International Institute of of Foreign Trade International Institute Foreign Trade and Research and Research

Subject:- Presentation on Gemstone Subject:-Presentation on

Submitted To: Submitted To: Prof. Nidhi bajaj Prof. Nidhi Bajaj

Submitted By: Submitted By: Rishi srivastava Rishi Srivastava Sanjeev kumar Sanjeev Kumar Sandeep nimesh Sandeep Nimesh Mayank raghuvanshi Mayank Raghuvanshi Sandeep dhaneriya Sandeep Dhaneriya

Gemstone
A gemstone, gem or also called precious or semi-precious stone is a highly attractive and valuable piece of mineral, which when cut and polished is used in jewelry or other adornments. Some minerals that are too soft to be generally applied in jewelry may still be considered a gemstone because of their remarkable color, lustre or other physical properties that have aesthetic value. Clarity is another characteristic that lends value to a gemstone.

Diamond is an allotrope of carbon. It is the hardest known natural material. Its

hardness and high dispersion of light make it useful for industrial applications and jewelry. Diamonds are specifically renowned as a material with superlative physical qualities.They are commonly judged by the four Cs: carat, clarity, color, and cut.

Aquamarine Lat. aqua marin, "water of the sea" is a gemstone. The biggest
aquamarine ever mined was found at the city of Marambaia, Minas Gerais, Brazil, in 1910. It weighed over 110 kg, and its dimensions were 48.5 cm long and 42 cm in diameter. Aquamarine is the official state gem of Colorado

Emerald is beryl, green coloured .Beryl has a hardness of 7.5 - 8 on the 10 point.
The origin of the word "Emerald" is said to be a Sanskrit word meaning "green".

Pearl is a hard, rounded object produced by certain animals.Pearls can be used in

jewelry and also crushed in cosmetics or paint formulations. The Pearl of Lao Tzu also referred to as Pearl of Lao Tze and Pearl of Allah is the largest known pearl in the world, measuring 9.45 inches in diameter and weighing 6.4 kilograms.

Ruby is a light pink to blood red gemstone, Its name comes from ruber, Latin for red.
It is considered one of the four precious stones, together with the sapphire, the emerald and the diamond.

Sapphire is the non red variety of the mineral. It can be found naturally or
manufactured in large crystal boules for varied applications, including infrared optical components, watch faces, high-durability windows, and wafers for the deposition of semiconductors.

Foreign Trade policy for Gems and Jewellery Foreign Trade policy for Gems and Jewellery
Foreign Trade policy for Gems and Jewellery
Scheme forfor GemsJewellery Scheme Gems and and Jewellery Scheme for Gems and Jewellery Exporters of gems and Jewellery can import / procure duty free inputs for Exporters of gems and Jewellery can /import /duty free inputs for inputs procure duty free manufacturing. Exporters of gems and Jewellery can import procure for manufacturing. manufacturing. Replenishment Authorisation Replenishment Authorisation Replenishment Authorisation Exporters may obtain Replenishment (REP) Authorisations from RA. An application for REP Replenishmentmay be Authorisations from RA. Exporters may obtain Authorisation (REP) made in ANF 4I Exporters may obtain Replenishment (REP)in ANF 4I Authorisations from RA. alongwith documents prescribed thereinmay be Application shall be filed within six An application for REP Authorisation to RA. made An application for prescribed therein the export be madeare be filed In case months following the month during whichto RA. Application shall realised.within six alongwith documents REP Authorisation may proceeds in ANF 4I alongwith documents prescribed therein takeproceeds are realised. In case where payment is received in advance and exportsto RA. Application shall be months following the month during which the export place subsequently, application for REPreceived in advance be the month six months followingexport where within six Authorisation shall and exports take place subsequently, the filed payment is months following filed within during which the month duringfor REPexportsIn caseshall be filed within is received in advance and application are realised. are made. proceeds which Authorisation where payment six months following the month during which exports are made.

exports take place subsequently, application for REP Authorisation shall be filed within six months following the month during which exports are made.

Nominated Agencies Nominated Agencies

Nominated agencies are MMTC Ltd, Handicraft and Handloom Nominated agencies are MMTC Ltd, Handicraft and Handloom Export Corporation (HHEC), State Trading Corporation (STC), the Export Corporation (HHEC), State Trading Corporation (STC), the Project and Equipment Corporation of India Ltd (PEC), Premier Project and Equipment Corporation of India Ltd (PEC), Premier Trading House and any other agency Trading House and any other agency authorised by RBI. authorised by RBI.
Value Addition Value Addition Under scheme for export of Gem,minimum value addition shall be 4%. Under scheme for export of Gem,minimum value addition shall be 4%. Gem Replenishment Authorisation Gem Replenishment Authorisation Gem REP Authorisations shall be valid for import of precious Gem REP Authorisations shall be valid for import of precious stones, semi-precious and synthetic stones and pearls.Gem REP Authorisations issued stones, semi-precious and synthetic stones and pearls.Gem REP Authorisations issued against export of gold / silver / platinum jewellery articles, shall also be valid for import against export of gold / silver / platinum jewellery articles, shall also be valid for of cut and polished polished precious / semi-precious stones other than upto 10% of CIF import of cut and precious / semi-precious stones other than emerald emerald upto value of Authorisation Authorisation within its overall CIF value. Gem REP shall be 10% of CIF value of within its overall CIF value. Gem REP Authorisations freely transferable. be freely transferable. Authorisations shall

Proof of Exports Proof of Exports Exporter has to furnish the proof of exports, by furnishing following documents: Exporter has to furnish the proof of exports, by furnishing following documents: (a) E.P copy of the shipping bill; (a) E.P copy of the shipping bill; (b) Customs attested invoice; (b) Customs attested invoice; (c) Bank certificate of export. (c) Bank certificate of export. Export Against Advance Authorisation Export Against Advance Authorisation An Advance Authorisation may be granted for duty free import of Gemstone. Such An Advance Authorisation may be granted for duty free import of Gemstone. Such authorisations shall carry an export obligation to be fulfilled. authorisations shall carry an export obligation to be fulfilled. EO will be required to be fulfilled within 120 days from date of EO will be required to be fulfilled within 120 days from date of import of each consignment against Authorisation. import of each consignment against Authorisation. No further extension in EO period will be allowed. Advance Authorisation holder No further extension in EO period will be allowed. Advance Authorisation holder may may also import gold as replenishment after completion of exports. also import gold as replenishment after completion of exports. Advance Authorisation holder may obtain gold / silver / platinum Advance Authorisation holder may obtain gold / silver / platinum from nominated agencies. from nominated agencies.

Diamond Imprest Authorisation Diamond Imprest Authorisation

Diamond Imprest Authorisation for import of cut and polished Diamond Imprest Authorisation for import of cut and polished diamonds including semi processed diamonds, half cut diamonds, diamonds including semi processed diamonds, half cut diamonds, broken in any form, for mixing with cut and polished diamonds or broken in any form, for mixing with cut and polished diamonds or for export as it is, may be issued for export of cut and polished for export as it is, may be issued for export of cut and polished diamonds and shall carry an EO. diamonds and shall carry an EO.
Application:Application:For the scheme, an application in ANF 4J, alongwith prescribed documents therein shall For the scheme, an application in ANF 4J, alongwith prescribed documents therein shall be submitted to RA concerned. be submitted to RA concerned. Export Obligation Export Obligation EO against each consignment shall be fulfilled within a period of EO against each consignment shall be fulfilled within a period of five months from date of clearance of such consignment through five months from date of clearance of such consignment through Customs. However, at no point of time, importer shall be required Customs. However, at no point of time, importer shall be required to maintain records of individual import consignments towards fulfillment of EO to maintain records of individual import consignments towards fulfillment of EO

Personal Carriage of Import Parcels Personal Carriage of Import Parcels

Personal carriage of gems and jewellery import parcels by an Indian importer /foreign Personal carriage of gems and jewellery import parcels by an Indian importer /foreign national may be permitted. national may be permitted.
Duty free import of samples Duty free import of samples Duty free import of gems and jewellery samples upto Rs 3 lakhs Duty free import of gems and jewellery samples upto Rs 3 lakhs or 0.25% of the average of last three years export turnover of or 0.25% of the average of last three years export turnover of gems and jewellery items, whichever is lower, shall be allowed. gems and jewellery items, whichever is lower, shall be allowed. Private / Public Bonded Warehouse Private / Public Bonded Warehouse Private / Public Bonded Warehouses may be set up in SEZ / DTA Private / Public Bonded Warehouses may be set up in SEZ / DTA for import and re-export of cut & Polished diamonds, cut & polished coloured for import and re-export of cut & Polished diamonds, cut & polished coloured gemstones, uncut & unset precious & semiprecious gemstones, uncut & unset precious & semiprecious stones, subject to achievement of minimum VA of 5%. stones, subject to achievement of minimum VA of 5%.

Export by Post In case of exports through Foreign Post Office (including via Speed Post), value of jewellery parcels shall not exceed US$50000 and 20 kg. by weight. At the time of exports, exporter shall submit following documents: (i) Shipping bills or invoice presented at foreign Post Office; (ii) Certificate from nominated agencies indicating price at which gold / silver / platinum was booked or given on outright sale basis or loan basis; (iii) Three copies of invoice. Statistics
Total No. of Units in Gems And Jewellery No. of Units in Organised sector
No. of Units in Organised sector

11136
11136
817 10319 Gems and Jewellery industry is

Total No. of Units in Gems And Jewellery

817

No. of Units in Small Scale sector No. of Units in Small Scale sector Concentrations of Units in
Concentrations of Units in India

10319

Gems and JewellerySurat, Bhavnagar, industry is concentrated Ahmedabad, concentrated in , , in Ahmedabad, Mahesana, Navsari, Mahesana, Navsari, Palanpur and Palanpur Valsad in Valsad in Gujarat.and Mumbai in and and Mumbai in
Maharashtra.

Export of cut & Polished precious and semi-precious stones for Export of cut & Polished precious and semi-precious stones for treatment and reimport treatment and reimport Gems & Jewellery exporters shall be allowed to export cut and polished precious and Gems & Jewellery exporters shall be allowed to export cut and polished precious and semi-precious stones for treatment and re-import without payment of Customs duty as semi-precious stones for treatment and re-import without payment of Customs duty as per customs rules and regulations per customs rules and regulations Re-importation would be allowed from the same port from where stones were exported Re-importation would be allowed from the same port from where stones were for treatment. On re-importation, customs authority shall cross verify the details with exported for treatment. On re-importation, customs authority shall cross verify the the export documents. A maximum time period of 120 days shall be allowed for redetails with the export documents. A maximum time period of 120 days shall be import. allowed for re-import. However in case treated precious stones or semi-precious stones are meant for domestic However in case treated precious stones or semi-precious stones are meant for consumption, re-imported consignment shall be allowed by Customs on payment of domestic consumption, re-imported consignment shall be allowed by Customs on duty on fair cost of repairs carried out including cost of materials used in repairs, payment of duty on fair cost of repairs carried out including cost of materials used in insurance and freight charges, both ways.Imported items shall be re-exported. repairs, insurance and freight charges, both ways.Imported items shall be re-exported.

ITC (HS) Code:-

Tarrif item code

Item descp.

Unit Kg.

Basic 10.00

Effect ACD CND CESS 10.00 4 10 0.84

Total 34.84

Policy Free

7104 90 00 Gemstone
(diamond,s apphire,etc)

Import procedure
Goods imported in an aircraft /a vessel attract customs duty and customs clearance Goods imported in an aircraft /a vessel attract customs duty and customs clearance formalities of the landed goods have to be followed by the importers. formalities of the landed goods have to be followed by the importers. For the goods which are offloaded, the importers have the option to clear the goods for For the goods which are offloaded, the importers have the option to clear the goods for home consumption after payment of the duties leviable or to clear them for home consumption after payment of the duties leviable or to clear them for warehousing without immediate payment of the duties leviable. Every importer is warehousing without immediate payment of the duties leviable. Every importer is required to file,an entry (which is called Bill of entry) for home consumption or required to file,an entry (which ias called Bill of entry) for home consumption or warehousing in the form as prescribed by regulations. warehousing in the form as prescribed by regulations.

The Bill of entry is to be filed in quadruplicate- original and duplicate are meant for The Bill of entry is to be filed in quadruplicate- original and duplicate are meant for customs, third copy is for the importer and fourth copy is for the bank for making customs, third copy is for the importer and fourth copy is for the bank for making remittances. On the body of the bill of entry, the purpose for which it will be used is remittances. On the body of the bill of entry, the purpose for which it will be used is generally mentioned. generally mentioned. Under manual procedure, along with the bill of entry the following documents are also Under manual procedure, along with the bill of entry the following documents are also generally required to be filed by the importer or his representative: generally required to be filed by the importer or his representative:

Signed invoice Signed invoice Packing list Packing list Bill of lading or Delivery order/Airway Bill Bill of lading or Delivery order/Airway Bill GATT declaration form duly filled in GATT declaration form duly filled in License wherever necessary License wherever necessary Letter of credit/Bank Draft/ wherever necessary Letter of credit/Bank Draft/ wherever necessary Insurance document Insurance document Import licence Import licence Industrial licence, if required Industrial licence, if required Test report in case of chemicals Test report in case of chemicals Adhoc exemption order Adhoc exemption order DEEC Book/DEPB in original DEEC Book/DEPB in original Catalogue, Technical write up, literature in case of machineries , ,spares or chemicals Catalogue, Technical write up, literature in case of machineries spares or chemicals as may be applicable as may be applicable Certificate of origin, if preferential rate of duty is claimed Certificate of origin, if preferential rate of duty is claimed No commission declaration. No commission declaration. After noting of the bill of entry, the same is sent to the appraising section for After noting of the bill of entry, the same is sent to the appraising section for assessment functions, payment of duty etc assessment functions, payment of duty etc

ASSESMENT and CLEARANCE: The document details filed by the importer or his authorized agent are checked and assessed by custom authority and then the goods are cleared. The following are the procedures in this connection: The Bill of Entry submitted by importer is tallied with the import manifest submitted by the shipper. If If variance is is found between two, further clarification for the by the shipper.anyany variancefound between thethe two, further clarification for the difference are called for customs authorities. On presenting of Bill of Entry, date of presentation is noted, The Bill of entry is then send to the appraising department for examination. The examiners carry out physical examination of the goods. Package are opened and examined on a test check sample basis on the basis of which examination report is prepared. The appraiser classifieds the goods, determines the custom value, rate of duty applicable and verifies that the imports do not violate any provision of law. The Importer must pay the amount of duty so determined in cash or by bank draft for clearance of goods.Once the duty is assessed, the Bill of Entry is returned to the impoter for payment of duty. of duty. Duty paid be paid days after Bill of Entry is returned, impoter for payment Duty must be must within 7 within 7 days after Bill of Entry is otherwise interest at the rate of 20% p.a 20% p.a is payable. Sometimes, if all returned, otherwise interest at the rate ofis payable. Sometimes, if all documents are in order and the authorities are concivee that are concivee that there is no violation documents are in order and the authorities there is no violation of any law, the of assessment assessment without physically examining the goods. any law, themay be donemay be done without physically examining the goods.

Import Control: Import Control:

After assessment, the Bill of Entry is sent to the License Section where it is checked After assessment, the Bill of Entry is sent to the License Section where it is whether the import complies the export-import policy of the Government. If any license checked whether the import complies the export-import policy of the Government. If is required for the import, it is verified whether the goods have been imported against a any license is required for the import, it is verified whether the goods have been proper import license. Such import license is givenin duplicate, one copy for customs imported against a proper import license. Such import license is givenin duplicate, purpose and another exchange control copy for clearance of foreign exchange by bank. one copy for customs purpose and another exchange control copy for clearance of foreign exchange by bank. Out of Customs Chart Order:
Out of Customs Chart Order: After all the above formalities are completd, the customs officer will issue out of customs oreder. Goods can be removed only on receipt of such order. After all the above formalities are completd, the customs officer will issue out of customs oreder. Goods can be removed only on receipt of such order.

Manufacturers and suppliers fancy beads, designer glass beads, mix glass beads, semi precious stone beads, agate beads, bone beads, wooden beads, metal beads, dotted glass beads, round glass beads and bumpy glass beads. Address: 69, Natraj Puram, Kamla Nagar, Agra - 282 005, India

Engaged in Importing semi precious stone necklaces, gemstone bracelets, precious stone beads necklaces, studded earrings, precious stone studded necklaces, gemstone bead bracelets, precious stone bracelets and other precious stone jewelry. Address: C-49, Vivek Vihar, Phase - I, Delhi - 110 095, India

Manufacturers, impoter and exporters of semi-precious stone beads, handmade glass beads, bone beads, horn beads, wooden beads, metal casting beads and leather beads. Address: RZ-156, Sayed Nangloi, New Delhi - 110 087, India

Engaged in importing and exporting of semi precious stone jewellery that includes fashion stone rings, cut stone earrings, beaded fashion bracelets, fashion metal cuff, beaded fashion necklaces, stone beaded rings and beaded fashion bangles. Address: D 159, Shastri Nagar, Behind Medical College, Jodhpur - 342 003, India

Impoter and exporters of all kinds of beads like stone beads, gemstone beads, diamond beads, precious stone beads, semi precious stone beads, emerald stone beads, ruby stone beads, sun stone beads and other beads. Address: Tulip bldg., 5th Flr, Flat # 12, 3rd Pasta lane, Colaba, Mumbai - 400 005, India

Manufacturing and supplying precious and semi precious stone jewellery, precious silver jewellery, semi precious silver jewellery including studded silver earrings, studded silver rings, studded silver necklaces, semi precious bracelets and pendants. Address: Behind Jewels Emporium, Near Panch Batti, M.I. Road, Jaipur - 302 001, India

Manufacturer, expoter and impoter of semi precious stones, semi precious decorative stones, semi precious hard stones, semi precious stone table tops, semi precious stone tiles, semi precious sodalite stone tiles, semi precious lapis lazuli stone tiles etc. Address: 364, "Shiv Kripa" Sector #9 Road, Savina, Udaipur - 313 002, India

Manufacturer, impoter and exporter of semi-precious stones, precious stones, stone jewelry, semi-precious stone jewely, fashion jewelry, precious stone jewelry and diamond studded jewelry. Also offers gold jewelry and silver jewelry. Address: Old # 41/2, New # 86, Samy Pandaram Street, Chintadripet, Chennai - 600 002, India

Manufacturer, impoter and exporter of semi precious stone jewellery like precious chokers, precious stone necklaces, beaded bracelets, coloured stone earrings and gemstone anklets and variety of designer stone jewellery. Address: A- I-22 Ansal's Colony, Shastri Nagar, Meerut - 250 005, India

Exporters of semi-precious stone such as agate,green aventurine,rose quartz,tiger eyes etc. Address: No.388, South Hubin Road, Xiamen - 821 124, China

Exporters of semi precious stones. Address: 90, Coventry Street, Kidderminster - DY10 2BH, United Kingdom

Offering diamonds precious semi precious stones. Address: 10/W. 46th Street 8th Floor, New York - 10036, United States of America

Exporters of all kinds of brazilian rough stones, gifts, mica etc. Address: P. O. Box 24065, Maracana, Rio De Janeiro - 2011010, Brazil

Bibliography: FTP 2004-2009

HBP 2004-2009 www.wikipedia.com www.indiamart.com Class notes