India’s gem and jewellery sector has been granted the Authorised Economic Operator (AEO) status by the finance ministry. This designation will streamline the export and import processes, ensuring quicker cargo release times. Additionally, AEO-certified entities will benefit from a 50% reduction in bank guarantee requirements compared to non-AEO counterparts. Moreover, it will expedite the resolution of customs, central excise, and service tax cases, further enhancing efficiency within the industry.
Following the initiatives of the Gem & Jewellery Export Promotion Council (GJEPC) to address the matter with the finance ministry, the sector has attained this status. The AEO program was initially introduced as a pilot project in 2011 (referenced in Circular No. 37/2011 – Customs dated August 23, 2011).
Continue Exploring: Desi jewellery brands bet big on US market expansion, targeting diaspora demand
As a pivotal component of the wider ease of doing business campaign, the AEO program has played a vital role in streamlining export procedures across diverse sectors, leading to notable time and cost reductions for exporters. However, despite its advantages, the gem & jewellery sector initially faced exclusion from the AEO program.
Nonetheless, by actively engaging with pertinent ministries, the GJEPC effectively lobbied for the inclusion of the gem and jewellery industry in the AEO program.
As a result, the Ministry of Finance has announced that entities in the gem and jewelry sector are now able to seek enrollment in the AEO program, granting them access to its accompanying advantages.
Around 20 companies have already submitted applications for AEO status. Among these applicants, Asian Star, a prominent manufacturer of diamonds and diamond jewellery, has been awarded AEO status, making it the first recipient of the certificate within the Indian gem and jewellery sector.
Continue Exploring: Gems and jewellery exports see 12.17% dip to INR 2.65 Lakh Cr in FY24: GJEPC
