GJEPC petitions against U.S. proposed 25% import duty levy
The Gem and Jewellery Export Promotion Council has urged India’s jewellery industry to petition against the U.S.’s proposed imposition of a 25% duty levy on certain categories of gems and jewellery exports from India.
The GJEPC called the newly proposed U.S. tax rates “discriminatory” at an open forum on April 17, the GJEPC reported on its website on April 21. The jeweller’s association believes the proposed measure is retaliatory and would cause significant disruption to Indian exports to the country.
“India imposed a 2% equalisation levy on online transactions done from abroad and the U.S. Government in retaliation is right now cautioning that it may impose an import duty till 25% on some category of gem and jewellery imports from India,” said GJEPC chairman Colin Shah at the event, the GJEPC reported on its website.
The proposed rates would affect India, the UK, and Turkey. Product categories which the proposed levy would affect include gold mixed link chains, unstrung precious and semi-precious stones, jewellery made from base metals clad with precious metals, and unstrung synthetic precious and semi-precious stones.
“The U.S. is India’s major export market for gem and jewellery products. Exports of around $9.3 billion go to the U.S each year, accounting for a quarter of the total gem and jewellery exports of $36 billion from the country,” said the GJEPC’s executive director Sabyasachi Ray.
“If the proposed action of raising tariff rates gets implemented, this would adversely impact gem and jewellery exports of around $46-53 million and be another setback to one of the most labour-oriented export sectors of the country.”
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