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Value addition norm on gem, jewellery exports cut
Our Bureau
New Delhi
,
April 7
The Annual Supplement to the Foreign Trade Policy has come up with a number of measures to facilitate exports of value-added gems and jewellery products and cater to the changing needs of the market.
Faced with an increase in gold and silver prices in the international market over the past few years, the Government has now reduced the value addition norm on export of gold and silver jewellery from seven per cent to 4.5 per cent.
Global hub
Releasing the Annual Supplement today, the Commerce and Industry Minister, Mr Kamal Nath, said that India has the potential to become an international hub for gems and jewellery.
"We have already introduced some measures in the Budget. The diamond trade, which was concentrated in Antwerp, is moving out - to Dubai, to Tel Aviv. I want Mumbai to be right up there and not lose out to its fellow Asian cities."
UnTo enable productive use of the unutilised melting, refining and jewellery-making production capacity, the Government has allowed import of precious metal scrap and used jewellery for melting, refining and re-export of jewellery.
However, such import would not be allowed through hand baggage.
Moreover, the gems and jewellery exporters would be allowed to re-import the rejected precious metal jewellery subject to the refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier.
To overcome the dilemma of unsold jewellery in the foreign markets due to changing designs and other factors, the gems and jewellery exporters would now be allowed to export jewellery on consignment basis.
Export for treatment
They would also be allowed to export cut and polished precious and semi-precious stones for treatment and subsequent re-import within a period of 120 days.
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