CBIC raises gold tariff value to $1,500 per 10g, lifting jewellery import cost base
The Central Board of Indirect Taxes and Customs raised the tariff value of imported gold to $1,500 per 10 grams from $1,395, effective August 26. Tariff values for silver, edible oils, brass scrap and areca nuts were retained.
What happened
CBIC raised the tariff value for imported gold to $1,500 per 10 grams from $1,395, affecting jewellery import costs. Tariff values for silver, edible oils,
Key facts
- Gold tariff value: $1,500 per 10 grams, up from $1,395
- Silver tariff value: $2,097 per kg
- Crude palm oil: $1,208 per metric tonne
- RBD palm oil: $1,220 per metric tonne
- Crude palmolein: $1,227 per metric tonne
- RBD palmolein: $1,230 per metric tonne
- Crude soybean oil: $1,257 per metric tonne
- Brass scrap: $7,945 per metric tonne
- Areca nuts: $11,574 per metric tonne
- Effective August 26
Why this matters
For corporate development teams, the policy strengthens the strategic appeal of domestic sourcing, recycling networks and vertically integrated supply-chain targets that reduce gold-import dependence.
What to watch
- Movement in domestic gold prices versus international bullion prices and the INR/USD exchange rate.
- Whether the tariff-value increase changes customs-duty outgo materially after accounting for applicable duty rates and existing inventory.
- Festive-season footfall, wedding-jewellery bookings and average grams purchased per transaction.
- Changes in making charges, exchange offers, EMI schemes and gold-savings-plan enrolments at major chains.
- Gold import volumes, recycled-gold supply and any widening of the domestic premium over global prices.
- Jewellery chains are likely to recalibrate daily gold rates, making charges and promotional discounts rather than fully absorb the higher duty base.
- Retailers may increase emphasis on old-gold exchange, gold saving plans, lighter-weight collections and diamond/studded jewellery to defend ticket-size affordability.
- Manufacturers may seek faster inventory turns and reduce unhedged gold exposure as higher working-capital requirements increase financing costs.
- Organised chains could gain share if independent jewellers pass through costs more aggressively or face tighter liquidity.