US terminates duty-free tariffs for Indian gold jewellery
30 Jun 2007
New
Delhi: The US government has terminated the ''generalised
system of preference'' (GSP) - duty-free tariff regime
for India''s exports of gold jewellery and brass lamps.
The GSP regime allows the US Government to extend preferential
tariff arrangements for select countries, according
to reports from Washington. (See: US
reduces trade benefits for India, Brazil)
Consequently, these exports would attract import tariff applicable for exports from other countries engaged in the same trade.
Duty-free imports into the US under the GSP accounted for $32.6 billion worth of goods from developing countries in 2006, according to the reports.
India shipped gold jewellery worth $1.6 billion and $20 million worth of brass lamps under the GSP programme in the first 10 months of 2006. Along with India, Brazil and some other developing countries have also been targeted under a programme revamped late last year by the US Congress.
Indian jewellery exports will now attract 6.5 per cent duty in the US.
Out of the total jewellery purchased by US from various countries, Indian jewellery accounts for 33.2 per cent, according to GJEPC News, published on the Gem and Jewellery Export Promotion Council (Council) Web site.
Vasant
Mehta, vice-chairman of the council said the effect
of this could be that Indian jewellery may lose some
business to China.
