Stringent wastage norms for jewellery exports to be effective from January 1, 2025

The latest regulations distinguish between handmade and machine-made jewellery for the first time, adjusting the permissible wastage across various categories

Mumbai: In a significant policy shift, the Government has announced tighter regulations regarding wastage allowances for exporters of gold, silver and platinum jewellery.

The Directorate General of Foreign Trade (DGFT) revealed the updated standards recently, marking a notable change from previous guidelines proposed in May, which were later put on hold following industry backlash. The latest regulations distinguish between handmade and machine-made jewellery for the first time, adjusting the permissible wastage across various categories. These regulations will be in effect from January 1, 2025.

The norms were revisited by the Government following a formal request by the Gem & Jewellery Export Promotion Council (GJEPC). According to news reports, in the month of May, the DGFT had issued a public notice tightening wastage norms, following which the exporting community flagged its concerns.

The Government had amended the percentage of wastage by weight in export of plain jewellery to 0.5 % for gold and platinum from 2.5 % earlier and in studded jewellery to 0.75 % from 5 % previously.

Under the revised norms, handmade gold and platinum jewellery will be allowed a wastage of 2.25%, down from the current 2.5%. For silver jewellery, the allowance will decrease to 3%, a slight reduction from 3.2%. For machine-made jewellery, the wastage limit is set at 0.45% for gold and platinum, while silver is capped at 0.5%. Additionally, handmade studded jewellery will see an allowance of 4%, and machine-made studded pieces will be permitted a wastage of 2.8%.

This new framework also extends to idols, coins, medallions, and other items crafted from these precious metals. It allows for the duty-free import of raw materials needed for manufacturing jewellery intended for export, with a requirement that the weight of exported goods corresponds to the weight of imported metals, minus the specified wastage allowances. This measure aims to prevent excess metal from entering the local market.

The recent changes reflect a balance between the Government’s regulatory goals and the concerns of the gems and jewellery industry, which has been actively engaged in consultations throughout the process.

Retail Jeweller India News