| Date: |
27-09-2019
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| Notification No: |
Policy Circular No. 28/2019-2020
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| Issuing Authority: |
DGFT
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| Type: |
Circular
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| File No: |
File No. 01/94/180/300/AM19/PC-4 |
| Subject: |
Value Addition Norms for availing duty exemption in Gem and Jewellery
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Government of India
Ministry of Commerce And Industry
Department of
Commerce
Directorate General of Foreign Trade
Policy Circular
No. 28/2019-2020
Dated the 27th September, 2019
To
All Regional Authorities of DGFT
All Members of Trade
Subject: Value Addition Norms for availing duty exemption in Gem and Jewellery.
Clarifications has been sought from this Directorate on the value addition
calculations as per the provisions of FTP/HBP for export of Gold/silver/platinum
jewellery and articles.
2. Para 4.38 of FTP on Value Addition in Gem and
Jewellery is reproduced below:
Minimum Value Addition norms for gems and
jewellery sector are given in paragraph 4.61 of Handbook of Procedures. It would
be calculated as under:
VA=A-B *100
B
Where
A = FOB
value of the export realised/ FOR value of supply received.
B = Value of
inputs (including domestically procured) such as gold/silver/platinum content in
export product plus admissible wastage along with value of other items such as
gemstone etc. Wherever gold has been obtained on loan basis, value shall also
include interest paid in free foreign exchange to foreign supplier.
Further, under para 4.82 (c) for Replenishment scheme it is mentioned,
inter-alia, that
“….price shall be actual price at which
gold/silver/platinum is purchased by nominated agencies plus permitted service
charges levied by nominated agencies shall be included with the price of gold/
silver/ platinum for value addition….”
This has led to seeking of
clarification in the matter from this directorate.
3. It is clarified
that for the purpose of value addition, inputs in ‘B’ in para 4.38 mean duty
free (either on advance or replenishment basis)gold/silver/platinum content in
the export product plus the admissible wastage.
4. This issues with the
approval of the DGFT.
[Issued from File No. 01/94/180/300/AM19/PC-4]
(Vijay Kumar)
Additional Director General of Foreign Trade
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