US Assistant Secretary and Ambassador interacts with GJEPC, BDB and SGJMA

A discussion on the trade relations between India and US’s gem and jewellery industry was taken up with Mr. Charles Rivkin, Assistant Secretary, Bureau of Economic and Business Affairs, USA, and a high level delegation who met India’s associations of the trade at the at the Bharat Diamond Bourse on November 15, 2014.

Mr. Rivkin was briefed upon the current state of Indo-US gem and jewellery trade presented by the Gem & Jewellery Export Promotion Council, Bharat Diamond Bourse and SEEPZ Gem & Jewellery Manufactures Association.

A key concern addressed was the ‘restoration of GSP on jewellery articles exported to the USA’, which has been withdrawn since last several years. Speaking at the Meet, Mr. Vipul Shah Chairman GJEPC said, “Currently, import of jewellery from India attracts duty between 5.5 - 5.8 percent. The jewellery exports have witnessed a sharp decline from US$ 2.3bn in 2007 to US$ 1.5bn in 2013, due to the withdrawal of GSP benefits extended to India by the USA. If GSP is restored this would help boost India’s Gem & Jewellery Exports to the USA” He added, “GJEPC ensures all diamond manufacturers observe strict KPCS compliance while sourcing the rough”

Mr Rivkin along with his delegation visited the Bharat Diamond Bourse , toured Mumbai Diamond Merchants Association, oldest trade body over 100 years and SME Trading Hall and expressed his amazement at “the sheer magnitude of the bourse and the employment generated by the industry to the tune of 3.5 million.” He further added that, “India should emphasise on Transparent Supply Chain and Responsible Sourcing as these are the two key concerns of the US Government. US GSP annual review is on table of the US Government and will be announced soon in near future.”

While India’s total gem and jewellery exports stood at USD 40 billion in 2013, India-US trade in gem and jewellery was at US$ 8.00 billion in the same period , with diamonds exported worth US$ 6. 1 billion and jewellery exports valued at US$ 1.3 billion in 2013.

India’s trade members also emphasised that US retailers incentivise the Indian industry for being members of Responsible Jewellery Council to achieve highest level of compliance to meet consumer expectations across the globe, especially the USA. They insisted on fair play in calling for standards in terms of Indian manufacturers vis a vis jewellery manufacturers from other countries. The Indian jewellery industry is proactively engaged with OECD to comply with responsible sourcing of conflict free gold to manufacture jewellery to comply with Dodd & Frank Act regulations.

Mr. Rivkin expressed willingness to work closely with the Responsible Jewellery Council to find practical ways to achieve more secure ways of such sourcing compliance. Mr. Anoop Mehta, President BDB, said “BDB along with Council is in the process of implementation of a project called MY KYC to achieve compliance in terms of anti-money laundering & terrorist financing”

The trade highlighted the emphasis on ethical and fair business practices via strict code of conduct for gem and jewellery members. Proactive aggressive steps against proliferation of undisclosed sale of synthetic diamonds as natural diamonds are being undertaken by the Natural Diamond Monitoring Committee established under the aegis of GJEPC and BDB . Regular dialogues with the members, governments, both national and international, financial institutions and associations around the world are held to spread the message of 360 degree compliance and achieving excellence in terms of quality, ethical business and technology.