New Delhi, March 30 The government on Monday provided an additional 30 days to the gems and jewelry sector to meet certain obligations, in order to help them cope with the ongoing crisis in West Asia.
The region is a key export destination for the sector. West Asia accounts for approximately 30% of India's total gems and jewelry, which amounted to USD 26.2 billion during April-February of this fiscal year.
The measure is intended to support exporters by easing compliance requirements and addressing operational difficulties that have arisen during this period.
A joint attack launched by the US and Israel on Iran last month has impacted the movement of air and ship consignments in the Middle East.
"Facilitative provisions for the gems and jewelry sector under Chapter 4 of the HBP-2023 have been incorporated in response to recent geopolitical developments in West Asia, and the export/import (as applicable) period for specific categories is being extended by 30 days without any requirement for fees or an application," the Directorate General of Foreign Trade (DGFT) said in a public notice.
Chapter 4 of the handbook of procedures deals with duty exemption/remission schemes.
The time period for re-export of diamonds imported for certification/grading purposes; export against supply of precious metals received from a foreign buyer; re-import of jewelry taken abroad for exhibition purposes; export in cases of gold booked with nominated agencies; export of jewelry in respect of gold obtained through outright purchase or loan basis; and on replenishment basis have been extended by 30 days.
Under this relaxation, the re-export period for imported diamonds sent for certification/grading has been extended from 90 days to 120 days. The export period in cases of supply by a foreign buyer has also been extended from 90 days to 120 days.
The government has also extended the period for re-import of gems and jewelry exported for holding or participating in overseas exhibitions, by an additional 30 days, in addition to the existing applicable period.
These relaxations are expected to provide timely support to the sector by reducing procedural stress on exporters, facilitating smoother completion of export-related transactions, and helping to address delays in the movement of consignments arising from the current global situation.
The additional time is expected to support business continuity and provide greater certainty to trade.
It has also been clarified that exporters will not be required to file any separate application, nor will any amendment, endorsement, or composition fee be payable for availing of this one-time relief.
Customs authorities have been advised to allow the corresponding export/import transactions, as applicable, subject to verification of relevant details.
Welcoming the move, former chairman of the Gems and Jewelry Export Promotion Council, Colin Shah, said it is a good relief for the sector at a time when they are facing difficulties in exporting to the Middle East countries.
"We hope the situation will improve soon," he said. India's exports to the UAE stood around USD 10 billion.
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