New Delhi, May 28 (KNN) The Indian government has enacted stricter regulations on the permissible wastage limits for gold, platinum, and silver content in exported jewellery items, the Directorate General of Foreign Trade (DGFT) announced Monday.

In a notification, the DGFT reduced the allowable wastage percentage by weight for plain gold and platinum jewellery exports to 0.5 per cent, down from the previous 2.5 per cent limit.

Similarly, the wastage cap for studded jewellery exports was lowered to 0.75 per cent from the prior 5 per cent level.

"The wastage permissible and Standard Input Output Norms under the Handbook of Procedures, 2023 with regard to export of jewellery has been revised," the DGFT stated in its announcement.

The new rules stipulate that the weight of imported gold or silver mountings and findings used in exported products will be excluded from calculating the net precious metal content.

For medallions, coins (excluding legal tender), and other similar items, the updated wastage allowance is 0.1 per cent, a reduction from 0.2 per cent previously.

A representative from the gems and jewellery industry expressed concerns that “the wastage norms for gold and silver jewellery are revised and reduced drastically which will affect small exporters."

Alongside lowering the wastage thresholds, the DGFT has modified the Standard Input Output Norms (SION) that specify permissible quantities of precious metals allowed for import based on different categories of jewellery destined for export markets.

(KNN Bureau)