GJEPC Calls for Customs Overhaul and Concessional Credit to Boost Exports

GJEPC Calls for Customs Overhaul and Concessional Credit to Boost Exports

Issue: To address global competition and the impact of trade barriers, the Gem and Jewellery Export Promotion Council (GJEPC) submitted key policy recommendations to the government, focusing on modernizing the Customs regime and providing financial support to enhance India’s competitiveness in the global gems and jewellery trade.

Facts:

• The GJEPC Chairman presented key policy recommendations during a meeting with Prime Minister Narendra Modi and industry representatives.
• The industry aims to maintain global competitiveness with trade hubs like the UAE and Belgium.

Decision:

The GJEPC called for a Customs Act overhaul, the provision of concessional export credit, the formation of a new National Gem and Jewellery Park Policy, and the immediate passage of the SEZ Act amendment.

Key TakeDowns (Policy Recommendations):

• Customs Overhaul and Digitization: The GJEPC requested a modernization of the Customs Act, 1962, including the implementation of an advanced Risk Management System and AI-based digital appraisals. The goal is to make customs procedures faster, more transparent, and cost-efficient. * Concessional Export Credit: The Council requested a special scheme offering export credit at concessional rates, emphasizing that extending interest subvention and ECGC premium subsidies would benefit MSME units and enhance cost competitiveness for exporters.
• SEZ Act Amendment: GJEPC urged the government to expedite the passage of the SEZ Act amendment, which would allow limited domestic sales with fair duty adjustment. This would enable optimal utilization of idle capacity during off-seasons.
• National Policy: A National Gem and Jewellery Park Policy was proposed to strengthen the domestic manufacturing ecosystem and attract global investment into India’s value chain.
• Procedural Simplification: The Ministry of Finance was requested to simplify export-import procedures and customs processes further to ensure ease of doing business on par with global trading destinations.