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)
these exports would attract import tariff applicable
for exports from other countries engaged in the same
imports into the US under the GSP accounted for $32.6
billion worth of goods from developing countries in
2006, according to the reports.
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
jewellery exports will now attract 6.5 per cent duty
in the US.
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.
Mehta, vice-chairman of the council said the effect
of this could be that Indian jewellery may lose some
business to China.