Supportive e-commerce policy for gem, jewellery to drive online purchases: GJEPC

Supportive e-commerce policy for gem, jewellery to drive online purchases: GJEPC

New Delhi: Gem and jewelry exporters’ body GJEPC on Wednesday, July 8 said the introduction of a supportive e-commerce policy by the government for the sector will help boost online purchases.

The formulation of a national e-commerce policy is under process in the commerce and industry ministry. A draft policy is expected to be released soon to seek public and stakeholders’ views.

“COVID-19 has led to a paradigm shift in consumer behavior across geographies. With e-commerce gaining momentum, a massive rise is seen in online purchases, and the introduction of a supportive e-commerce policy for the gem and jewelry sector will drive online jewelry purchases,” Gem and Jewellery Export Promotion Council Chairman Colin Shah said in a statement.

He also urged the government for a dedicated system-driven fast track customs clearance of shipments for the gems and jewelry goods valued below USD 800.

These issues among others were raised by Shah during a video conference meeting with Finance Minister Nirmala Sitharaman on July 6.

The council has suggested for making MyKYCBank platform mandatory for all gems and jewelry sector entities; sale of rough diamonds in India by miners to special notified zones (SNZs); clarification on equalization levy for B2B international diamond auctions; reduction in import duty on polished diamonds, and gold monetization scheme.

“We need to take measures and bring in reforms that would strengthen the ease of doing business in the industry,” Shah said.

On the proposal of direct sale of rough diamonds by miners in SNZs in India, he said that currently, rough diamonds are sent to SNZs by miners for viewing in the country, post which diamonds are shipped back to Dubai or Antwerp by SNZ.

“Sales are not permitted, and if they do, it comes under the Permanent Entities as per the IT Act, and attracts income tax on the sale. The same goods are then shipped back to India via offices in Dubai or Antwerp, thus increasing costs for the importer. As much as 60 percent of the rough is routed through Antwerp or Dubai,” he added.

On availability of bank finance to the trade, GJEPC Vice-Chairman Vipul Shah said the industry has access to about Rs 66,580 crore of bank credit, which amounts to 0.68 percent of the total bank credit of Rs 98,91,788 crore, which is “minuscule”.

He said banks should follow all RBI circulars and notifications, and banks should be directed not to withdraw credit limits.

The council has also urged to reduce polished diamond import duty from 7.5 percent to 2.5 percent to help India strengthen its status as a polished diamond hub, as all distribution would then be out of India, leading to an increase in duty collection due to greater volumes, Shah added.

Sellers need to mention ‘country of origin’ on products for GeM platform

Sellers need to mention ‘country of origin’ on products for GeM platform

New Delhi: The government procurement portal GeM has made it mandatory for sellers to mention ‘country of origin’ on products they wish to sell through the platform, a move aimed at promoting Aatma Nirbhar Bharat (Self-reliant India), a senior official said on Tuesday.

Government e-Marketplace (GEM) has also enabled a provision for indication of the percentage of local content in products with a view to promote Make in India. “GeM has taken a significant step towards Aatma Nirbhar Bharat and has made it mandatory for sellers to enter the country of origin while registering all new products on GeM,” the portal’s CEO Talleen Kumar told PTI.

Sellers, who had already uploaded their products before the introduction of this new feature on GeM, are being reminded regularly to update the country of origin, with a warning that their products will be “removed” from the platform if they fail to update the same, he said.

“With this new feature, now, the country of origin as well as the local content percentage are visible in the marketplace for all items. More importantly, the Make in India filter has now been enabled on the portal. Buyers can choose to buy only those products that meet the minimum 50 per cent local content criteria,” he said.

Kumar said that since its inception, GeM is continuously working towards promoting ‘Make in India’ initiative and the portal has facilitated entry of small local sellers in public procurement.

Earlier this month, the government modified public procurement norms to give maximum preference to companies whose goods and services have 50 per cent or more local content, a move aimed at promoting “Make in India” and making the country self-reliant.

The revised public procurement (Preference to Make in India), Order 2017, has introduced a concept of Class-I, II and non-local suppliers, based on which they will get preference in government purchases of goods and services.

GeM is also coming up with a more dynamic, transformational and vibrant portal by adding advanced features such as powerful search engine, revamped brand and product approval process and faster creation of categories for goods and services through tender analysis.

Government e-Market (GeM) portal was launched in August 2016 for online purchases of goods and services by all the central government ministries and departments.

Government departments, agencies and public sector units can now procure products made by tribal communities from the GeM portal as it has added over 4,000 such items, including paintings, handmade showpieces and statues.

Currently, government departments, ministries, public sector units, state governments, and Central Armed Police Forces are allowed to carry out transactions through this portal.

The portal provides a wide range of products from office stationery to vehicles. Automobiles, computers and office furniture are currently the top product categories. Services, including transportation, logistics, waste management, web casting and analytical, are listed on the portal.

So far, 3,94,461 sellers and service providers are registered with the portal to sell 18,30,688 products and several services.