Gems & Jewellery FTP Provisions

8/14/2019 Gems & Jewellery FTP Provisions

1/24

RAMLAL

GEMS AND JEWELLERS


2/24


3/24

Products Offered at Ramlal Jewellers


4/24

Export Opportunities

India is the fastest-growing jewellery market in the world.

New markets in Europe and Latin America.

Growing demand in south Asian and far East countries .

Exports expected to grow from $15.5 billion in 2005 to over

$25 billion by 2010.

Competitor Nations

Diamond: China, Belgium

Gemstones: Sri Lanka, Thailand

Gold Jewellery: China, Italy, France, Hong Kong, Mexico,Thailand, Switzerland


5/24

2004-05 2005-06 2006-07 2007-08

Source: www.gjepc.com


6/24

Expansion and Diversification of RamlalJewellers

Expanding manufacturing capabilities to addressincreasing Export demand.

Developing 100 acres gems and jewellery SEZ inGujrat.

Further integration within the jewellery value chain.


7/24

SEZs benefits for Ramlal Jewellers

Proximity to the Kandla Port.

Access to good infrastructure facilities.

Help in achieving economies of scale

Low cost of production

Access to skilled labour at cheap rate


8/24

Gems and Jewellery Sector in India

The domestic market is estimated to be around US$ 16.1 billion and theAll India Gems and Jewellery Trade Federation, a nodal agencyrepresenting 300,000 jewellers across the country, expects it to grow toUS$ 25.2 billion in two to three years.

The country is also the largest consumer of gold in the world. Itconsumes nearly 800 tonnes of gold that accounts for 20 per cent ofworld gold consumption, of which nearly 600 tonnes go into makingjewellery.

India is also emerging as the world's largest trading centre for goldtargeting US$ 16 billion by 2010. The industry has the best skilled

manpower for designing and producing high volumes of exquisitejewellery at low labour costs.

4% of the global Gems and Jewelery market .


9/24

FTP Provisions and their Benefits to RamlalJewellers

1. Import of gold of 18 carat and above shall beallowed under the replenishment scheme.

1. Duty free import entitlement of consumables for

metals other than Gold, Platinum shall be 2% of FOBvalue of exports during the previous financial year.


10/24


11/24

FTP PROVISIONS

4. Diamond & Jewellery Dollar Accounts- Firms andcompanies dealing in purchase / sale of rough or cut andpolished diamonds / precious metal jewellery plain,minakari and / or studded with / without diamond and / orother stones, with a track record of at least 3 years in

import or export of diamonds /coloured gemstones /diamond and coloured gemstones studded jewellery / plaingold jewellery, and having an average annual turnover ofRs. 5 crore or above during preceding three licensingyears, may also carry out their business through

designated Diamond Dollar Accounts (DDA).


12/24


13/24

FTP Provisions

6. Cutting and polishing of gems andjewellery, shall be treated asmanufacturing for the purposes of

exemption under Section 10A of theIncome Tax Act

Ramlal jewellers can benefit by inclusion of

polishing and cutting into various exemptionsunder Income Tax Act and thus leading to loweringthe tax incidence (octroi, sales tax, value addedtax) for Ramlal Jewellers.


14/24

FTP 2009-14: Provisions

7. To neutralize duty incidence on gold Jewelleryexports, it has now been decided to allow DutyDrawback on such exports.

7. In an endeavour to make India a diamondinternational trading hub, it is planned toestablish Diamond Bourse(s).

- the diamond bourses will provide a single platform fortraders and it will make India more of a trading centre


15/24


9. A new facility to allow import on consignmentbasis of cut & polished diamonds for thepurpose of grading/ certification purposes has

been introduced.

9. MDA -To promote export of Gems & Jewelleryproducts, the 13 value limits of personalcarriage have been increased from $ 2 millionto US$ 5 million in case of participation inoverseas exhibitions.


16/24


11. The limit in case of personal carriage, assamples, for export promotion tours, hasalso been increased from US$ 0.1 million toUS$ 1 million.


17/24


12.Extension in number of days for re-import of unsold items incase of participation in an exhibition in the USA from 60 daysto 90 days.extension in number of days for re-import of unsold items incase of participation in an exhibition in the USA from 60 daysto 90 days.

MDA and MAI Initiatives taken by the government will givebetter opportunity to display products in the potentialoverseas markets. In addition, these steps will definitelylower the transaction costs of exports.


18/24


13.Focus Market Scheme-The focus market scheme has been extended to 26new markets, which includes 16 in Latin Americaand 10 in Asia-Oceania.

-Focus Market Scheme aims to offset high freight cost

and other disabilities to select Intl Markets with aview to enhance our export competitiveness. Countries in Latin American Block- Peru, Argentina,

Chile, Paraguay Countries in African Block- Angola, Gambia,

Ethiopia, Cote D Ivoire Countries in CIS (Commonwealth of Independent

States) Block- Armenia, Georgia, Kazakhstan,Jamaica

Mongolia, Ghana, Croatia, Colombia


19/24


14. EOU units, including gems and jewelry units, mayon the basis of annual permission from Customsauthorities, subcontract production processes toDomestic Tariff Area (DTA) through job workwhich may also involve change of form or nature

of goods, through job work by units in DTA.

14. Surat in Gujarat have been recognized as Townsof Export Excellence, for diamonds.


20/24


16. Gems and jewellery EOUs may source gold /silver / platinum through nominated agencies onloan / outright purchase basis. Units obtaining gold/ silver / platinum from nominated agencies, either

on loan basis or outright purchase basis shallexport gold / silver / platinum within 90 days fromdate of release.


21/24

Common FTP Schemes for all Sectors

DEPB

To impart stability to the Policy regime, Duty EntitlementPassbook (DEPB) Scheme is extended till 31.12.2010 whereexporter is given a DEPB at a pre-determined credit on the FOBvalue. It allows import of any items except the items which are

otherwise restricted for imports.DEPB will help in neutralizing the incidence of Customs duty onthe import content of the export product.

EPCG scheme allows import of capital goods for pre production,production and post production at 3% Customs duty, subject to

an export obligation equivalent to 8 times of duty saved oncapital goods imported under EPCG scheme, to be fulfilled in 8years reckoned from Authorization issue-date.


22/24

Common FTP Schemes for all Sectors

Status holder to get duty credit scrip.An additional Duty Credit Scrips shall be given to StatusHolders @ 1% of the FOB value of past exports which canbe used for procurement of capital goods. This facilityshall be available up to 31.3.2011.

It will accelerate exports and encourage technological upgradation.


23/24

References

www.gjepc.org

www.dgft.delhi.nic.in

www.eximpolicy.com


24/24

THANK YOU!!Presented by:

Tushar Jagota

Neha GuptaMeenakshi garg

Neha Sethi

Pallavi Aggarwal

Nipun Sharma

Archie GuptaKritika

Ritika

Rohit Narain

Gems & Jewellery FTP Provisions

Documents

Transcript of Gems & Jewellery FTP Provisions