The government has decided to delay the implementation of new rules on how much gold, silver, and platinum can be wasted during jewellery manufacturing. These rules were supposed to come into effect immediately but are now pushed back to July 31, 2024. This decision was made in response to concerns raised by the industry.
The Directorate General of Foreign Trade (DGFT) announced this delay on Tuesday, May 28, just a day after the original notification was issued on May 27. The revised rules aimed to significantly reduce the amount of permissible wastage in jewellery making.
According to the new guidelines, the allowed wastage for plain gold and platinum jewellery would decrease from 2.5% to 0.5%, and for studded jewellery from 5% to 0.75%. The wastage allowance for medals and coins was also set to be reduced by half, from 0.2% to 0.1%.
However, these changes faced opposition from the gems and jewellery industry, leading the government to reconsider the timeline for implementation. The DGFT stated that it will now give the Gem and Jewellery Export Promotion Council (GJEPC) and other stakeholders one month to submit their views and data regarding the revised norms.
These revised norms impact both mechanised and non-mechanised manufacturing processes, affecting the export sector significantly. The delay provides an opportunity for stakeholders to adjust to the new standards, ensuring a smoother transition without immediate disruptions.