By the UAE government, on the gold Jewellery an import duty of 5% was levied by which from India to UAE, there is sharp of fall of 56% in gold Jewellery export. As per the data made by the Gems and Jewellery Export Promotion Council (GJEPC) which shows that Indian gold Jewellery consignments sent to UAE in January 2017 at $148.1 million which is less from the $334.08 million export of January last year.
As the UAE government’s import levy of 5%, the fall in exports has come at the same time. To Europe and many other countries, Dubai is the hub for selling Jewellery for Indian gold Jewellery exporters. To give the buyer countries a great range of contemporary designs, Indian gold Jewellery and Jewellery from other countries is sent to Dubai and is blended and exported to European and other countries from there. After this levy, to the buying countries directly instead of routeing them through UAE, the manufacturers of gold Jewellery are sending their consignments.
According to the World Trade Organisation (WTO) regulations, to a maximum of 25%, the import levy can be put up. On the gold Jewellery, India charges a 15% import levy. Before January 1st, 2017, Dubai had 0% import duty on gold Jewellery and after this was increased to 5% which has led to this fall in gold Jewellery exports from India.
Along with the other UAE markets, the Dubai ¬ market saw their share falling in the global markets from 63% in January 2016 to 37% in this January. By around 25% in January 2017 UAE’s share fall has impacted the gold Jewellery exports from India to $398 million from $530.33 million in the same month of previous year.
With annual consumption of about 350 tonnes, Dubai is a massive market for Jewellery. Although the routeing of Jewellery has because of less volume, the domestic consumption of gold Jewellery in Dubai is strong. In the time limit for the routeing business, the exporters have to sign an agreement to reship to other markets.