India Differentiates Synthetics Imports

RAPAPORT... India has introduced an import classification code solely for lab-grown rough diamonds, enabling the industry to keep better watch of syntheticsentering the country.The government has separated the Indian Trade Clarification(ITC) code for rough synthetic gemstones into diamonds and non-diamonds, theGem & Jewellery Export Promotion Council (GJEPC) reported last week. Themove will help organizations such as the GJEPC track the precise quantities of lab-grown diamonds coming into the market,explained Colin Shah, the council's vice chairman. Previously, all rough synthetic gemstones carried the sameIndian import code - 71042000 - whether they were man-made diamonds or other stones.From now on, rough lab-grown diamonds will fall into 71042010, while otherrough synthetic stones will be assigned 71042090. Trade data for the two categoriesis likely to be available starting in August, the GJEPC said. Natural roughdiamonds will retain their code of 71023100. ITC codes are unique numbers for each type of product, andare based on the international Harmonized System (HS) of codes. The governmentannounced the change in last week's Union Budget, following lobbying by theGJEPC. "This will go a long way in strengthening the efforts of thecouncil to monitor the two pipelines and maintain their integrity," said GJEPCchairman Pramod Agrawal. India already has the distinction for polished: Syntheticdiamonds carry the ITC code 71049010, while other polished synthetic gemstonesare labeled 71049090. However, until now, the GJEPC has chosen not to publishthe official trade figures for synthetic diamonds in its monthly data release, insteadproviding one total for all synthetic polished gemstones, including diamonds,and an equivalent for rough. It's in the process of changing its reportingmethods, and will soon publicize the whole range of available data across roughand polished, it confirmed. India is one of the first countries to keep close tabs onlab-grown trading, the GJEPC claimed. China already has a similar distinctionfor its import codes, while the European Union will adopt a CombinedNomenclature (CN) customs code for synthetic diamonds on January 1, 2020, theGJEPC added. Australia and Russia are likely to follow suit, it noted. The budget - the country's first since the reelection ofPrime Minister Narendra Modi - also saw the introduction of an online serviceenabling small and medium-sized enterprises to obtain loans of up to INR 10million ($146,000) within 59 minutes. The government will allocate INR 3.5billion ($51 million) to subsidize interest repayments for companies of thatsize that are registered for the nation's goods and services tax. Theinitiatives are open to a range of industries, including jewelry. Additionally, the government will charge a 2% "tax deductedat source" on cash withdrawals exceeding INR 10 million ($146,000) todiscourage cash payment for business purposes. Image: A lab-grown rough diamond. (Shutterstock)