Exporters of gems and jewellery import raw materials, which they make into ornaments for export. These raw materials are expensive and there is a way to procure these inputs duty-free. This is where the Schemes for Exports of Gems and Jewellery come into the picture.
The Schemes for Exports of Gems and Jewellery provide their exporters with replenishment (REP) and diamond imprest licenses.
How do exporters benefit from these schemes?
The exporters benefits from the schemes in the following ways:
- Advance Procurement/Replenishment of Precious Metals from Nominated Agencies
An exporter of gold / silver / platinum jewellery, is allowed to obtain the same as an input for their export product from certain Nominated Agencies.
- Nominated Agencies are MMTC Ltd, The Handicraft and Handlooms Exports Corporation of India Ltd, The State Trading Corporation of India Ltd, PEC Ltd, STCL Ltd, MSTC Ltd, and Diamond India Limited
- Four Star Export House from Gems & Jewellery sector and Five Star Export House from any sector may be recognized as Nominated Agency by Regional Authority
- A bank authorized by the Reserve Bank of India to serve as a Nominated Agency
- Replenishment Authorisation for Gems
This allows duty-free imports of gems. Listed below are the replenishment rates:
|Gems||Percentage of replenishment allowed|
|Cut and polished Emeralds/ Rubies/ Sapphires in Jewellery valued up to US$ 350 per carat fob.||60% for uncut and unset Emeralds Rubies/Sapphires|
|Cut and polished Emeralds/ Rubies/Sapphires in jewellery valued above US$ 350 per carat fob.||80% for uncut and unset Emeralds Rubies/Sapphires|
|All varieties of semi-precious stones and synthetic stones||50% on fob value of such stones|
|Pearls||60% on fob value of such pearls.|
|Plain Gold/Silver jewellery and articles||50%|
|Plain platinum jewellery and articles||50%|
- Replenishment Authorisation for Consumables
Replenishment authorization allows for duty free import. Listed below are the replenishment rates:
|Poly bag (as notified by Customs) for Jewellery made out of precious metals (other than Gold & Platinum)||2% of the FOB value of goods|
|Cut and Polished Diamonds and Jewellery made out of Gold and Platinum||1% of the FOB value of goods|
|Rhodium finished Silver jewellery||3% of the FOB value of goods|
What is the eligibility criteria for these schemes?
The following is the eligibility criteria for these schemes:
An exporter can apply for a license for import:
- If the exporter has a minimum of three licensing years of export performance, equal to the best export performance of cut and polished diamonds in any licensing year
- Against a valid export order in his own name
- If an exporter of cut & polished diamonds, who is a status holder, is issued a license for import of cut & polished diamonds up to 5% of the export performance of the preceding year
How can an exporter apply for these schemes?
An exporter can apply for these schemes online by clicking here.
*Terms and conditions
The government has come up with these schemes in order to promote exports. Hence there is a need for an assurance that exporters would be exporting a higher value item for every import. The following is the minimum value addition stipulated:
|Item of export||Minimum value addition|
|Plain gold / platinum / silver jewellery and Articles and ornaments like Mangalsutra containing gold and black beads / imitation stones, except in studded form of jewellery||3%|
|All types of Studded gold / platinum / silver 5% Jewellery and articles thereof||5%|
|Any jewellery / articles manufactured by fully 1.5% mechanized process||1.5%|
|Gold / silver / platinum medallions & coins (excluding coins of nature of legal tender)||1.5%|
|Gold / silver / platinum findings / mountings manufactured by mechanized process||2.25%|
For further details related to this scheme, click here.