Customs Notification No. 16/2026: Revised SWS and AIDC Rates on Precious Metal Imports Effective 13 May 2026
Overview of the Amendment
The Ministry of Finance (Department of Revenue) has issued Notification No. 16/2026-Customs dated 12th May, 2026, bringing into effect targeted revisions to two foundational customs notifications — Notification No. 11/2018-Customs and Notification No. 11/2021-Customs. The primary objective of this amendment is to restructure the Social Welfare Surcharge (SWS) and Agriculture Infrastructure and Development Cess (AIDC) framework applicable to imports of precious metals, precious metal alloys, jewellery findings, spent catalysts, and related goods. The revised notification came into force on 13th May, 2026.
These amendments carry significant implications for importers dealing in gold, silver, platinum, and associated materials, as both the scope of coverage and the applicable cess rates have undergone meaningful changes.
Legal Authority and Statutory Basis
The Central Government exercised its powers under:
- Sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962)
- Section 110 of the Finance Act, 2018 (13 of 2018)
- Section 124 of the Finance Act, 2021 (13 of 2021)
The notification was issued in public interest and bears reference [F. No. 354/04/2026-TRU], signed by DHEERAJ SHARMA, Under Secretary.
Part I: Amendments to Notification No. 11/2018-Customs (Social Welfare Surcharge)
Notification No. 11/2018-Customs, originally published on 2nd February, 2018 vide G.S.R. 114(E), governs the Social Welfare Surcharge on specified imported goods. The following three modifications have been made to the TABLE within this notification:
1. Expansion of Tariff Headings at Sl. No. 1
The earlier text at Sl. No. 1, Column (2) referenced only tariff heading 7108. This has now been replaced with a broader set of headings:
7107, 7108, 7109, 7111, 7112
This expansion signals that the SWS concession framework will now extend to a wider range of precious metal products beyond gold alone, covering base metals clad with gold (7107), platinum and platinum group metals (7111), and waste and scrap of precious metals (7112), among others.
2. Omission of Sl. No. 54A
Sl. No. 54A and all corresponding entries in the TABLE have been deleted entirely. This omission rationalises the notification by removing a category that is no longer required under the revised framework.
3. Substitution of Sl. No. 56A
The earlier entry at Sl. No. 56A has been replaced with the following revised entry:
| Sl. No. | Description |
|---|---|
| 56A | All goods falling under heading 7118 |
This revised entry ensures that all goods classified under heading 7118 (coins) are uniformly brought within the SWS regime without sub-categorisation.