Govt considers extending deadline for gold export waste standards

New Delhi, July 26 (KNN) The Indian government is considering further extending the decision to cap permissible losses on exports of gold, silver and platinum products beyond the current July 31 deadline.

As Businessline reports, the potential postponement comes as officials scrutinise a significant influx of industry data and calls for the current higher limits to remain in place.

The Directorate General of Foreign Trade (DGFT) may need an extra month to thoroughly analyse the data provided by various industry groups, according to sources familiar with the matter.

The aim of the applications is to show that waste in certain sectors exceeds the reduced limits proposed in May this year, which were subsequently suspended.

On May 27, the DGFT changed its export policy, lowering the wastage limits for gold and platinum jewellery from 2.5 per cent to 0.5 per cent and for silver jewellery from 3.2 per cent to 0.75 per cent.

The allowable percentage for medallions and coins was also lowered from 0.2 percent to 0.1 percent. However, after industry protests, these changes were suspended until July 31.

The Standard Input Output Norm (SION), which specifies the required amount of inputs needed to produce an exportable product, is crucial as it provides various benefits to exporters, including duty-free import of inputs.

The Gemstones and Jewellery Export Promotion Council (GJEPC) has raised concerns about the potentially disproportionate impact of the revised standards on small and medium-sized enterprises, which account for 85% of all exporters in the sector.

In response to the DGFT’s request for industry feedback, the GJEPC has undertaken to conduct a detailed study on wastage norms in various categories of jewellery.

The decision was made against the backdrop of a 7.74 per cent year-on-year increase in exports of gold and other precious metal jewellery, which amounted to USD 13.31 billion in the 2023-2024 fiscal year.

As the government continues its deliberations, the jewellery export industry awaits a final decision that could significantly impact its operations and competitiveness in the global market.

(KNN Office)