Govt Revises Wastage Norms For Gold, Silver, Platinum Jewellery Exports
The government initially reduced these limits in May, prompting concerns from industry leaders, who argued the new standards were too stringent
The Indian government has updated the permissible wastage norms for the export of gold, silver, and platinum jewellery, setting new guidelines that will take effect from January 1, 2025. The revised standards, welcomed by the jewellery industry, reflect adjustments following industry feedback on earlier norms introduced in May.
Wastage norms regulate the allowable amount of metal loss during the manufacturing process for export purposes. The government initially reduced these limits in May, prompting concerns from industry leaders, who argued the new standards were too stringent. Following a series of consultations, the Commerce Ministry deferred implementing the May rules until December and has now issued modified guidelines.
"The wastage permissible and standard input-output norms (SION) for jewellery exports have been updated," stated the Directorate General of Foreign Trade in a public notice. SION establishes the amount of metal input required per unit of jewellery output, helping maintain strict control over duty-free imported metal, ensuring it does not enter the domestic market.
The updated wastage norms for jewellery exports vary based on whether the items are handmade or machine-made. For handmade jewellery, the permissible wastage for gold and platinum has been set at 2.25 per cent, reduced from the previous 2.5 per cent, while for silver, it is now 3 per cent, down from 3.2 per cent. In the case of machine-made jewellery, the allowable wastage is 0.45 per cent for gold and platinum, and 0.5 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 2.8 per cent.
These norms also apply to exported idols, coins, medallions, and other crafted items made from these metals. By maintaining export compliance, the wastage limits ensure that duty-free metals used in manufacturing do not leak into the domestic market.
The jewellery industry had requested realistic standards that align with actual manufacturing processes and a transition period to adapt to the changes. With these updates, exporters have clear guidelines moving into 2025, balancing production efficiency with compliance to prevent misuse of duty-free imports.
