February 22, 2021

Export of Gems and Jewellery is permitted through Courier| CBIC clarified through Circular

Central Board of Indirect Taxes and Customs (“CBIC”) has issued a clarification vide Circular No. 52/2020- Customs dated 27th November, 2020, on the query whether gems and Jewellery is allowed to be exported through courier by the Gems and Jewellery Export Promotion Council.

Ambiguity arise due to Regulation No. 2(2)(a)(iv) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010. Relevant extract of such regulation is reiterated below:

“These regulations shall not apply to the following imported Goods requiring testing of samples thereof or reference to the relevant statutory authorities or to export before their clearance, namely precious stone and semi-precious stones, gold or silver in any form.”

Therefore, as per Regulation 2(2)(a)(iv) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, imports of precious and semi-precious stones, gold or silver in any form through courier is restricted. As per regulation 2(2)(a)(iv), these regulations shall not apply to precious and semi-precious stone, gold or silver requiring testing of samples.

Similarly restrictions are also provided under Courier Imports and Exports (clearance) Regulations, 1998, on import of precious and semi -precious stones, gold or silver in any form.

The Department has clarified that these restrictions are provided only for import and not on the Export of these Gems and Jewellery. Therefore, Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 and courier Imports and Exports (clearance) Regulations, 1998 do not restrict export of gems and jewellery through the courier mode.

However, such clarification should be read along with other provisions applicable on exports through courier, such as those under Regulation 2(2) (b) and 2 (2) (c), of the courier Imports and Exports (Electronic Declaration and Processing) Regulations, 1998 while exporting the Gems and Jewellery through courier.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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