US Customs Duty on Indian Jewelry
India is the world's largest diamond cutting and polishing center — Surat alone processes roughly 90% of the world's diamonds by volume — and a major gold jewelry exporter. The US is the single largest consumer market for finished jewelry, and the trade corridor from Mumbai, Jaipur, and Surat to New York and Los Angeles moves billions of dollars in precious metal articles and gemstones every year.
The base MFN (Most-Favored-Nation) duty rate for most jewelry categories imported from India averages 6.0%. But that is a composite — the actual rate depends on the exact article and its HTS subheading.
Precious metal jewelry (gold, silver, platinum) spans 5% to 13.5% depending on whether the piece is finished or semi-finished, the metal type, and whether stones are set. Loose gemstones have different — often lower — rates than set stones because CBP classifies them by the stone material itself rather than as finished jewelry.
A Real Worked Example
Take $4,000 of gold-plated jewelry from a Jaipur supplier plus $150 shipping and insurance. The customs value is $4,000 — the price of the goods, with the freight and insurance excluded because they are stated separately on the invoice. Duty at 6.0% comes to $240.00. The US does not charge VAT or sales tax at the federal level on imports — that line stays zero.
The Merchandise Processing Fee (MPF) for informal entries adds $34.58 (0.3464% of the entered value, minimum $34.58, maximum $670.86 — the statutory minimum applies here). Total customs charges: $271.67. Landed cost delivered to the US port, freight and insurance included: $4,421.67.
If that same shipment qualifies for a lower HTS rate — say 5% instead of 6.0% — the duty drops to $200.00. At the high end of 13.5%, it climbs to $540.00. The spread between the two ends of that range is $340 on a $4,000 shipment. The exact 10-digit HTS code matters more than most first-time importers realize.
How CBP Calculates the Dutiable Value
US Customs calculates duty on the transaction value — the price you actually paid for the goods, sold for export to the United States. International freight and insurance come out of the base, provided your invoice identifies them separately. A CIF or DDP invoice that does not break out the freight puts the whole amount in.
What does get added is easy to miss: packing the buyer pays for, any selling commission, the value of tooling, moulds or materials you supplied to the factory, and royalties you are required to pay as a condition of the sale. Declaring the goods price and nothing else is wrong in one direction; declaring the CIF total is wrong in the other. How customs value is built goes through the list in filing order.
The formula, with the base stated properly: Customs Value = Goods Value + dutiable additions. Then: Customs Duty = Customs Value × Duty Rate (6.0%). Then: Landed Cost = Goods + Freight + Insurance + Customs Duty + MPF. Freight and insurance stay in the landed cost even though they are out of the duty base — that is the part first-time importers get backwards. No federal VAT or sales tax is added anywhere in the chain, because the US has no federal consumption tax on imports. State sales tax may apply when the goods are sold to the end consumer, but that is a point-of-sale tax, not a customs charge.
The $800 Line Is Suspended — Duty Now Runs From the First Dollar
Section 321 of the Tariff Act (19 U.S.C. § 1321) used to exempt shipments valued at $800 or less per person per day from duty. It was suspended on 29 August 2025, for every country of origin, so Indian jewelry now enters dutiable from the first dollar.
For a single $750 gold necklace shipped DTC from a Mumbai jeweler to a US customer: duty-free, no formal entry, no customs bond, no broker needed. The shipment clears under a simplified Type 86 (T86) electronic filing, and the buyer never sees a customs charge on the doorstep.
For a wholesale lot of 50 silver rings at $2,000: the full 6.0% MFN rate applies on the whole customs value — and it applies to a single $750 pendant the same way. Jewelry tends to be high value per gram, and with the $800 line gone there is no shelf to sit under: the goods value is the goods value whether you ship one piece or fifty. De minimis used to help individual B2C purchases (a single pendant, a pair of earrings, a gold chain) but it almost never helped wholesale or B2B shipments. If you are an importer bringing in inventory for resale, budget for duty on every line, however small.
The old cap counted goods value only — shipping and insurance never counted toward it. A $780 ring with $60 shipping used to stay under; an $805 ring with $1 shipping did not. There is no cliff left to fall off and no partial exemption to lose, because duty is now charged on the full customs value on every entry, however small the piece.
The per-person-per-day rule means CBP can aggregate multiple packages to the same consignee from the same foreign shipper on the same day. Splitting a $2,500 wholesale order into four $625 packages is structuring, and CBP treats it as customs fraud under 19 U.S.C. § 1592. Penalties for structured transactions can reach the domestic value of the merchandise — far more than just paying the duty would have cost.
Read the full de minimis guide →
Key HTS Chapters for Indian Jewelry
US Customs sorts jewelry and precious metal articles into several HTS chapters. Your chapter is the starting point for your duty rate — get this wrong and everything downstream (rate, entry type, documentation) is wrong too.
- Chapter 7113: Precious metal jewelry — gold, silver, platinum articles intended for personal adornment. 5% to 13.5% MFN. This is the single biggest category for Indian jewelry exports to the US, covering rings, necklaces, bracelets, earrings, chains, cufflinks, and brooches. Indian 22K gold jewelry — the country's signature export — almost always lands under 7113. The rate varies by subheading: gold necklaces and gold earrings can carry different rates even within the same chapter.
- Chapter 7116: Articles of natural or cultured pearls, precious and semi-precious stones — 2.5% to 21% depending on stone type and whether set or loose. A large share of India's processed colored-gem exports from Jaipur's cutting industry fall here. Note: set stones in precious metal mountings can sometimes be classified under 7113 instead — your broker should check both chapters and apply the subheading that most specifically describes the article.
- Chapter 7117: Imitation jewelry (costume jewelry) — 11% typical. Base metal jewelry with no precious metal content: brass, copper, plated alloys, synthetic stones. India's Jaipur manufacturing hub exports heavily into US fast-fashion supply chains under this chapter. If the piece contains any precious metal by weight, it likely belongs in 7113, not here — the precious metal content governs the classification.
- Chapters 7102–7104: Loose diamonds (worked and unworked), precious and semi-precious stones — 0% to 6.0% MFN. Most polished loose diamonds enter at 0% under standard MFN rates — no GSP needed, no FTA required. Subheading 7102.31.00 (unworked or simply sawn) and 7102.39.00 (polished) both carry a 0% MFN rate. This is why the India-to-US diamond pipeline is frictionless from a tariff perspective: the value-add happens in Surat, and the finished stones cross the border with zero customs liability.
- Chapter 7114: Goldsmiths' and silversmiths' wares — 3% to 8% depending on the article. Covers semi-manufactured precious metal items: silverware, hollowware, gold leaf, and findings used in jewelry manufacturing. If you import components rather than finished pieces — clasps, settings, chains by the meter — check whether they fall here or under 7113.
India's GSP Status — The On-Again, Off-Again Trade Preference
India is a beneficiary country under the US Generalized System of Preferences (GSP), a program established by the Trade Act of 1974 that grants duty-free access for thousands of products from developing countries.
Under GSP, many jewelry categories — including certain finished gold jewelry, polished semi-precious stones, and silver articles — could enter the US at 0% duty when the program is active. Importers claim GSP by using the "A" duty rate indicator on CBP Form 7501, and the duty line drops to zero on qualifying products.
In June 2019, the Trump administration revoked India's GSP eligibility over market access disputes — specifically, India's restrictions on US medical devices, dairy products, and data localization requirements that USTR determined were unreasonable and burdened US commerce. Restoration negotiations have been ongoing between USTR and India's Ministry of Commerce through both the Biden and subsequent administrations. As of June 2026, India's GSP status remains revoked. Indian jewelry pays full MFN rates on every entry — no preferential treatment, no "A" indicator, no duty-free access.
If GSP is restored — which Congressional trade-watchers consider likely in the next reauthorization cycle, given the strategic US-India trade and defense relationship — many Indian jewelry categories would drop to 0% overnight. Until the President signs a reauthorization bill and CBP publishes the updated GSP-eligible country list in the Federal Register: budget for the full MFN rate on every line item. Refunds for duties paid during the lapsed period are not guaranteed and depend on whether Congress includes retroactive relief language in the renewal bill.
The GSP status affects not just Chapter 71 (jewelry and precious metals) but also Chapter 42 (leather goods) and Chapters 61–62 (textiles and apparel), making it one of the most consequential trade policy variables for anyone importing from India. Compare with our China-to-US clothing guide →
Special Rules for Precious Metal Imports
Jewelry imports face CBP documentation requirements that go well beyond what typical consumer goods need. The commercial invoice must itemize, in English and for each piece: metal type (gold, silver, platinum, or base metal — be specific, not "yellow metal"), metal purity in karats or millesimal fineness (e.g., 22K, .916, .925 sterling), weight in grams for the metal component, stone type and carat weight if the piece includes gemstones, and the individual piece value in USD. Invoice summaries like "assorted gold jewelry — 50 pieces — $5,000" will get your shipment flagged for a documentation hold at the port. CBP wants line-item detail, and jewelry is a category where they actually enforce this.
CBP Valuation Scrutiny — Undervaluation Is a Real Risk
CBP scrutinizes jewelry entries for undervaluation more aggressively than most other consumer categories. The declared value should be the transaction value — what you actually paid the Indian supplier, supported by the invoice and payment records. But CBP officers can and do cross-check declared values against published precious metal spot prices.
If gold is trading at $2,000 per troy ounce and your declared value works out to $200 per ounce for the metal content alone (ignoring labor, the stones, and margin), expect a CF-28 Request for Information letter asking you to explain the discrepancy. Valuation enforcement in the jewelry sector is real, active, and backed by CBP's commercial fraud units at JFK, LAX/LGB, and Miami — the three largest US ports of entry for jewelry.
Formal vs. Informal Entry — When You Need a Customs Broker
For shipments valued over $2,500, formal entry is mandatory — customs bond, CBP Form 7501 filed through ACE, full entry summary with 10-digit HTS code, country of origin, and entered value. Under $2,500, informal entry is technically allowed under 19 CFR § 143.21, but CBP may still require a formal entry for jewelry at their discretion. In practice most jewelry entries end up formal because brokers and CBP both treat the category as high-risk. Entry type still decides what it costs to lodge the shipment — informal entry carries a small fixed MPF and no bond, formal entry carries 0.3464% MPF and a bond — but it no longer decides whether duty is owed. Duty is owed either way.
Hire a licensed customs broker who handles Chapter 71 entries regularly. Their fee ($75–$200 per entry) is cheaper than the penalty for a misclassification audit or an undervaluation enforcement action under 19 U.S.C. § 1592. The broker also handles the ACE filing, the bond, and any CBP requests for information — for jewelry, that alone is worth the fee.
Shipping and Insurance — Practical Considerations
Jewelry shipments from India to the US typically move by air freight (FedEx, UPS, DHL) or air cargo consolidator, not ocean freight. Transit time is 3–7 days door-to-door from Mumbai or Jaipur to major US ports. Insurance is not optional — jewelry is high-value, small-volume, and a theft target at every transfer point in the logistics chain.
Most carriers cap declared-value liability well below what your shipment is worth unless you buy supplemental coverage. Standard FedEx/UPS declared value maxes at $50,000 and requires proof of value documentation up front. Budget 1–3% of the declared value for full-coverage jewelry transit insurance through a specialist like Jewelers Mutual or your freight forwarder's policy. For shipments above $10,000, consider a continuous jewelry insurance policy rather than per-shipment coverage — it costs less over multiple shipments and has fewer coverage gaps.
Country of Origin Marking for Jewelry
US law (19 U.S.C. § 1304) requires every imported article to be marked with its country of origin in a conspicuous place, legibly, and in English. For jewelry, this typically means a stamp or engraving on the piece itself — "India" or "Made in India" — not just on the packaging or the display card. CBP enforces this at the port of entry.
Indian jewelry exporters are generally familiar with this requirement and mark pieces accordingly. But if you are having jewelry manufactured to your specifications, make sure the marking is included in your production order — adding it after the fact means reworking finished pieces or, worse, having CBP hold the shipment for non-compliant marking. The marking must be permanent (stamped, engraved, or etched), not a sticker or hang tag that can be removed.
Jewelry Returns, Repairs, and Temporary Imports
If you are sending jewelry from the US to India for repair, stone-setting, or finishing and then reimporting it, you can use a Temporary Importation Bond (TIB) under HTS Chapter 98, Subchapter XIII. The bond covers the duty that would otherwise be owed, and CBP cancels the bond when the goods are re-exported. This is standard for jewelry that crosses borders for work and returns — common for stones cut in Surat, set in Jaipur, and shipped back to the US.
For outright returns of defective jewelry from a US buyer back to an Indian supplier, the US export side is straightforward — no US export duty on jewelry. On the Indian reimport side, the Indian supplier should file for duty drawback or reimport relief under Indian customs rules — that is the supplier's responsibility, not the US importer's. If replacement jewelry ships back to the US, it is treated as a new import with full duty applicable on the replacement's customs value.
Kimberley Process for Diamonds
Rough (unpolished) diamonds imported from India require a Kimberley Process Certificate issued by India's Gem & Jewellery Export Promotion Council (GJEPC). India is a full KP participant, and the certificate must physically accompany the shipment in a tamper-resistant container with the KP certificate number visible on the exterior. No certificate means no clearance — CBP will seize rough diamond shipments that lack proper KP documentation, and the seizure is non-negotiable regardless of value. This is a customs compliance requirement entirely separate from the duty calculation.
Polished diamonds generally do not need a KP certificate. Once cut and polished, diamonds are considered "conflict-free" under the KP framework and move freely across borders without KP documentation.
However, you should still retain the supplier's written warranty that the diamonds originate from legitimate, KP-compliant sources. India's polished diamond export documentation from GJEPC typically includes this warranty as standard practice — it is part of the standard export packet.
The KP system applies to rough diamonds only — not to finished jewelry containing diamonds. If you import a finished gold ring with a set diamond, the tariff classification follows Chapter 7113 (finished precious metal jewelry), not Chapter 7102 (loose diamonds). The KP certificate requirement does not apply to set stones in finished jewelry. But the underlying diamond sourcing still matters for compliance: if CBP has reason to believe a set diamond came from a non-KP-compliant source, they can hold the shipment and request origin trace documentation. Know your supply chain from mine to mount.
Frequently Asked Questions
What's the duty rate for Indian jewelry imported into the US?
The average MFN duty rate is 6.0%, but the actual rate varies by HTS subheading and metal content. Finished gold jewelry under Chapter 7113 runs 5% to 13.5% depending on the specific article — a 22K gold necklace and a gold-plated silver ring are not the same subheading.
Imitation and costume jewelry under Chapter 7117 typically lands at 11%. Loose polished diamonds under Chapter 7102 enter at 0% under standard MFN rates — no special programs needed. Articles of precious and semi-precious stones under Chapter 7116 range from 2.5% to 21%. The exact rate depends on your 10-digit HTS code — pull it from the USITC Harmonized Tariff Schedule before you quote a landed cost to your customer.
Was Section 321's $800 exemption suspended for Indian jewelry?
No. Section 321's $800 exemption was suspended on 29 August 2025, so shipments with a goods value of $800 or less are no longer duty-free. For individual pieces shipped DTC — a single pendant, a pair of earrings, a gold chain — duty is now due from the first dollar, and the buyer sees a customs charge at delivery where there used to be none.
For wholesale lots the full MFN rate applies — and so it does for a single small piece, because there is no longer an $800 cap on goods value, and shipping or insurance never counted toward it. CBP can still aggregate multiple packages to the same recipient from the same shipper on the same day, so do not split a large order into smaller packages expecting a lower bill. Structuring carries civil penalties under 19 U.S.C. § 1592.
Does India get preferential tariff treatment from the US?
Currently no. India's GSP (Generalized System of Preferences) status was revoked by the US in June 2019 over market access disputes and has not been restored as of June 2026. Indian jewelry pays full MFN rates on all entries — no preferential duty, no reduced-rate indicators on the entry summary. Restoration negotiations between USTR and India's Ministry of Commerce are ongoing, and many trade policy analysts expect GSP to return in the next Congressional reauthorization cycle, but there is no confirmed timeline. Until the President signs a reauthorization: budget for the full MFN rate on every HTS line item.
What documentation do I need to import jewelry from India?
At minimum, every jewelry shipment needs a commercial invoice itemizing metal type, purity in karats or fineness, weight in grams, stone type and carat weight (if applicable), and individual piece value in USD; a packing list with piece counts and package weights; and the bill of lading or airway bill.
For rough diamonds specifically: a Kimberley Process certificate from India's GJEPC in a tamper-resistant sealed container. For polished diamonds: retain the supplier's written warranty of KP-compliant origin. Valuation documentation — the supplier's invoice plus proof of payment (wire transfer receipt) — is critical because jewelry is a high-scrutiny category for CBP valuation enforcement. For shipments over $2,500, you also need a customs bond and a formal entry filed through ACE.
Do I need special insurance for jewelry shipments from India?
Yes, absolutely. Standard carrier liability from FedEx, UPS, or DHL caps at $100–$1,000 by default — nowhere near enough for jewelry shipments that routinely run into four or five figures. You need a declared-value shipment with supplemental coverage, or better yet, a separate jewelry transit insurance policy through a specialist insurer.
Budget 1–3% of declared value for full-coverage transit insurance. For importers who ship regularly, a continuous jewelry insurance policy costs less per shipment than buying coverage one shipment at a time. Ask your customs broker for insurer recommendations — they work with jewelry insurers routinely.