general budget Ahead of 2019, the Gems and Jewelery Export Promotion Council (GJEPC) has urged the government to reduce import duty on gold and cut and polished diamonds (CPD) to help the sector remain globally competitive. India’s gem and jewelery industry is dependent on imports for raw materials including gold, diamonds, silver and colored gems. GJEPC is demanding reduction in import duty on precious metals from the current 15 per cent to four per cent.
In this, there has been a demand to reduce the customs duty on CPD from the current five percent to 2.5 percent. The body urged the government to revive the ‘Diamond Imprest License’ and cut import duty. GJEPC said it will provide a level playing field to diamond exporters belonging to Indian Micro, Small and Medium Enterprises (MSMEs) with their larger counterparts, prevent diamond traders from investing in diamond mining destinations and prevent the classification of diamonds in factories and uncut diamonds. Will provide more employment in terms of processing.
The Council has urged the Government to consider the long pending demand of sale of rough diamonds in Special Notified Zones (SNZ) through Safe Harbor Rule and expand the scope of entities eligible to operate through SNZ. Currently, only demonstration sessions are organized by mining countries in the SNZ. The Council also urged that the SNZ should also be allowed to function as a Free Trade Storage Zone (FTWZ) when it is not used by foreign mining companies and units.
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