The Gem & Jewellery Export Promotion Council (GJEPC) has urged the US to provide tariff relief for natural diamonds and coloured gemstones under the new tariff regime.
The new tariff came into effect on July 24. The duty remains unchanged at 10% for Indian gem and jewellery exports.
Calls for bilateral trade pact
India’s placement in the lower tariff band gives exporters a 2.5 percentage-point advantage over several competing manufacturing and trading hubs that now face a 12.5% additional tariff.
GJEPC said the continuation of the 10% tariff remains a challenge for India’s gem and jewellery exports, particularly as competing diamond trading centres continue to enjoy duty-free access for natural diamonds.
No forced labour
“At the outset, we categorically reject any implication that India’s gem and jewellery sector is linked to forced labour. We welcome the Centre’s amendment to the Foreign Trade Policy that prohibits imports of goods produced wholly or partly with forced labour, reinforcing India’s commitment to internationally accepted labour standards,” said GJEPC Chairman Kirit Bhansali.
He said the 10% tariff under the new Section 301 regime was not justified and called for an early India-US Bilateral Trade Agreement to bridge the remaining tariff gap.
Natural diamonds seek exemption
GJEPC reiterated that natural diamonds and coloured gemstones are critical raw materials for the jewellery manufacturing industry and should be included under Annex III exemptions from the additional tariff.
The council said securing tariff relief for these products, similar to the exemptions available to countries such as the European Union and Malaysia, remains one of its key priorities.
Company background
GJEPC is the apex body representing India’s gem and jewellery industry. Sponsored by the Ministry of Commerce & Industry, it promotes exports and represents the interests of the sector in domestic and international markets.