GJEPC supports SNZ regulatory framework and taxation regime

The recently announced Foreign Trade Policy for 2015-20 was welcomed by the GJEPC, as it has paved way for the Indian gem and jewellery industry to strengthen its exports, improve its ease of doing business, while supporting Make in India campaign. The sector is a significant contributor to the country’s exports and as such, it received an impetus with the announcement of a critical regulatory framework related to SNZ.

Indian Prime Minister, Shri Narendra Modi recently announced the acceptance of the industry’s proposal for a Special Notified Zone. Special Notified Zones for consignment import and export of rough diamonds, which will have in place, the regulatory framework and taxation regime necessary to encourage international mining companies to sell their rough diamonds directly in India, had been proposed. The SNZ were viewed to give the Indian diamond industry a strong competitive advantage over other diamond trading centres of the world and also ensure a steady supply of rough diamonds in India.

The acceptance for the SNZ means it would help miners bring roughs on consignment basis display and book orders from local buyers. This measure will help galvanize the industry to regain its pre-eminent position in the global market, which it has been slowly losing to China, Israel and Belgium over the last couple of years.

A large segment of India’s G&J exporting community belongs to the MSME sector, which is often constrained for financial resources. In foreign trade transactions, often there is a long period before export value realization. Export credit plays a significant role in facilitating exports. A programme for providing interest subvention on identified sectors for a period of 3 years has been worked out and budget allocation in 2015-16 has been made available.

Also, GJEPC has been made the Nodal Authority for scrutinizing the applications for enlistment of laboratories for export of cut and polished diamonds for certification/grading and re-import. Inclusion of Indian Diamond Institute, Surat and International Institute of Diamond Grading & Research India Pvt Ltd, Surat under the list of agencies allowed to import diamonds for certification /grading of diamonds without any import duty and re-export of the same.

Other measures announced in the policy include Calicut Airport, Kerala and Arakonam ICD, Tamil Nadu have been notified as registered ports for import and export. The GJEPC has been excluded from the list of Nominated Agency.