Tariff hike on cut and polished diamond Import!

Overall increases 2.5 to 5% duty on GJ items!

Tariff measures taken to curb

The imports of non-essential items

In an endeavor to strengthen Indian Rupee & to halt a growing CAD issue, the Union Government has taken a decision to hike up the Import duty on choicest 19 items. Out of these 19 items about six items are related to GJ (Gem-n-Jewellery) Industry & trade.

The Central Government has taken tariff measures, by way of increase in the basic customs duty, to curb import of certain imported items. These changes aim at narrowing the current account deficit (CAD).

In all the customs duty has been increased on 19 items, here are six which is related to GJ Industry & Trade:

S. No.	Item	Tariff code (HSN)	Basic customs duty
			From	To
1	Non industrial diamond (other than rough diamonds), i.e., cut and polished diamond	71	5	7.5
2	Diamonds-semi processed, half cut or broken	71	5	7.5
3	Lab grown diamonds	71	5	7.5
4	Cut and polished Colored gemstone	71	5	7.5
5	Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal	7113	15	20
6	Articles of Goldsmith or silversmith wares and parts thereof of precious metal or of metal clad with precious metal	7114	15	20

According to the release, Notifications are being issued. These changes in rates of basic customs duty (BCD) will be effective from today, 27.09.2018 (i.e., midnight of 26^th September/27^th September, 2018). The total value of imports of these 19 items in the year 2017-18 was about Rs  86000 Crore.