Gems & Jewellery Ftp Provisions

RAMLAL GEMS AND JEWELLERS

Ramlal Jewellers- Company Profile

Products Offered at Ramlal Jewellers

Export Opportunities  India is the fastest-growing jewellery market in the world.  New markets in Europe and Latin America.  Growing demand in south Asian and far East countries .  Exports expected to grow from $15.5 billion in 2005 to over

$25 billion by 2010. Competitor Nations Diamond: China, Belgium Gemstones: Sri Lanka, Thailand Gold Jewellery: China, Italy, France, Hong Kong, Mexico, Thailand, Switzerland

2004-05

2005-06

Source: www.gjepc.com

2006-07

2007-08

Expansion and Diversification of Ramlal Jewellers  Expanding manufacturing capabilities to address

increasing Export demand.  Developing 100 acres gems and jewellery SEZ in

Gujrat.  Further integration within the jewellery value chain.

SEZ’s benefits for Ramlal Jewellers  Proximity to the Kandla Port.  Access to good infrastructure facilities.  Help in achieving economies of scale  Low cost of production  Access to skilled labour at cheap rate

Gems and Jewellery Sector in India  The domestic market is estimated to be around US$ 16.1 billion and the

All India Gems and Jewellery Trade Federation, a nodal agency representing 300,000 jewellers across the country, expects it to grow to US$ 25.2 billion in two to three years.  The country is also the largest consumer of gold in the world. It consumes nearly 800 tonnes of gold that accounts for 20 per cent of world gold consumption, of which nearly 600 tonnes go into making jewellery.  India is also emerging as the world's largest trading centre for gold

targeting US$ 16 billion by 2010. The industry has the best skilled manpower for designing and producing high volumes of exquisite jewellery at low labour costs.  4% of the global Gems and Jewelery market .

FTP Provisions and their Benefits to Ramlal Jewellers 1. Import of gold of 18 carat and above shall be

allowed under the replenishment scheme. 1.  Duty free import entitlement of consumables for

metals other than Gold, Platinum shall be 2% of FOB value of exports during the previous financial year.     

FTP Provisions 3. Duty free import entitlement of commercial

samples shall be upto Rs 100,000. Samples required for purchase orders can be acquired duty free upto Rs 1 Lac from foreign suppliers.   

FTP PROVISIONS 4. Diamond & Jewellery Dollar Accounts- Firms and

companies dealing in purchase / sale of rough or cut and polished diamonds / precious metal jewellery plain, minakari and / or studded with / without diamond and / or other stones, with a track record of at least 3 years in import or export of diamonds /coloured gemstones / diamond and coloured gemstones studded jewellery / plain gold jewellery, and having an average annual turnover of Rs. 5 crore or above during preceding three licensing years, may also carry out their business through designated Diamond Dollar Accounts (DDA).

FTP Provisions 5. Duty free re-import entitlement for rejected

jewellery shall be 2% of the FOB value of exports   To promote the G&J exporters, this provision says that if your order is rejected by foreign buyer you may re-import upto 2% of the FOB value of exports

FTP Provisions 6. Cutting and polishing of gems and

jewellery, shall be treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act Ramlal jewellers can benefit by inclusion of polishing and cutting into various exemptions under Income Tax Act and thus leading to lowering the tax incidence (octroi, sales tax, value added tax) for Ramlal Jewellers.

FTP 2009-14: Provisions 7. To neutralize duty incidence on gold Jewellery

exports, it has now been decided to allow Duty Drawback on such exports. 7. In an endeavour to make India a diamond

international trading hub, it is planned to establish “Diamond Bourse(s)”. - the diamond bourses will provide a single platform for traders and it will make India more of a trading centre

FTP 2009-14: Provisions 9. A new facility to allow import on consignment

basis of cut & polished diamonds for the purpose of grading/ certification purposes has been introduced. 9. MDA -To promote export of Gems & Jewellery

products, the 13 value limits of personal carriage have been increased from $ 2 million to US$ 5 million in case of participation in overseas exhibitions.

FTP 2009-14: Provisions 11. The limit in case of personal carriage, as

samples, for export promotion tours, has also been increased from US$ 0.1 million to US$ 1 million.

FTP 2009-14: Provisions 12.Extension in number of days for re-import of unsold items in

case of participation in an exhibition in the USA from 60 days to 90 days. extension in number of days for re-import of unsold items in case of participation in an exhibition in the USA from 60 days to 90 days.  MDA and MAI Initiatives taken by the government will give

better opportunity to display products in the potential overseas markets. In addition, these steps will definitely lower the transaction costs of exports.

FTP 2009-14: Provisions 13.Focus Market Scheme-

The focus market scheme has been extended to 26 new markets, which includes 16 in Latin America and 10 in Asia-Oceania. -Focus Market Scheme aims to offset high freight cost and other disabilities to select Int’l Markets with a view to enhance our export competitiveness.  Countries in Latin American Block- Peru, Argentina, Chile, Paraguay  Countries in African Block- Angola, Gambia, Ethiopia, Cote D’ Ivoire  Countries in CIS (Commonwealth of Independent States) Block- Armenia, Georgia, Kazakhstan, Jamaica  Mongolia, Ghana, Croatia, Colombia

FTP 2009-14: Provisions 14. EOU units, including gems and jewelry units, may

on the basis of annual permission from Customs authorities, subcontract production processes to Domestic Tariff Area (DTA) through job work which may also involve change of form or nature of goods, through job work by units in DTA.

14. Surat in Gujarat have been recognized as Towns

of Export Excellence, for diamonds.

FTP 2009-14: Provisions 16. Gems and jewellery EOUs may source gold /

silver / platinum through nominated agencies on loan / outright purchase basis. Units obtaining gold / silver / platinum from nominated agencies, either on loan basis or outright purchase basis shall export gold / silver / platinum within 90 days from date of release.

Common FTP Schemes for all Sectors 

DEPB

To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB) Scheme is extended till 31.12.2010 where exporter is given a DEPB at a pre-determined credit on the FOB value. It allows import of any items except the items which are otherwise restricted for imports. DEPB will help in neutralizing the incidence of Customs duty on the import content of the export product.  

EPCG scheme allows import of capital goods for pre production,

production and post production at 3% Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issue-date.

Common FTP Schemes for all Sectors  Status holder to get duty credit scrip.  

An additional Duty Credit Scrips shall be given to Status Holders @ 1% of the FOB value of past exports which can be used for procurement of capital goods. This facility shall be available up to 31.3.2011. It will accelerate exports and encourage technological up gradation.

References

 www.gjepc.org  www.dgft.delhi.nic.in  www.eximpolicy.com

THANK YOU…!! Presented by: Tushar Jagota Neha Gupta Meenakshi garg Neha Sethi Pallavi Aggarwal Nipun Sharma Archie Gupta Kritika Ritika Rohit Narain