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India Allows Establishment of Bonded Warehouses for Gems, Jewelry Sector
Feb 4, 2013 7:07 AM
By Dilipp S Nag
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RAPAPORT... India has re-introduced a provision for setting up private/public bonded warehouses for the gems and jewelry sector in its Foreign Trade Policy for 2009 to 2014.
“Private/Public bonded warehouses may be set up in Special Economic Zones (SEZ)/ Domestic Tariff Areas (DTA) for import and re-export of cut and polished diamonds, cut and polished colored gemstones, uncut and unset precious and semi-precious stones, subject to achievement of minimum value addition (VA) of 5 percent,” the government said in a circular.
The move will facilitate the establishment of bonded warehouses in SEZ or DTA for diamond, gems and precious and semi-precious stones. A similar provision existed in the Foreign Trade Policy (FTP), but it was deleted after the abolition of import duty on cut and polished diamonds in 2009.
The Gem & Jewellery Export Promotion Council (GJEPC) stated that after the imposition of a 2 percent import duty on polished diamonds in January 2012, it lobbied the Department of Commerce to re-introduce the facilitation of bonded warehouses and the same has been suggested in the FTP.
The government has also allowed single revolving bank guarantee for different transactions for the import of silver, gold or platinum for the gems and jewelry sector.
After considering the gem trade's feedback, the government decided that the bank guarantee furnished by the importer can be used for subsequent consignments, if the importer has fulfilled the export obligation and export proceeds realized with respect to the earlier consignments, according to a separate announcement.
The bank guarantee may be so used for subsequent import consignments, provided it is sufficient to cover the duty involved and has validity for a sufficient time period with a self-renewal provision built in, it noted.
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Tags:
bank, Bonded Warehouses, Dilipp S Nag, DTA, Foreign Trade Policy, FTP, gems, GJEPC, India, Jewelry, SEZ, Warehouse
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