DGFT, Wastage Norms, Jewellery Export: The DGFT has suspended new wastage norms for jewellery exports until July 31st following GJEPC’s advocacy. The changes, which affect gold, platinum, and silver content limits, disproportionately impact SMEs. The extension allows GJEPC to conduct a detailed study and provide input on Standard Input Output Norms (SION).
The Gem & Jewellery Export Promotion Council (GJEPC) has expressed its gratitude to the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, for suspending the recent changes to the wastage norms for gold, platinum, and silver content in jewellery exports.
This decision comes after significant concern from jewellery manufacturers and small exporters, who were disappointed and worried by the abrupt policy change without prior industry consultation. GJEPC successfully negotiated a two-month reprieve for further review.
In an urgent virtual meeting on May 28th, GJEPC actively advocated for a balanced approach to minimize export disruptions while safeguarding the livelihoods of millions dependent on the trade. During the discussion, GJEPC highlighted that the revised norms would disproportionately affect small and medium-sized enterprises (SMEs), which make up 85% of the exporters.
The DGFT had announced amendments to the allowable wastage percentages for jewellery exports: reducing permissible wastage for plain gold and platinum jewellery from 2.5% to 0.5%, for studded jewellery from 5% to 0.75%, and for medallions and coins from 0.2% to 0.1%. Additionally, the weight of imported mountings and findings made of gold or silver used in export products would no longer count towards the net content of these metals.
Acknowledging the DGFT’s responsiveness, GJEPC Chairman Vipul Shah stated, “The industry’s growth and competitiveness depend on thoughtful policies. We appreciate the DGFT’s prompt action to suspend the new wastage policy considering its impact on small exporters. The existing norms have been in place for over a decade, and any significant changes require thorough study and consultation with industry stakeholders.”
The DGFT has granted GJEPC until July 31st to provide detailed inputs on Standard Input Output Norms (SION) and conduct an in-depth study on wastage norms across various jewellery categories, including plain, studded, machine-made, and hand-made. This extension allows the industry to avoid an immediate standstill in exports and ensures any policy changes are well-informed and considerate of the industry’s needs.