<strong>Gem and Jewellery Export Promotion Council (GJEPC)</strong>

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<strong>Mumbai diamond trade tangles in the cobwebs of Octroi</strong>

A battle between diamond traders and Brihanmumbai Municipal Corporation (BMC) over payment of octroi seems to have been going on relentlessly for quite some time now.While inept method of octroi collection is harassing diamond merchants, BMC prefers to stay inactive at the background. But unfortunately, it is only the diamond business which is facing the consequences making trade difficult in Mumbai.Octroi is essentially a local tax collected by the municipality on goods brought into a district for consumption. Presently, it is pegged at 2 percent but traders have been struggling to bring it down.

Besides, out of the 4,000 diamond merchants, only 5 percent have been enlisted with the BMC which implies that octroi is not applicable on all transactions between traders and only a handful of them end up paying the tax generating as much as Rs40-50 million.According to experts the total value of diamond imports is roughly Rs40,000 million. Jewelers have opined that if one paisa was collected for every Rs0.001 million of this value, it could help the BMC recover the octroi revenues. However, the BMC did not accept this proposal. States like Gujarat and Rajasthan have completely got rid of this tax system on diamonds which makes Mumbai less attractive even domestically.

Mr Sanjay Kothari, Chairman of Gem and Jewellery Export Promotion Council (GJEPC) told <a href="http://www.fibre2fashion.com/" target="_blank">Fibre2fashion</a>, “We do not object from paying octroi but it should be 0.10 percent as imposed on gold but even this is not being considered by the BMC.”It is quite obvious that if it continues this way, the octroi duty structure will prove to a major hurdle in the way of making Mumbai a diamond trading hub

<strong>India</strong><strong>: JJA &amp; GJEPC members visit IIGJ Mumbai</strong>

A delegation from Japan Jewellery Association (JJA) headed by Mr. Imanishi Chairman, JJA alongwith three members accompanied by Mr. Atul Parekh GJEPC Co-ordinator visited IIGJ Mumbai.They were briefed and taken around the Institute by Col. (Retd) S.K.Arora , Head of the Institute. They were highly impressed with the State of the art training facilities available at IIGJ.

The purpose of their visit was to understand various facilities available in India in the sector of Gem &amp; Jewellery and to create awareness in Japan and also explore the areas of mutual co-operation. They also took an oppurtunity to meet Ms.Yuko Ogawa of Japan who successfully completed Basic Jewellery Design course, CAD/CAM Rhino Course &amp; Casting Course. Ms. Yuko Ogawa is a daughter of one of the jewellery designer of Japan. Indian Institute of Gems &amp; Jewellery<strong> </strong>

<strong>India</strong><strong>: GJEPC concerned by DTC pruning key sight holders</strong>

The Gem &amp; Jewellery Export Promotion Council (GJEPC), the apex body of the Indian gem and jewellery trade in India expresses grave concern over De Beers Diamond Trading Company (DTC) announcement of pruning of Indian sight holders from DTC clientele for 2008-2011. The new list has eliminated 25 established sight holders – some of many years’ standing – including eight firms in India and three Indian-owned firms in Belgium and added six new ones, including three from India. This means that 75 firms will receive regular supplies of rough diamonds for a three-year period beginning next year, down from the current 94.

While the inclusion of three new Indian firms in the sight holder list is welcomed, the pruning of eight Indian firms defies analysis in the GJEPC’s view. While the DTC has mentioned the cut down on the list of sight holders due to a global shortage of rough diamonds, it has confounded its own reasoning by adding six new clients and drastically increasing the allocations of rough diamonds to several existing firms.

While a shortage of rough diamonds worldwide is, indeed a reality, the GJEPC estimates that the shortfall will be no more than 10% of current global demand. The cuts instituted by the DTC impact processing capacity far above this shortfall – almost 25% of current installed capacity in India.According to Chairman, Gem &amp; Jewellery Export Promotion Council, Sanjay A. Kothari, “The concern is on the impact of DTC’s business decision on the industry as a whole

<strong>Pre-Budget Proposal from GJEPC</strong>

The Gems and Jewellery Export Promotion Council (GJEPC) has recently submitted a Pre-Budget Proposal for the year 2008-09 to the Hon’ble Union Finance Minister, Shri P Chidambaram. The council welcomes the Ministry’s efforts for the country’s economy.

GJEPC has great expectations from the budget for the coming fiscal year. The letter also features elaborate views and suggestions, which are most likely to assist overall development of the industries in India