GJEPC urges Government of India to implement Special Notified Zone

SURAT: The Gems and Jewellery Export Promotion Council (GJEPC) has urged the Central Government to implement ‘Special Notified Zone’ scheme at the Bharat Diamond Bourse (BDB) to facilitate the smooth movement of rough diamonds on consignment basis by the overseas diamond miners approved by the Reserve Bank of India (RBI).
Industry sources said that Prime Minister Narendra Modi had recently announced setting up of the special notified zone at the first ever World Diamond Conference (WDC) hosted by the GJEPC at New Delhi on December 11.Modi also announced changes in the custom notification for allowing the import of rough diamonds on consignment basis and other perks to the diamond miners setting up trading offices in India.
GJEPC office-bearers said that a list of proposals have been submitted to the Government of India. The demands include taking the Gem and Jewellery Sector under Interest Subvention Scheme, separate 'ITC HS Code (export code)' for man-made diamond to protect the interest of natural diamond industry and expansion of skill development activities.
Recommending proposals for implementation in the next three years, GJEPC said, "The government may spearhead initiatives to legalise current mining activity through an appropriate licensing framework and develop a regulatory framework for new mining and exploration"
Vipul Shah, chairman, GJEPC said, “The G&J sector has the potential to grow by 25 per cent to 30 per cent in 2015 if the proposals submitted by the GJEPC are accepted by the government. Apart from special notified zone, the proposals include abolition of import duty on cut and polished coloured gemstones from the existing 2.5 per cent level, hike in drawback rates for gold and silver in the backdrop of prevailing 10 per cent import duty and implementation of turnover-based taxation system for Indian diamond industry.”