous rate of 8949 has been substituted with a new rate of 4468.10.
3. Tariff Item 711401: This  tariff item consists of articles made of silver. Similarly, the rate of 8949 has been replaced with 4468.10.

The purpose of duty drawback is to refund exporters for the customs duties paid on imported inputs used in the production of goods for export. The purpose is to prevent domestic taxes from affecting the competitiveness of these exported goods.

Ready to Grow? Choose a Course That Fits Your Goals!

In the 2024 Budget presented on July 23, the Union Finance Minister proposed a reduction in customs duty on gold and silver to 6%. Additionally, she announced a reduction in the customs duty on platinum to 6.4%.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates