Gems, jewellery sector to lose US tax reliefs

The US is likely to withdraw the duty concession to the Indian gems and jewellery sector when the General System of Preferences (GSP) comes up for review.

"The GSP provides duty concessions on imports from some sectors of industry in developing countries to improve their competitiveness. The Congress has expressed its concerns on gems and jewellery, whether it is appropriate to give it concessions as the sector has become competitive," Deputy US Trade Representative Karan Bhatia said.

He, however, added that since the issue was to be decided by the Congress nothing can be predicted.

He said the GSP has been introduced by legislation and was reviewed periodically. "The current extension expires this year end and there is hope that it will be extended this year on next year retrospectively," he said in reply to a question at a meeting organised by the CII.