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Duty Drawback Rates

In month of August the Union Commerce Ministry decide the Foreign Trade Policy. The ministries decided and announce to include Gem and Jewelry sector in duty drawback rates. The duty drawback rates are likely to be announced in fortnight or month for Gem and Jewelry sector. The exporters of Gem and Jewelry sector will charge the duty according to duty drawback rates.

The Gem and Jewelry industry was down in financial year. But the industry has turnaround the export and rise up for 2.26% in month of September 2009. The decision likely to be announced at very right time, as the Gem and Jewelry industry is in recovery process.

As per recommendation of the Gem and Jewelry Export promotion Council (GJEPC) the duty drawback rates of gold is Rs. 20.6 per gm and Rs. 20600 per kilo of gold Jewelry  exported and for silver Jewelry exported the duty drawback rates are Rs. 1030 per kilo. The Government will decide the final rates.

The whole sector of Gem and Jewelry will make profit. According to GJEPC the decision of inclusion of the sector shall promote and help the small exporters in small cities. Now the small exporters from small cities can  purchase gold from the open market, export the final product and can claim duty charged as the gold as per duty drawback rates announced on the gold which they have purchased from the open market.

These rates will also recover and turnaround the diamond industry but they have to wait for some period. The western diamond industry will come into light after Christmas. The chances of recovery are likely to come up in coming months.

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