muhammadhafeezmalik
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India’s gems and jewellery market size was at US$ 78.50 billion in FY21. Growth in exports is mainly due to revived import demand in the export market of the US and fulfilment of orders received by numerous Indian exhibitors during the Virtual Buyer-Seller Meets (VBSMs) conducted by GJEPC.
India’s gems and jewellery exports reached US$ 39.14 billion in 2021-22, a 54.13% rise from the previous year. In October 2022, India’s gems and jewellery exports was at US$ 1.48 billion. The Government of India is aiming at US$ 70 billion in jewellery export in the next five years (until 2025), up from US$ 35 billion in 2020.
Source: https://www.ibef.org/industry/gems-jewellery-india
I contrast the sector exports are not encouraging for Pakistan from last couple of years. Once the export was $400million in 2014. But since then the exports declined gradually and reached to the worst level of $10 million in June, 2022.
This tells the whole story of the sector. In addition to this, the major portion of export of this sector constitutes of “articles of jewelry” which is the raw form. It is an indication of lack of value addition and limited infrastructure in the sector and also coupled with more issues as well.
PROCEDURE FOR EXPORT OF GOLD JEWELRY AND PRECIOUS / SEMI-PRECIOUS STONES AND IMPORT FACILITY PROVIDED AGAINST EXPORT THEREOF.
Simplified:
If you want to export a gold ornament or a stone
- Bring your parcel to air port to excise authorities they will weigh and categorise the quality and determine a fee, pay the fee and send.
- STOP!! you have to registered first with EPB before bringing the parcel.
- STOP!! you have to obtain the recommendation of All Pakistan Gem Merchants & Jewellery Association; and All Pakistan Commercial Exporters Association of Rough and Unpolished precious and Semi-Precious Stones before registering with Export promotion Bureau.
- STOP!! you have to get NOCs from 19 agencies including SBP becoming member of All Pakistan Gem Merchants & Jewellery Association; and All Pakistan Commercial Exporters Association of Rough and Unpolished precious and Semi-Precious Stones.
Import of gold for re-export in the form of gold jewellery shall be governed by the two schemes namely (1) Entrustment Scheme (2) Import against Export Performance.
- You can't import raw gold ore and add value to it in Pakistan, you have to import 99.99% pure gold and then export it.
- You have find a buyer who would willing to pay 25% extra for shaping 99.99% pure gold into an bangle or chain etc. else you would not be allowed to export this gold.
If a foreigner traveler/touraist want to buy jewlery or gem or stone from a local shop.
1. Arrangements shall be made by the exporters and customs authorities to enable buyers to personally take away export parcels.
2. Foreign nationals and overseas Pakistanis can take out personally gold jewellery/precious/semi precious stones upto the US$ 10,000/-(US Dollars ten thousand only) on producting the foreign exchange encashment certificate in any freely convertible currency, invoice and a letter from association concerned.
3. In case the value of jewellery/precious/semi precious stones exceeds the limit of US$ 10,000/- the normal prescribed export procedure of these items shall be followed.
Detailed process:
Now FATF imposed further restrictions on import and export in gems, jewellery sector.
profit.pakistantoday.com.pk
The gem extractors and jewellery manufactures are mostly semi-educated cottage based industrialists. These small industrialists need guidance and training while the institution which is supposed to give business plans, support, training and guidance has not updated its website since 2003 or 20 years!!!
smeda.org
In 2006 Pakistan formed a company to facilitate gems and jewellery sector with the help of USAID, they also have not done something since 2016 as per their website:
India’s gems and jewellery exports reached US$ 39.14 billion in 2021-22, a 54.13% rise from the previous year. In October 2022, India’s gems and jewellery exports was at US$ 1.48 billion. The Government of India is aiming at US$ 70 billion in jewellery export in the next five years (until 2025), up from US$ 35 billion in 2020.
Source: https://www.ibef.org/industry/gems-jewellery-india
Government Initiatives
- India has signed an FTA with the UAE which will further boost exports and is expected to reach the target of US$ 52 billion
- The Government has reduced custom duty on cut and polished diamond and colored gemstones from 7.5% to 5% and NIL.
- Revised SEZ Act is also expected to boost exports of gems and jewellery.
- In September 2021, Ms. Anupriya Patel, Minister of State for Commerce and Industry said that reforms such as the revamped gold monetisation scheme, reduction in import duty of gold, hallmarking and others would help the industry grow. The market export target is US$ 43.75 billion for 2021
- The government has reduced import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum & Pallidum (from 12.5% to 10%) to bring down the prices of precious metals in the local market.
- Indian Government made hallmarking mandatory for Gold Jewellery and Artefacts. A period of one year is provided for implementation i.e. till January 2021..
- In December 2020, All India Gem and Jewellery Domestic Council (GJC) welcomed the decision to make hallmarking compulsory from June 2021 in a phased manner; urged the government to examine the key concerns of the industry for smooth implementation of the initiative.
- Hallmarking of gold jewellery is set to begin from June 15, 2021. In view of the COVID-19 pandemic, the government accepted request of stakeholders to provide jewellers some more time to prepare for implementation and resolve issues. Earlier, the date of implementation was June 01, 2021
- In December 2020, the Finance Ministry notified that the amendment under Prevention of Money Laundering Act (PMLA), notifying dealers in precious metals and stones, will maintain records of cash transactions worth Rs. 10 lakh (US$ 13.61 thousand) or more cumulatively with a single customer.
I contrast the sector exports are not encouraging for Pakistan from last couple of years. Once the export was $400million in 2014. But since then the exports declined gradually and reached to the worst level of $10 million in June, 2022.
This tells the whole story of the sector. In addition to this, the major portion of export of this sector constitutes of “articles of jewelry” which is the raw form. It is an indication of lack of value addition and limited infrastructure in the sector and also coupled with more issues as well.
PROCEDURE FOR EXPORT OF GOLD JEWELRY AND PRECIOUS / SEMI-PRECIOUS STONES AND IMPORT FACILITY PROVIDED AGAINST EXPORT THEREOF.
Simplified:
If you want to export a gold ornament or a stone
- Bring your parcel to air port to excise authorities they will weigh and categorise the quality and determine a fee, pay the fee and send.
- STOP!! you have to registered first with EPB before bringing the parcel.
- STOP!! you have to obtain the recommendation of All Pakistan Gem Merchants & Jewellery Association; and All Pakistan Commercial Exporters Association of Rough and Unpolished precious and Semi-Precious Stones before registering with Export promotion Bureau.
- STOP!! you have to get NOCs from 19 agencies including SBP becoming member of All Pakistan Gem Merchants & Jewellery Association; and All Pakistan Commercial Exporters Association of Rough and Unpolished precious and Semi-Precious Stones.
Import of gold for re-export in the form of gold jewellery shall be governed by the two schemes namely (1) Entrustment Scheme (2) Import against Export Performance.
- You can't import raw gold ore and add value to it in Pakistan, you have to import 99.99% pure gold and then export it.
- You have find a buyer who would willing to pay 25% extra for shaping 99.99% pure gold into an bangle or chain etc. else you would not be allowed to export this gold.
If a foreigner traveler/touraist want to buy jewlery or gem or stone from a local shop.
1. Arrangements shall be made by the exporters and customs authorities to enable buyers to personally take away export parcels.
2. Foreign nationals and overseas Pakistanis can take out personally gold jewellery/precious/semi precious stones upto the US$ 10,000/-(US Dollars ten thousand only) on producting the foreign exchange encashment certificate in any freely convertible currency, invoice and a letter from association concerned.
3. In case the value of jewellery/precious/semi precious stones exceeds the limit of US$ 10,000/- the normal prescribed export procedure of these items shall be followed.
Detailed process:
Now FATF imposed further restrictions on import and export in gems, jewellery sector.
FATF conditions restrict export in gems, jewellery sector
ISLAMABAD: Pakistan on Wednesday restricted exports in the gems and jewellery sector in an effort to meet the Financial Action Task Force’s (FATF) conditions for removing the country from its grey l
profit.pakistantoday.com.pk
The gem extractors and jewellery manufactures are mostly semi-educated cottage based industrialists. These small industrialists need guidance and training while the institution which is supposed to give business plans, support, training and guidance has not updated its website since 2003 or 20 years!!!
Gems & Jewellery Sector
Small and Medium Enterprises Development Authority - SMEDA, Premier institution of the Government of Pakistan under Ministry of Industries & Production. SMEDA was established in October 1998 to take on the challenge of developing Small & Medium Enterprises (SMEs) in Pakistan.
smeda.org
In 2006 Pakistan formed a company to facilitate gems and jewellery sector with the help of USAID, they also have not done something since 2016 as per their website:
Introduction | PGJDC - Pakistan Gems and Jewellery Development Company PGJDC
PGJDC - Pakistan Gems and Jewellery Development Company PGJDC
www.pgjdc.org
