Work hard and you will find success

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GOLDNET.MARKET - “We want and are working to provide business with the opportunity to develop a lot of activity areas”

Today, almost all jewellery companies have their own wholesale websites, online stores, and social media pages. But a year ago, GOLDNET.MARKET, the first jewellery wholesale marketplace appeared in Russia, a new effective tool for the jewellery market...

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Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

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Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

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There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

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Sudden surge in gold jewellery exports from outside SEZs comes under scanner

07 july 2014

India’s gold jewellery (GJ) exports fr om DTA (Domestic Tariff Area) in 2013-14 grew year-on-year by a whopping 141.58% to $5.68 billion. However, such shipments fr om Special Economic Zone (SEZ) shrunk sharply by 66.28% to $5.36 billion in 2013-14 from a healthy $15.9 billion in 2012-13. This trend continued in this fiscal year too. Gold jewellery exports from DTA shot up by 130.61% y-o-y during April-May 2014 to $728.69 million, while such exports from SEZs contracted by 30.19% to $542.72 million.
This surge in GJ exports from outside SEZs at a time when the demand overseas is poor and the resultant plunge in exports from SEZs since March 2013 have now come under the government scanner. The concern now is whether this 'unusual' rise in GJ exports from domestic tariff area (wh ere normal taxes and duties are applicable unlike the SEZs, which are tax/duty-free enclaves) is genuine.
The government is now looking at the possibility of exporters in DTA area fraudulently over-invoicing GJ shipments and sending them to tax havens / low-tax nations or other destinations overseas to claim incentives (including duty-free import entitlements). It is suspected that whatever exports were done are later brought back into the country and after melting the same was used as gold input for further exports. Recurrent use of this method could allow the players to reap huge, undeserved profits.
Incidentally, big exporters like Star Trading Houses (STH) and Premier Trading Houses (PTH) also get the benefit of the RBI's 20/80 scheme (wh ere nominated banks/agencies including some PSUs as well as STHs and PTHs can import gold, provided they ensure that at least 20% of it is exported. Some big exporters in the DTA are reportedly “making a killing” by selling up to 80% of their gold imports domestically at a 6-8% premium (even after paying the 10% duty) as there is a shortage of the yellow metal in the local markets, due to the prevailing import restrictions, as reported in Financial Express. SEZs, on the other hand, do not get any duty entitlement or refund benefits such as duty credit scrips for any exports as these are tax-free enclaves. They are allowed to import gold duty free only for exporting it entirely after the meeting the prescribed value addition norms.

Aruna Gaitonde, Rough&Polished correspondent in India