India, European Free Trade Association’s free trade pact to triple gem and jewellery exports: GJEPC

EFTA countries have removed customs duties on gem and jewellery products, enabling Indian exporters of gems and jewellery to have a duty free access in all the EFTA nations

Mumbai: The Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) has opened immense opportunities for the Indian gem and jewellery (G&J) sector to enhance its exports to the untapped EFTA countries, especially to Switzerland. EFTA countries have removed customs duties on the entire chapter 71 (gem and jewellery products) enabling Indian exporters of gems and jewellery to have duty-free access in all the EFTA countries – Switzerland, Iceland, Norway, and Liechtenstein.

Vipul Shah, Chairman, GJEPC said, “I extend my gratitude to the Government of India, particularly to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, for incorporating GJEPC’s recommendations in the India-EFTA Trade and Economic Partnership Agreement (TEPA). The $100 bn bilateral trade pact has opened up immense opportunities for Indian gem and jewellery manufacturers to broaden their export prospects in the EFTA region. It will also pave the way for new and larger FTAs with many other European countries. I am sure that exports of gem and jewellery products to EFTA group will scale up from US$335 million to at least US$1 billion in the coming times. I believe there is a huge scope for exporting fine gold jewellery and silver jewellery with high gloss and matte finishes, as well as luxurious diamond and coloured gemstone jewellery.”

GJEPC closely worked with the Ministry of Commerce and Industry during the negotiations of this agreement with EFTA group. The GJEPC recommended HS line-wise (at 8 digit level) stance pertaining to offerings/requests to be made to the EFTA group in the light of the best interest of the whole industry.

EFTA’s total imports of finished gem and jewellery products are at US$12.3 billion and from India its imports are merely at US$335 million (India’s share is 2.7% in EFTA’s total imports of gems and jewellery from the world) leaving a vast scope for Indian manufacturers and exporters to enhance its exports to the untapped EFTA markets.

The relaxation measures for the EFTA group concerning the gem and jewellery sector entail a phased approach. Over the course of 5, 7, or 10 years, imports of various products from EFTA countries into India will gradually become duty-free, with duties being eliminated in equal installments. These products include natural and cultured pearls (both worked and unworked), natural rough diamonds, unworked precious and semiprecious coloured gemstones, polished synthetic stones, and dust and powder of diamonds and stones.

Furthermore, customs duty on certain items such as cut and polished diamonds, precious and semiprecious coloured gemstones, and polished lab-grown diamonds from EFTA has been reduced from 5% to 2.5%, to be phased out over five equal annual installments. Particularly significant is the reduction of duty by 1% from the Bound Rate on imports of precious metal gold from EFTA countries. These relaxations are aligned with the FTP norms and are deemed feasible.

Retail Jeweller India News and newindianexpress.com