Govt revises wastage norms with regard to export of gold, silver, platinum jewellery

04 Nov 2024 Evaluate

The government revised norms related to the permissible amount of wastage with regard to the export of gold, silver and platinum jewellery. The new norms will be applicable from January 1, next year. The wastage norms are the permissible amount of gold or silver that can be lost during the manufacturing process of jewellery for export. The wastage norms have been slightly adjusted from the earlier norms, released on May 27, after the industry urged the government to look into the issue.

For handcrafted jewellery, the permissible wastage for gold and platinum has been set at 2.25 per cent, while for silver, it is now 3 per cent. In the case of mechanized jewellery, the allowable wastage is 0.45 per cent for gold and platinum, and 0.50 per cent for silver. For studded jewellery, the norms allow 4 per cent wastage for handmade pieces in gold, silver, and platinum, while machine-made studded jewellery is permitted a wastage of 2.80 per cent.

To manufacture jewellery and other items for exports, the precious metals are imported duty-free. Exports by weight must be in line with the amount of metal imported duty-free minus the wastage that can occur at the making stage. The wastage norms are strictly imposed to ensure that the duty-free metal does not find its way to the domestic market.

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