GJEPC applauds USTR's temporary suspension of tariffs on Indian jewellery
The Gem and Jewellery Export Promotion Council has praised the United States Trade Representative decision to suspended tariffs on goods from countries including India for 180 days.
As the U.S. is a major export market for India’s gem and jewellery industry, the USTR’s temporary suspension of tariffs will have a significant effect on the industry, according to the GJEPC.
The USTR’s temporary tariff suspension is designed to allow more time to complete the ongoing multilateral negotiations on international taxation at the Organisation for Economic Co-operation and Development and in the G20 process and applies to India, Austria, Italy, Spain, and Turkey.
“I would like to thank USTR for giving the Indian jewellery industry an opportunity for sharing our views at the public hearing last month and considering our representation,” said GJEPC chairman Colin Shah, the trader’s body reported on its website.
“Most of the speakers at the hearing were of the view that a multilateral solution would be a preferable option, as a unilateral action undermines and weakens the Dispute Settlement Mechanism under WTO. The suspension of tariff on goods for up to 180 days is an indication that the USTR is willing to wait till a multilateral solution is found for Digital Service Taxes.”
Shah thanked the Government of India, especially the Ministry of Commerce and Industry, for its representations made to the USTR on the matter.
“The imposition of the proposed 25% import duty on 17 Indian jewellery items would have immensely impacted this labour intensive sector with loss of jobs and livelihoods and a shift of business to countries such as China and Mexico,” said Shah.
"American jewellery companies also bank on Indian companies to fund their business by giving long credit and memo facilities, which would have major repercussions.”
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