Chennai : The Gem and Jewellery Export Promotion Council has urged the Union commerce ministry to amend the diamond dollar account in order to include gold dollar account as well. In a memorandum submitted to the Union commerce minister Murasoli Maran, the apex body of the fabricated ornaments exporters association said that such an amendment is needed so that the exporters of gold jewellery be allowed to use the dollar earned by them and to pay to the nominated agencies in dollars to purchase gold. "This will, among other things, avoid the hidden cost, insulate the exporters from the vagaries of exchange rate and will make Indian exports more competitive in the international market," the memorandum said.While welcoming the government decision to slash the value addition norms for jewellary studded with imitation stones from 10 per cent to 5 per cent, the association pointed out that the admissible wastage was also brought down from 9 per cent to 3.5 per cent.
"This causes considerable difficulties because the process of manufacturing studded jewellery is almost the same for imitation stones and other precious stones and involves all the process like drilling, filing, setting etc. Only the stone value is negligible where as the wastage of gold is much higher in the studded jewellary than in the plain gold," the memorandum pointed out. Therefore, the association has urged the government to reduce the value addition norm from 15 per cent to 10 per cent. The association has also urged the government to hike the admissible wastage in the case of imitation stones to 9 per cent.
The association has also demanded an amendment in the gold loan scheme kicked off by the State Bank of India (SBI) in such a way the gold can be given as loan for the exhibitions abroad which would help spur exports.The memorandum also pointed out that though the Exim policy allows the personal carriage of gems and jewellary for export and import purposes, the customs in none of the ports in the country allows such practice. Similarly, exports against the gold supplied by the foreign buyer is also remain defunct following official apathy, the association said.
The gem and jewellary exporters are also deprived of the 100 per cent replenishment scheme as the value is fixed at 87 per cent for plain and 80 per cent for studded jewellary. This should be raised to 91 per cent and 87 per cent respectively, the association demanded.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
