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Gold November 19, 2019 02:30:37 PM

Duty Drawback Rates on Gold, Silver Jewellery Exports Hiked

Paul Ploumis
ScrapMonster Author
The decision will contribute in making Indian exports of gold and silver jewellery more competitive in the international market.

Duty Drawback Rates on Gold, Silver Jewellery Exports Hiked

SEATTLE (Scrap Monster): The Indian government has hiked duty drawback rates for gold and silver jewellery effective November 16, 2019. The decision will contribute in making Indian exports of gold and silver jewellery more competitive in the international market.

As per notification issued by the Ministry of Finance, the drawback duty per gram of gold jewellery has now been raised from INR 272 to INR 372.9. Also, that of silver jewellery has been increased from INR 3,254 per kilogram to INR 4,332.20 per kilogram.

According to a Ministry official, the government’s decision to raise the rates would help in increasing the competitiveness of country’s gold and silver jewellery. It must be noted that the exporters in the country have been demanding for hike in drawback rates ever since the government raised duty on gold imports to 12.5%, as lower drawbacks were affecting their exports.

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Surendra Mehta, National Secretary, Indian Bullion and Jewellers Association (IBJA) observed that the decision will lift duty drawback from the earlier 63% of the duty amount to as high as 87%.

Incidentally, duty drawback rate is the rate at which exporters will be refunded for duties and taxes paid by them at the time of importation of inputs or raw materials. 

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