Export of Imitation Jewellery

Introduction

The export of imitation/artificial jewellery, commonly known as costume jewellery or imitation jewellery, is an important segment of the global jewellery market. Artificial jewellery is made from materials like plastic, glass, metal alloys, beads, and synthetic stones, mimicking precious metals and gems. With a growing global demand for affordable, trendy, and fashionable accessories, India has become a significant player in the export of artificial jewellery. This sector holds immense potential due to its relatively low manufacturing costs and the increasing global appetite for fashion-forward, budget-friendly products.

Legal Framework

The export of artificial jewellery is governed by various rules and regulations that ensure the industry operates within a legal framework. Key legislation includes:

• Foreign Trade Policy (FTP): India’s Foreign Trade Policy defines the procedures and guidelines for export, including artificial jewellery.
• Customs Act, 1962: Governs the clearance of goods and the duties applicable to exports.
• BIS Certification: Though not mandatory for artificial jewellery, some exporters choose to acquire certification to ensure quality.
• Trademark Law: Protects the designs and trademarks of jewellery brands.
• The Export-Import (EXIM) Policy: Defines the export benefits, restrictions, and procedures applicable to the jewellery sector.

Classification (HSN Code)

The Harmonized System of Nomenclature (HSN) Code helps classify artificial jewellery for customs clearance and taxation purposes. The typical HSN codes for artificial jewellery include:

• 7117: Imitation Jewellery made from base metals or plastic materials.
• 711790: Other imitation jewellery (such as necklaces, earrings, and bracelets made from artificial materials).

These codes are crucial for customs clearance and for ensuring the correct application of duties and taxes.

RCMC Registration

• The Registration-Cum-Membership Certificate (RCMC) is an essential requirement for exporters. It is issued by Export Promotion Councils like the Gem and Jewellery Export Promotion Council (GJEPC).
• RCMC is mandatory for availing of export incentives, accessing schemes, and receiving government support. The application process includes submitting the necessary documents such as the PAN card, GST registration, export-import code (IEC), and business details.

Export Incentives

To promote the export of artificial jewellery, the Indian government offers several incentives:

1. Duty Drawback Scheme: Refund of customs duty paid on imported inputs.
2. RODTEP: Provides rewards on the export of specific goods, including artificial jewellery.
3. Interest Equalization Scheme: Provides concessional financing rates for exporters.
4. Transport and Marketing Assistance: Assists with the cost of transporting goods to international markets.
5. IGST/ITC Refund: Refund of IGST/ITC as the case may be, depending on payment of IGST on Export or Export under LUT.

Documentation

The necessary documentation for exporting artificial jewellery includes:

1. Commercial Invoice: A document detailing the goods being exported, their value, and terms of sale.
2. Packing List: Specifies the packaging details and quantity of the jewellery.
3. Bill of Lading: Proof of shipment.
4. Certificate of Origin: Specifies the country of origin for the products.
5. RCMC: Proof of registration with the relevant Export Promotion Council.
6. GST Invoice: A legal invoice for the export transaction under GST laws.
7. Insurance Certificate: To safeguard against potential loss or damage during transit.
8. Export Declaration Form (EDF): Required for exports exceeding a certain value.

Conclusion

The export of artificial jewellery offers significant potential for growth, particularly with India’s established reputation as a leading supplier. However, exporters must navigate the complexities of legal requirements, documentation, and classification to ensure a smooth operation. Proper registration, including RCMC, and awareness of export incentives, can make the process more cost-effective and efficient.

Way Forward

The future of artificial jewellery exports looks promising with the increasing demand for affordable, fashionable products globally. To enhance growth, exporters can:

1. Focus on innovation and design: Differentiating products through unique designs can help tap into niche markets.
2. Leverage digital platforms: E-commerce and digital marketing can open new global markets for artificial jewellery.
3. Adopt sustainable practices: Sustainable and eco-friendly production methods are becoming increasingly important in global trade.
4. Strengthen international trade relations: Partnerships with international buyers and participation in global trade fairs can improve market visibility and growth prospects.

By staying updated on legal frameworks, export procedures, and market trends, exporters can effectively position themselves to benefit from the booming global demand for artificial jewellery.