Govt reduces import duty on Gold Findings from 10% to 4%

The import duty on gold findings has been increasing over the last two years. In the Union Budget for the year 2010-11, first, it was increased from Rs. 500/10 gms to Rs. 750/10gms.

The Gem and Jewellery Export Promotion Council (GJEPC) welcomes the pragmatic step taken by the Government of India in reducing the customs duty on import of Gold Findings from 10% to 4%. Commenting on the same Shri. Rajiv Jain, Chairman stated “the entire Indian Gem & Jewellery industry expresses its gratitude to the Indian Government for showing faith & understanding in this industry which is a major source of livelihood for millions of people in India, apart from contributing around 14% to the export earnings of the country.”

Gold Findings are small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of jewellery in place. These are actually the raw materials of the jewellery sector imported to manufacture the finished precious metal jewellery for export or domestic consumption.

The import duty on gold findings has been increasing over the last two years. In the Union Budget for the year 2010-11, first, it was increased from Rs. 500/10 gms to Rs. 750/10gms. The same was increased on 16th January, 2012 from Rs. 750/10gms to 5% which was subsequently increased to 10% in the Union Budget for the year 2012-13 announced on 16th March, 2012.

The increased duty on findings had started depicting an adverse effect on the total export of jewellery from the country and has already raised a question mark on export of one category of jewellery where imported findings are insisted by the foreign buyers.

Looking into the grievance of the jewellery sector which provides direct livelihood to around 12 lakhs people across the country, the Council had strongly represented the issue at both Department of Commerce and Department of Revenue & subsequent meetings were held with the concerned secretaries and senior officials of the respective departments and ministries. The Council had strongly taken up the issue of reduction of import duty on gold findings to further augment this sector both at the national and international level.