Tax, GST & International Trade Blog

In a significant policy move under the Customs Act, 1962 and Central Excise Act, 1944, the Government has revised duty drawback rates applicable to Chapter 71 (Jewelry) through an amendment to Notification No. 77/2023-Customs (N.T.) dated 20th October 2023.

Issued in exercise of powers under Section 75 of the Customs Act and read with Rules 3 and 4 of the Customs and Central Excise Duties Drawback Rules, 2017, the amendment revises rates for key tariff items under Tariff 7113 and related headings.

For jewelry exporters in India, this is not a routine revision. It is a direct liquidity enhancer.

What Has Changed? (Chapter 71 – Tariff 7113 & 7114)

The amendment revises drawback rates in Column (4) of the Schedule for the following tariff items:

• 711301
• 711302
• 711401

These items broadly cover articles of jewelry and related precious metal products under Tariff 7113 and 7114 classifications.

Data Breakdown: Old vs New Drawback Rates

The revision reflects:

• A ~22% increase for tariff item 711301 (primarily gold jewelry category).
• A ~44% increase for tariff items 711302 and 711401 (primarily silver jewelry categories).

Why This Matters for Jewelry Exporters

1.Immediate Liquidity Enhancement

Under the Duty Drawback mechanism, exporters are refunded duties paid on imported inputs used in exported goods. Higher drawback rates mean:

• Faster working capital recovery
• Improved cash flow cycles
• Reduced export financing pressure

For silver exporters, the jump from 6317.22 to 9089.33 is particularly substantial. This is not marginal –  it materially impacts per-shipment realizations.

2.Improved Profit Margins

In a competitive global jewelry market, margins are sensitive to:

• Precious metal price volatility
• Exchange rate movements
• Freight & compliance costs

Higher drawback rates under Tariff 7113 directly enhance net export profitability, especially for bulk exporters.

3.Stronger Positioning in Jewelry Export India

India remains one of the largest exporters of gold and silver jewelry globally. This amendment strengthens the competitiveness of Jewelry Export India by aligning drawback rates more realistically with input duty structures.

Exporters who accurately compute and claim these revised rates gain a measurable pricing advantage.

Regulatory Context

This amendment modifies the principal Notification No. 77/2023-Customs (N.T.) dated 20th October 2023, originally published via G.S.R. 792(E).

The notification was last amended by Notification No. 67/2025-Customs (N.T.) dated 27th October 2025 before this revision.

The revision has been issued under:

• Section 75 of the Customs Act 1962
• Section 37(2) of the Central Excise Act
• Rules 3 & 4 of the Duty Drawback Rules 2017

Strategic Impact for Logistics Managers & Fintech Partners

For Logistics Managers

• Recalibrate shipment costing models
• Rework export pricing strategies
• Align documentation with revised rates

For Fintech & Trade Finance Partners

• Reassess invoice discounting models
• Adjust export receivable projections
• Factor revised drawback inflows into credit assessment

This amendment directly affects export-linked working capital products.

How Preface Venture Helps You Capitalize

Regulatory shifts create opportunity — but only for those who interpret and implement them correctly.

At Preface Venture Private Limited, we assist jewelry exporters in:

• Accurate drawback classification under Tariff 7113
• Documentation validation under the Duty Drawback Rules 2017
• Risk mitigation in customs filings
• Working capital optimization linked to export refunds
• Strategic advisory for long-term export compliance

With structured compliance frameworks and sector-focused expertise, we ensure exporters do not underclaim or misclassify under revised schedules.

Implementation Note

Exporters must ensure that:

• Shipping Bills reflect correct tariff classification
• Claims align with revised Schedule rates
• Internal ERP systems are updated
• Past shipments (if eligible within permissible timelines) are reviewed

Failure to update internal systems may result in revenue leakage.

Conclusion

The revised drawback rates under Chapter 71 mark a clear policy signal — strengthening India’s jewelry export competitiveness through improved duty neutralization.

The increase from 524.27 to 639.59 (gold category) and from 6317.22 to 9089.33 (silver category) represents a measurable boost in liquidity, profitability, and export resilience.

For exporters, the question is no longer whether the rates have increased
It is whether your business is fully optimizing the benefit.

If you are engaged in Jewelry Export India operations under Tariff 7113, now is the time to reassess your drawback strategy.

Connect with Preface Venture to ensure every eligible rupee under the Customs Act 1962 is rightfully claimed.

Notification Reference:  CBIC
Notification No:21/2026-Customs (N.T)
16-Feb-2026