DGFT Policy Circular No.28 for Value Addition Norms
In force — no superseding record on file.
Government of India Ministry of Commerce And Industry Department of Commerce Directorate General of Foreign Trade
Policy Circular No. Po Sy /2019-2020
Dated the 27" September, 2019
To All Regional Authorities of DGFT All Members of Trade
Value Addition Norms for availing duty exemption in Gem and Jewellery.
Clarifications has been sought from this Directorate on the value addition calculations as per the provisions of FTP/HBP for export of Gold/silver/platinum jewellery and articles.
Z. Para 4.38 of FTP on Value Addition in Gem and Jewellery is reproduced below: Minimum Value Addition norms for gems andjewellery sector are given in paragraph 4.61 ofHandbook ofProcedures. It would be calculated as under: VA= A-B x 100 B Where
- A = FOB value ofthe export realised/ FOR value ofsupply received. B = Value of inputs (including domestically procured) such as gold/silver/platinum content in export product plus admissible wastage along with value of other items such as gemstone etc. Wherever gold has been obtained on loan basis, value shall also include interest paid in free foreign exchange to foreign supplier.
Further, under para 4.82 (c) for Replenishment scheme it is mentioned, inter-alia, that
"..price shall be actual price at which gold/silver/platinum is purchased by nominated agencies plus permitted service charges levied by nominated agencies shall be included with the price ofgold/ silver/platinum for value addition...."
This has led to seeking of clarification in the matter from this directorate.
2 It is clarified that for the purpose of value addition, inputs in 'B' in para 4.38 mean duty free (either on advance or replenishment basis) gold/silver/platinum content in the export product plus the admissible wastage. 4. This issues with the approval of the DGFT.
in para 4.38 mean duty free (either on advance or replenishment basis) gold/silver/platinum content in the export product plus the admissible wastage. 4. This issues with the approval of the DGFT.
(Vijay Kumar) Additional Director General of Foreign Trade
[Issued from File No. 01/94/180/300/AM19/PC-4]
Verbatim extracted text (OCR/PDF). Older scans and tables may show extraction artifacts — verify against the original for anything you act on.
No analysis generated for this document yet (analysis runs over brief docs + on-demand). Run build_analysis.py --ids 3798 --apply.