India’s Central Board of lndirect Taxes & Customs under the Department of Revenue, Ministry of Finance, has clarified that gems and jewellery exports from the country could now take place through the courier mode, acceding to this long-standing demand of the Gem & Jewellery Export Promotion Council (GJEPC) to make B2C, small-value, e-commerce exports economically viable.
Colin Shah, Chairman, GJEPC said, “The earlier compulsion to send goods only through the “cargo/B2B” trade” mode had resulted in the high cost of operations, which had been preventing the sector to undertake B2C e-commerce exports. For instance, a shipment originating from China or the Middle East to the US cost $3.5 and $5, respectively, whereas the cost for a shipment originating from India to the US was as high as $65 to $100. With this clarification, the Govt. has added one more step in the direction of ease of doing business, which will further boost business.”
The Circular issued on 27th November, 2020, mentions that the GJEPC had made representations to the Finance Ministry “seeking clarification on whether gems and jewellery is allowed to be exported through courier under the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 as also the Courier Imports and Exports (Clearance) Regulations, 1998.”
“2. The issue has been examined. It appears that the doubt has arisen as Regulation 2(2)(a)(iv) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 places a restriction on imports of precious and semi-precious stones, gold or silver in any form, through courier. The Regulation 2(2) (a) (iv) reads as “These regulations shall not apply to the following imported goods requiring testing of samples thereof or reference to the relevant statutory authorities or to experts before their clearance, namely precious and semi-precious stones, gold or silver in any form”.
“2.1 Thus, the restriction imposed by Regulation 2(2)(a)(iv) on gems and jewellery is applicable only on their imports.
“2.2. Similarly, the Courier Imports and Exports (Clearance) Regulations, 1998 place a restriction on imports of precious and semi-precious stones, gold or silver in any form and not on their exports.
“3. In view of the above, it is clarified that the extant Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 and the Courier Imports and Exports (Clearance) Regulations, 1998, do not restrict exports of gems and jewellery through the courier mode.
“4. The above clarification has to be read along with the other provisions applicable for exports through courier, such as those under Regulation 2(2) (b) and 2 (2) (c), of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 and under regulation 2 (2) of the Courier Imports and Exports (Clearance) Regulations, 1998 while allowing such exports. All extant provisions for export of gems and jewellery under any other law for the time being in force will also apply.