The government has revised cess and surcharge rates on import of precious metals and jewellery items from May 13.The Union Finance Ministry on Tuesday amended import duty rules for precious metals and jewellery-related items through an official Gazette notification. The notification makes targeted amendments to two existing customs notifications — one from 2018 and one from 2021 — and covers items ranging from gold, silver and platinum to jewellery parts and recycled precious metal waste.What has actually changedThe notification does not change the basic import tax (basic customs duty) on gold or silver. What it changes are two additional levies that are charged on top of the basic duty:Social Welfare Surcharge (SWS) — A surcharge on customs duty that goes toward social welfare schemes. The 2018 notification being amended deals with exemptions from this surcharge.Agriculture Infrastructure and Development Cess (AIDC) — A cess introduced in 2021 to fund agricultural infrastructure. The 2021 notification being amended deals with the rates of this cess on precious metals.So the rates of 4.35 per cent, 5 per cent, and 5.4 per cent mentioned in the notification are AIDC cess rates, not the basic customs duty on gold or silver itself.What items are covered and what are the new rates?Here is a plain-language breakdown of the key items and their new AIDC cess rates:Spent Catalyst or Ash Containing Precious Metals (HS Code 7112) — This is industrial waste — from factories and refineries — that still contains recoverable gold, silver or platinum. Importers who bring this in for recycling and metal recovery will pay 4.35 per cent AIDC cess, but only if they fulfil two conditions: they must give a written undertaking to customs about the percentage of precious metals in the material, and they must produce a certificate from the Ministry of Environment, Forest and Climate Change allowing the import for recycling purposes.All other goods under HS Code 7112 that do not meet these recycling conditions will attract 5 per cent AIDC cess.Jewellery Findings (HS Code 7113) — A “finding” is the small hardware component that holds jewellery together — hooks, clasps, clamps, pins, catches, and screw backs. The notification formally defines this term and sets separate AIDC cess rates: 5 per cent for gold findings, 5% for silver findings, and 5.4 per cent for platinum findings.Coins (HS Code 7118) — All goods classified as coins under this heading will attract 5 per cent AIDC cess.Base Metals Clad with Silver (HS Code 7107) — Items such as base metals that have been coated or clad with silver will attract 5 per cent AIDC cess.Base Metals or Silver Clad with Gold (HS Code 7109) — Base metal or silver items plated or clad with gold will attract 5 per cent AIDC cess.Base Metals, Silver or Gold Clad with Platinum (HS Code 7111) — Items clad with platinum will attract 5.4 per cent AIDC cess.Gold and Silver (HS Codes 7106 and 7108) under the 2000 exemption scheme — Gold and silver imported under the old exemption notification No. 57/2000-Customs will continue to attract 4.35 per cent AIDC cess.All Other Precious Metal Goods Exempt Under the 2000 Notification — Any other precious metal goods (under Chapter 71) that claim and receive exemption from basic customs duty under the 2000 notification, but do not fall in the gold/silver category above, will attract Nil (zero) AIDC cess.Changes to the Social Welfare Surcharge Exemption (2018 Notification)The amendment to the 2018 notification expands the list of precious metal items that are exempt from Social Welfare Surcharge. Earlier, the exemption at Sl. No. 1 covered only HS Code 7108 (gold). It now also covers 7107, 7109, 7111, and 7112 — bringing clad metals and precious metal scrap under the surcharge exemption umbrella.Why this mattersThe changes have significance for the jewellery and precious metals industry. Jewellery manufacturers who import small components like clasps and hooks will now have a formally defined, legally clear tax category for “findings” — something that was previously a grey area causing disputes at customs.Recycling businesses that import spent catalysts and precious metal ash for recovery will get concessional rates, provided they comply with environmental regulations — encouraging responsible and regulated recycling.Importers of clad metals — base metals coated with silver, gold, or platinum — will now have clear cess rates, reducing ambiguity at the time of customs clearance.Investors and traders dealing in coins will benefit from a uniform 5 per cent cess rate under a now clearly defined entry.