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📦 II. PRECIOUS METALS AND METALS CLAD WITH PRECIOUS METAL

II. PRECIOUS METALS AND METALS CLAD WITH PRECIOUS METAL

HS Code:

📦

Overview

The category II. PRECIOUS METALS AND METALS CLAD WITH PRECIOUS METAL, primarily under HS Code Chapter 71, encompasses a range of products including gold, silver, platinum, and other precious metals in various forms (unwrought, semi-manufactured, or powdered), as well as metals clad with precious metals. This category also includes jewelry, coins, and articles made of precious metals. It is a high-value segment of global trade, often influenced by economic conditions, investment demand, industrial usage (e.g., in electronics and automotive sectors), and geopolitical stability. Trade in this category is critical for industries and as a store of value, with significant fluctuations based on market sentiment and currency strength.

Total Trade Volume

USD 350 billion

Data from 2022

Source

United Nations Comtrade Database & World Trade Organization (WTO)

Tariff Analysis

Average Rate

5.2% ad valorem

Highest Rate

20% (applied by certain developing economies to protect local industries)

Lowest Rate

0% (under free trade agreements and in major hubs like Switzerland and UAE)

Common Restrictions

  • Import quotas in specific countries to control gold inflows
  • Export bans on unwrought precious metals during economic crises
  • High customs duties in countries with significant jewelry manufacturing
  • Mandatory hallmarking and certification requirements

Market Trends

Rising demand for gold as a safe-haven asset

Increased trade volumes in gold bullion and coins, especially during global economic uncertainty

2022

Growing industrial use of platinum and palladium

Higher exports to automotive and technology sectors for catalytic converters and electronics

2021-2022

Shift towards recycled precious metals

Reduced reliance on mining, affecting raw material export countries while boosting recycling hubs

2020-2022

Recent Developments

Switzerland Strengthens Position as Gold Trading Hub

Switzerland has increased its gold refining and trading capacity, handling a significant portion of global gold imports and exports due to its stable financial system and strategic location.

Mid-2022

Further concentration of trade flows through Swiss markets, impacting pricing and supply chain dynamics.

India Raises Import Duties on Gold

India, a major consumer of gold, increased import duties to curb demand and reduce current account deficit pressures.

July 2022

Temporary decline in official imports, with potential rise in smuggling and informal trade.

Sanctions on Russian Precious Metals

Following geopolitical tensions, several Western countries imposed sanctions on Russian gold and other precious metals, disrupting traditional supply chains.

March 2022

Redirection of Russian exports to non-sanctioning countries, increased prices due to supply constraints.