Your friend is planning to start business as merchant exporter of gems and jewellery items. Being an international business consultant, prepare a note advising your friend on details of 'export from India scheme'.

Note to Friend: Export of Gems and Jewellery from India Dear [Friend's Name], It's great to hear about your plans to venture into the gems and jewellery export business. As an international business consultant, I've prepared a detailed note outlining the key requirements and procedures under the Foreign Trade Policy (FTP) 2015-2020 for exporting gems and jewellery from India. I. Planning Stage (Before Starting Business): Importer-Exporter Code (IEC): This is mandatory. You cannot export or import without it. Apply online (ANF-2A) to the Directorate General of Foreign Trade (DGFT) with your PAN card copy, address proof, cancelled cheque, and applicable registration details (e.g., partnership deed, CIN). The fee is ₹500. Registration Cum Membership Certificate (RCMC): Obtain this from the Gems and Jewellery Export Promotion Council (GJEPC). This certificate is crucial for availing various benefits and for being recognized as an exporter. Tax Registrations: Excise Control Code (ECC): Gems & Jewellery are excisable products. You need ECC to neutralize excise incidence (against ARE-1 or ARE-2). Service Tax Registration: To neutralize Service Tax incidence at the output stage. VAT and CST Registration: For neutralization of VAT or CST incidence, as applicable. Kimberly Certification for Diamonds: If you plan to export diamonds, ensure you source them only from suppliers providing 'Kimberly Certification'. This is mandated under FTP against Security Council Resolution of 2004 to prevent trade in 'conflict diamonds'. Without it, you cannot export diamonds anywhere. II. At the Time of Export (Eligible Items & Procedures): Eligible Items for Export: Gold Jewellery: Includes partly processed jewellery, articles, medallions, and coins (excluding legal tender), plain or studded, containing gold of 8 carats and above. Silver Jewellery: Includes partly processed jewellery, silverware, strips, articles, medallions, and coins (excluding legal tender, engineering goods) containing more than 50% silver by weight. Platinum Jewellery: Includes partly processed jewellery, articles, medallions, and coins (excluding legal tender, engineering goods) containing more than 50% platinum by weight. Replenishment Authorization for Gems: This may be issued against exports, including those made against supply by Nominated Agencies or foreign buyers. Nominated Agencies: A 'Four Star Export House' from the Gems & Jewellery sector can be recognized as a Nominated Agency by the regional authority. Reserve Bank of India (RBI) can authorize any bank as a Nominated Agency. Procedures for importing precious metals by Nominated Agencies (other than EOUs/SEZs) and their monitoring mechanisms are as per specific provisions. Banks authorized by RBI are allowed to export gold scrap for refining and import standard gold bars as per RBI guidelines. Role of GJEPC: The Gem and Jewellery Export Promotion Council (GJEPC) plays a vital role in monitoring and promoting the sector, helping individual exporters contribute to India's export-led growth. III. General Advice: Market Research: Thoroughly research your target markets, understanding their demand, import regulations, and cultural preferences. Quality Control: Maintain stringent quality control standards to build a reputation for excellence. Logistics and Insurance: Plan your logistics carefully and ensure adequate insurance for high-value shipments. Payment Terms: Secure appropriate payment terms and methods to mitigate risks. Compliance: Stay updated with the latest Foreign Trade Policy changes and other relevant regulations. This business has immense potential, but success hinges on meticulous planning and strict adherence to regulations. Feel free to reach out for any further clarification or assistance. Best regards, [Your Name] International Business Consultant