New Delhi: In response to fervent objections raised by the gems and jewellery sector, the government has decided to suspend the implementation of recently revised norms governing wastage allowances for gold, silver, and platinum jewellery exports until July 31, 2024. This decision, announced on Tuesday, comes just a day after the contentious notification was issued, reflecting the government’s responsiveness to industry feedback.
The move follows the government’s publication on Monday of updated guidelines pertaining to permissible wastage thresholds and standard input-output criteria for gold and silver jewellery exports. However, the industry decried these norms, asserting that they were formulated without prior consultation.
The Directorate General of Foreign Trade (DGFT) clarified on Tuesday that, in light of representations made by the Gem and Jewellery Export Promotion Council highlighting the sector’s apprehensions regarding the revised standards, stakeholders would be afforded another opportunity to express their concerns. Industry players and the council have been invited to furnish relevant data and insights to the norms committee within a one-month period.
“In response to the industry’s feedback, DGFT hereby suspends the Public Notice issued on May 27, 2024, until July 31, 2024, with immediate effect,” stated a public notice issued by the directorate.
During this interim period, the wastage norms that were in effect prior to the issuance of the May 27 notice will be reinstated.
The DGFT emphasized that consultations with industry representatives had taken place on March 5 and 21 earlier this year.
The revised norms, introduced through the May 27 notice, elicited concerns from the exporting community, particularly regarding the stringent reduction in permissible wastage limits. Under these revised guidelines, the allowable wastage for plain and studded jewellery saw significant reductions, potentially impeding the export competitiveness of these products.
To address these apprehensions, the Gem and Jewellery Export Promotion Council has urged the DGFT to conduct a comprehensive study involving leading exporters across various jewellery categories, facilitating informed decision-making regarding the necessity of the revised norms.
In addition to the wastage norms, the government has also introduced standard input-output norms pertaining to gold and silver jewellery exports. These norms stipulate that the weight of mountings and findings used in export products will not be factored into the determination of the net content of gold and silver.
While proponents of the tightened norms argue that they would encourage the adoption of efficient manufacturing practices, thereby reducing wastage, others contend that such measures could escalate production costs.
The suspension of the revised norms underscores the government’s commitment to fostering a conducive environment for the gems and jewellery industry, ensuring that policy interventions are informed by extensive stakeholder consultations and conducive to sustained sectoral growth.
Standard input-output norms (SION) represent a crucial framework dictating the input requirements for the manufacture of export goods across various industries, including electronics, engineering, chemicals, food processing, handicrafts, and more.
