Government has cut import duty on gold findings

Partial breather for gems & jewellery exporters, import duty cut from 10% to 4%

In a partial breather for gems and jewellery exporters, the government has cut import duty on gold findings, a component used for holding ornament, from the existing 10% to 4% effective immediately.

Gold rindings are small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place. These are actually the raw materials of the jewellery sector imported to manufacture the finished precious metal jewellery for export or domestic consumption.

The decision assumes significance as gold findings forms a major portion of the value of small ornaments especially in nose pins, earrings and other types of small price sensitive articles. Generally, rigid and aspiring consumers opt for gold findings along with ornaments while cost – sensitive prefer a mix of gold with other allied metals including copper.

The import duty on gold findings has been increasing over the last two years. In the Union Budget for the year 2010-11, first, it was increased from Rs 500 per 10 grams to Rs 750 per 10 grams. The same was increased on January 16, 2012 from Rs 750 per 10 grams to 5% which was subsequently increased to 10% in the Union Budget for the year 2012-13 announced on March 16, 2012.

The gems and jewellery industry welcomed the move.

Rajiv Jain, Chairman of the apex body Gems & Jewellery Export Promotion Council (GJEPC) said, “The increased duty on findings had started depicting an adverse effect on the total export of jewellery from the country and has already raised a question mark on export of one category of jewellery where imported findings are insisted by the foreign buyers.”

Indian Gem & Jewellery industry expresses its gratitude to the government for showing faith and understanding in this industry which is a major source of livelihood for millions of people in India, apart from contributing around 14% to the export earnings of the country.

Looking into the grievance of the jewellery sector which provides direct livelihood to around 12 lakhs people across the country, the Council had strongly represented the issue at both Department of Commerce and Department of Revenue and subsequent meetings were held with the concerned secretaries and senior officials of the respective departments and ministries. The Council had strongly taken up the issue of reduction of import duty on gold findings to further augment this sector both at the national and international level, Jain added.