Govt Revises Precious Metal Wastage Norms For Export Jewellery Manufacturing
Date
11/2/2024 2:06:24 PM
(MENAFN- KNN India)
New Delhi, Nov 2 (KNN)
The Indian government has implemented new regulations governing wastage allowances for exporters of gold, silver, and platinum jewellery, introducing separate standards for handmade and machine-made items effective January 1.
This revision of the Standard Input Output Norms (SION) represents a significant modification to the duty-free raw material import framework for jewellery manufacturers.
The Directorate General of Foreign Trade (DGFT) announced on Friday that handmade jewellery will now be permitted 2.25 per cent wastage for gold and platinum, down from 2.5 per cent, while silver's allowance decreases to 3 per cent from 3.2 per cent.
Machine-made jewellery faces more stringent limits, with gold and platinum wastage capped at 0.45 per cent and silver at 0.5 per cent. For studded jewellery, the new guidelines permit 4 per cent wastage for handmade pieces and 2.8 per cent for machine-made items across all three precious metals.
These latest regulations emerge as a more moderate approach compared to the May proposal, which had suggested drastically reduced wastage allowances of 0.5 per cent for plain gold and platinum jewellery and 0.75 per cent for silver and all studded jewellery.
That earlier proposal was suspended following industry opposition, leading to five consecutive extensions of the previous norms through December.
The revised framework, which also encompasses idols, coins, medallions, and other precious metal items, maintains the fundamental principle of duty-free metal imports for export production.
Manufacturers must ensure that exported products account for the weight of imported duty-free metals, less permitted wastage, to prevent excess materials from entering domestic markets.
SION continues to define the requisite input materials for manufacturing export units, incorporating these new wastage parameters alongside other production metrics.
(KNN Bureau)
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