News

Jun 21, 2019

Government Circular on Countervailing Duty Comes as Major Relief for G&J Industry

A recent notification (Circular No. 17/2019-Customs; F.No. DGEP/G&J/06/2019, issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes & Customs, (Directorate General of Export Promotion)) has come as a major relief to the gems and jewellery industry.

In effect, the circular says that Additional Customs Duty / Countervailing Duty (CVD) is not applicable on the re-import of gems and jewellery goods which were earlier exported for purposes of either participation in exhibition or on consignment basis. The Central Excise Department had, however, raised a demand for the same on goods re-imported into India, and some 1,200 showcause notices were served to companies for the period of 2016-17. 

The Gem & Jewellery Export Promotion Council (GJEPC) had earlier made representations to both the Ministry of Finance and the Ministry of Commerce & Industry, Government of India (GoI) requesting that the relief be granted as such duty was not only not applicable, but it was also causing gems & jewellery industry unnecessary hardship, which would be exacerbated if the notices were to be pursued to their conclusion.