Measures to boost gems, jewellery trade

FOREIGN TRADE POLICY/ SECTOR-WISE ANALYSIS AND ASSESSMENT

Commerce and Industry Minister Kamal Nath on Friday announced a series of measures to boost gems and jewellery trade. Liberalising the norms for export of gems and jewellery, he announced reduction of the value-addition norm to 4.5 per cent from 7 per cent.

In addition, the Foreign Trade Policy for 2006-07 has allowed import of precious metal scrap and used jewellery for certain purposes, export of jewellery on consignment basis and import of cut and polished precious and semi-precious stones for treatment. It has also changed norms for re-import of rejected precious metal jewellery.

"Increase in gold and silver prices in the international markets over the past few years has made the present value-addition norms on export of gems and jewellery unrealistic," he added.

The policy has allowed import of precious metal scrap and used jewellery for utilising spare capacities in melting, refining and jewellery making. Such import, however, will not be allowed through hand baggage.

Exporters will also have to fulfill export obligation and value-addition requirement, as notified by the government. The detailed procedure including value-addition requirement and export obligation period will be notified separately by the director-general of foreign trade.

The re-import of rejected precious metal jewellery will now only be subject to refund of duty exemption benefits on inputs.