Ministry of Finance releases draft POS for e-commerce jewelry exports by courier
The Department of Finance has released a draft SoP to facilitate e-commerce jewelry exports via courier, as it seeks to provide a simplified regulatory framework for manufacturers and traders wishing to export jewelry.
The Central Board of Indirect Taxes and Customs (CBIC) has invited stakeholders to submit their comments and suggestions by June 14 on the Standard Operating Procedure (SoP) for the implementation of a simplified regulatory framework to facilitate the export of precious metal jewelry and costume jewelry through e-commerce in courier mode.
CBIC is also proposing to amend the Courier Imports and Exports (Electronic Reporting and Processing) Regulations 2010 and related forms and to issue a notice prescribing conditions for re-importing returned jewelery and invited stakeholders to give their opinion on this.
Finance Minister Nirmala Sitharaman had announced in the 2022-23 budget the implementation of a simplified regulatory framework to facilitate the export of jewelry through e-commerce.
Subsequently, consultations with stakeholders including those with the Express Industry Council Of India (EICI), Gems and Jewelery Export Promotion Council (GJEPC), e-commerce operators, trade members, agents working in the Export Promotion Branch, the Branch of Customs and systems trainings were conducted.
“Comments received during the above-mentioned consultations have shown that a simplified regulatory framework is needed for jewelry exports via email exports via international courier terminals (ICTs),” the CBIC said inviting comments on the draft. of SoP.
“This SoP is applicable to the e-commerce export of precious metal jewelery (whether or not studded or set with precious or semi-precious stones)….and costume jewellery….In the initial phase, the SoP will be implemented on ECCS (Express Cargo Clearance System) at ICT Mumbai, ICT Delhi and ICT Jaipur,” the CBIC added.
Rajat Mohan, senior partner at AMRG & Associates, said exporting jewelry would bring in foreign exchange to the country and contribute to the net disposable income of Indian designers, artisans and skilled workers.
“Integrating and facilitating the export of jewelry through e-commerce platforms would improve the livelihoods of millions of people engaged in the sector,” Mohan added.
The new rules state that the export of jewelery by courier is only permitted after receipt of a full advance and that photos of the exported jewellery, product packaging/outer covering, product list on the e-commerce platform and the Hallmark certificate are uploaded to the customs system.
“Reimports of physically damaged or defective jewelry exported by courier are permitted subject to several conditions to keep threatening manufacturers at bay. These restrictions are imposed to ensure that the original consignee returns the damaged goods originally shipped to the exporter origin in a short period of time,” Mohan said.
Abhishek Jain, KPMG Partner in India (Indirect Taxes), said jewelry manufacturers and traders involved in/or intending to export jewelry out of India should carefully study these SOPs and notifications and provide their suggestions in a timely manner.