Promotion of export of Gems and Jewellery , "> Promotion of export of Gems and Jewellery " />
Wednesday, 16 October 2019
khabarexpress:Local to Global NEWS
  1065 view   Add Comment

Promotion of export of Gems and Jewellery

Rajya Sabha Export of gems and jewellery has bee identified as a thrust sector in the Foreign Trade Policy (2004-09).  In the Foreign Trade Policy as updated on 19.4.2007, following facilities have been extended to the sector:

Import of gold of 8 carat and above allowed under the replenishment scheme subject to the import being accompanied by an Assay Certificate specifying the purity, weight and alloy content.

Duty Free import entitlement of consumables, tools, machinery and equipments for metals other than Gold and Platinum equal to 2% and for Gold and Platinum equal to 1% of FOB value of exports during the preceding financial year.  In case of rhodium-finish silver jewellery, entitlement will be 3% of such jewellery.

Duty free import entitlement of gems & jewellery samples in a financial year upto Rs. 300,000/- or 0.25% of the average of last three years export turnover of gems and jewellery items, whichever is lower.

Duty free re-import entitlement for rejected jewellery upto 2% of the FOB value of exports in preceding year.

Cutting and polishing of gems & jewellery, treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act.

Import of precious metal scrap/used jewellery allowed for melting, refining and re-export of jewellery.  However, such import will not be allowed through hand baggage.

Gems & Jewellery exporters allowed to export jewellery on consignment basis as per Rules.

Gems & Jewellery exporters allowed to export cut and polished precious and semi-precious stones for treatment and re-import as per Rules.

In the Union Budget 2007-08 following facilities have been provided to this sector:

Import duty on cut and polished diamond abolished.

Import duty on unworked corals reduced from 30% to 10%.

Import duty on rough synthetic stones reduced from 12.5% to 5%.

Introduction of Income Tax on turnover basis for assesses engaged in diamond manufacturing and trading who declare profits from such activities at 8% or more of turnover.

Other facilities extended to this sector are promotion of gems and jewellery products through advertisements, publicity campaigns and participation in international fairs, organizing buyer-seller meets abroad, etc.  The Government also encourages creation of training infrastructure in this sector.

            Export value of gems and jewellery in money terms during 2004-05, 2005-06 & 2006-07 (upto January, 2007) are as under:

Year                                        Export Value    

                                               (in US Million $)

                                                   13,761.77

                                                    15,546.58

2006-07(up to Jan, 07)          12,849.79

           

This was stated by the Minister of State for Commerce, Shri Jairam Ramesh in a reply in the Rajya Sabha today.

Share this news

Post your comment