Government Revises Duty Drawback Rates for Select Jewellery Tariff Items

The Government of India, through the Ministry of Finance (Department of Revenue), has notified amendments to the existing duty drawback schedule under Notification No. 21/2026–Customs (N.T.), dated 16 February 2026. The changes modify rates prescribed earlier under Notification No. 77/2023–Customs (N.T.), which governs refunds of customs and excise duties on exported goods.

The amendment specifically impacts Chapter 71 of the Schedule, dealing with jewellery and related articles. For tariff item 711301, the drawback rate in column (4) has been enhanced from 524.27 to 639.59. Tariff items 711302 and 711401 have seen a sharper upward revision, with rates increased from 6,317.22 to 9,089.33.

These revisions signal a significant policy push to recalibrate export incentives in the gems and jewellery sector, traditionally a high foreign exchange earner for India. By raising drawback amounts, the government appears to be aligning refunds more closely with prevailing input costs and duty incidence, thereby improving export competitiveness.

Legally, the amendments are issued under the Customs Act, 1962 read with the Central Excise Act, 1944 and the Drawback Rules, 2017, reaffirming the executive’s power to periodically revise fiscal incentives to reflect economic realities and trade priorities.