Government Considers Extending Deadline On Gold Export Wastage Norms

New Delhi, Jul 26 (KNN) The Indian Government is contemplating a further extension of its decision to reduce permissible wastage in the export of gold, silver, and platinum items beyond the current deadline of July 31.

This potential deferment comes as officials diligently examine a substantial influx of industry inputs and appeals to maintain the existing higher limits, reported Businessline.

According to sources familiar with the matter, the Directorate General of Foreign Trade (DGFT) may require an additional month to thoroughly analyse data submitted by various industry groups.

These submissions aim to demonstrate that wastage in specific sectors exceeds the reduced limits proposed in May of this year, which were subsequently put on hold.

On May 27, the DGFT amended the export policy, reducing 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 permissible percentage for medallions and coins was also lowered from 0.2 per cent to 0.1 per cent. However, following industry protests, these policy changes were suspended until July 31.

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

The Gems & Jewellery Export Promotion Council (GJEPC) has expressed concerns about the potential disproportionate impact of the revised norms on small and medium-sized enterprises, which constitute 85 per cent of all exporters in the sector.

In response to the DGFT's request for industry input, the GJEPC has committed to conducting a detailed study on wastage norms across different jewellery categories.

This decision comes against the backdrop of a 7.74 per cent year-on-year increase in exports of gold and other precious metal jewellery, which were valued at USD 13.31 billion in the 2023-24 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 Bureau)