The Union Minister of Commerce & Industry, Shri Kamal Nath announced special measures in the Annual Supplement to the Foreign Trade Policy (FTP) which he said would help Indian gems & jewellery to sparkle on the world stage.
Giving details of the measures, he said:
"We have large unutilized melting, refining and jewellery-making production capacity.
To enable such capacities to be used in a productive manner, import of precious metal scrap and used jewellery will now be allowed for melting, refining and re-export of jewellery. However, such import will not be allowed through hand baggage.
Gems & Jewellery exporters will now be allowed to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier.
Many a times exporters faced the dilemma of unsold jewellery in the foreign markets because of changing designs and other such factors.
To overcome this problem, Gems & Jewellery exporters will now, be allowed to export jewellery on consignment basis.
Treatment of cut and polished precious and semi-precious stones enhance the quality and afford higher value in the international market.
For this purpose, Gems & Jewellery exporters will now be allowed to export such items for treatment and subsequent re-import, within a period of 120 days.
Increase of gold and silver prices in the international market over the past few years has made the present value addition norms on export of gold & silver jewellery unrealistic. The value addition norm for such items is being reduced from 7 percent to 4.5 percent”.
Press Information Bureau Government of India
marketing@alchempro.com
