The Directorate General of Foreign Trade (DGFT) has updated waste and Standard Input Output Norms (SIONs) for jewelry, beginning January 1, 2025.
The DGFT had dramatically decreased the wastage norms across all jewellery types. Recognizing the impact of these significant cutbacks, the Council immediately convened a stakeholder meeting with DGFT officials on the same day, asking the opportunity to present corroborative data on manufacturing workflows. As a result, the previously given notice was periodically deferred.
The Council undertook a statewide study, collecting and analysing data from 160 exporters and manufacturers that were consistent with the existing process loss requirements stated in the Handbook of Procedures 2023. The sector has made two important requests: (a) establish waste requirements that are realistically aligned with the jewellery manufacturing process, and (b) provide an acceptable transition period for adapting to new laws.
Following GJEPC‘s investigation and a series of meetings with DGFT authorities, both proposals were authorized, with minor changes made to the prior waste limits. The increased rates will be effective January 1, 2025. During the interim period, the previous rules will continue in effect until December 31, 2024.
The notification also includes changes to SIONs, which describe the amount of raw materials allowed for a given quantity of finished jewelry. The amended standards seek to strike a balance between efficient metal usage and the realities of jewellery manufacturing processes, primarily favoring traditional artists.