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Published
Jun 4, 2021
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Jewellers relieved as U.S. suspends additional tariffs on India

Published
Jun 4, 2021

The gems and jewellery sector breathed a sigh of relief as the United States Trade Representative (USTR) decided to suspend taxes on certain services from India and other countries for up to six months.
 

Jewellers relived as US suspends additional tariffs on India - GJEPC- India- Facebook


The U.S. had earlier announced tariffs on India and other countries as part of its equalisation levy/digital services tax on e-commerce companies, including the jewellery sector, but immediately deferred the decision for up to six months to provide additional time to complete the ongoing multilateral negotiations on international platforms.
 
Welcoming the decision, the Gem & Jewellery Export Promotion Council (GJEPC) chairman Colin Shah in a statement said: “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. 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 (DST).”

“The imposition of the proposed 25% import duty on 17 Indian jewellery items would have immensely impacted this labour-intensive sector with a loss of jobs and livelihoods and a shift of business to countries such as China and Mexico,” Shah added.
 
GJEPC, the apex body of the gem and jewellery trade in India, had earlier engaged with several stakeholders and made representations to government officials conveying the implications of the move.

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