The government on Monday gave 30 more days to the jewelery and gems sector to complete some compliances, so that they can help deal with the ongoing crisis in West Asia. The region is a major export destination for the gems and jewelery sector. West Asia accounts for about 30 percent of India’s total gems and jewelery exports, which stood at $26.2 billion during April-February this financial year. The objective of this measure is to provide assistance to exporters by simplifying the compliance requirements and removing the operational difficulties faced at present. The joint attack on Iran by the US and Israel last month has affected the movement of air and sea cargo in West Asia.
For which compliances were exemptions granted?
The Directorate General of Foreign Trade (DGFT) said in a public notice that in response to the recent geopolitical developments in West Asia, facilitative provisions have been included for the gems and jewelery sector under Chapter 4 of HBP-2023, and the period for export and import (as applicable) for specific categories is being extended by 30 days without any duty or requirement of application. Chapter 4 deals with fee exemption and waiver schemes. The time limit for re-export of imported diamonds for certification and grading purposes, export in lieu of supply of precious metals received from a foreign buyer, re-import of jewelery taken abroad for exhibition purposes, export in cases of gold booked with designated agencies, export of jewelery in respect of gold received on full purchase basis or loan basis and export on replenishment basis has been extended by 30 days.
Will be able to get help
Under this relaxation, the period for re-export of imported diamonds sent for certification and grading has been increased from 90 days to 120 days. In cases of supply by foreign buyers, the export period has also been increased from 90 days to 120 days. The Government has also extended the period for re-import of gems and jewelery exported for organizing or participating in exhibitions abroad by 30 days, in addition to the existing period. These relaxations are expected to help this sector at the right time. This will reduce the processing pressure on exporters, enable easier completion of export transactions and help in eliminating delays in movement of goods due to the current global situation. This additional time is expected to maintain business continuity and bring greater certainty to the business.
Got a big relief
It has also been clarified that exporters will not need to make any separate application, nor will they have to pay any fee to avail the benefit of this one-time relief. Customs authorities have been advised to allow the relevant export and import transactions, as applicable, after verification of relevant details. Welcoming the move, Colin Shah, former chairman of the Gems and Jewelery Export Promotion Council, said it is a good relief for the sector at a time when they are facing difficulties in exporting to West Asian countries. He said that we hope that the situation will improve soon.