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THOUGH its measures seem favourable, the Exim policy's impact will depend on actual implementation, sources in the gem and jewellery export industry, said.
As announced today by the Union Commerce Minister, Mr Murasoli Maran, the policy seeks to reduce customs duty on import of rough diamonds to zero per cent from five per cent. The licensing regime for rough diamonds is also being abolished.
``The licensing regime was anyway quite redundant since the value of licences had fallen considerably. While this involved paper work the government was not earning any revenue on this,'' Mr Praveenshankar Pandya, former chairman of Gem and Jewellery Export Promotion Council (GJEPC) said.
``The doing away of the licensing system will definitely reduce transaction cost for the exporter. Besides, with the red tape being done away foreign suppliers would be inclined to look at India favourably,'' Mr Sanjay Kothari, Chairman, GJEPC, said.
According to Mr Kothari, the policy's overall thrust is to help the gem and jewellery industry as a trading centre for uncut diamonds.
Currently, India is a leading centre for cut and polished diamonds. The Exim Policy has reduced value addition norms for export of plain jewellery from 10 per cent to seven per cent and value addition on export of all mechanised unstudded jewellery has been reduced to three per cent from five per cent.
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