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This licence was earlier there in the foreign trade policy of 2002 and 2009.
Commerce and Industry Minister Piyush Goyal on Saturday announced restoration of Diamond Imprest Licence, which allows import duty exemption on cut and polished diamonds up to a specified limit.
The gems and jewellery exporters were demanding for this licence.
In the absence of this licence, the cut and polished diamonds were getting imported in Dubai and getting assorted there and re-exported, impacting India’s exports and jobs in the sector.
The minister announced the restoration of the licence during a session at the India International Jewellery Show (IIJS) 2024 here. It was organised by the Gem and Jewellery Export Promotion Council (GJEPC).
“Shri Piyush Goyal, Minister of Commerce and Industry announced the introduction of the Diamond Imprest Licence,” the GJEPC said in a statement.
The licence allows eligible exporters to import cut and polished diamonds, including semi-processed, half-cut, and broken diamonds. Exporters can import diamonds up to 5 per cent of their average turnover from the past three years, with a requirement to add 10 per cent value.
These imports must be used by the importer and cannot be transferred, even after exports are completed, according to an expert.
Explaining the reason behind this, GTRI founder Ajay Srivastava said that some countries like South Africa, Namibia and Tanzania require rough diamonds to be cut or processed before export.
“When these diamonds are imported into India, they are classified as cut and polished diamonds and face a 5 per cent Basic Customs Duty, making India’s diamond exports less competitive compared to countries like China, Vietnam, and Sri Lanka. Now this licence will help import duty free,” Srivastava said.
This licence was earlier there in the foreign trade policy of 2002 and 2009.
Talking about recent Budget announcements, Goyal said that the significant cut in gold and silver import duty would help push the growth of the jewellery sector.
“Gold will increasingly come through official channels and our workforce will get job orders. India’s domestic market is resilient and growing fast to compensate for the loss in exports due to global recession. I urge gem and jewellery exporters to be positive,” the council said, quoting the minister.
He also said that the Common Facility Centre for the sector at a special economic zone here will impart training to 1,500 special youngsters every year and they will get placement from the 10,000-plus members of GJEPC.
At present, the centre is training 300 physically challenged youths including women.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 10 2024 | 11:03 PM IST
