How to Export Jewellery from India to the USA

India's gems and jewelry export has contributed 7% to the Country's GDP as of 2021. Therefore, based on the potential of this sector, the Government of India has declared it a critical area for export promotion.

 

Not only this, but the jewelry export has witnessed sharp growth, attracting new entrepreneurs and startups to get into this industry.

 

So, if you have already made your place in the jewelry market of India, here is how to export jewellery from India to the USA and become a global competitor.

 

Steps to Export Jewellery from India to the USA

 

Step 1- Select the Product 

 

The first step is to decide and choose the products you want to export to the USA.

 

Keep in mind that the USA market is more interested in buying the traditional and cultural jewelry of India. However, they also appreciate a touch of modern and sophisticated work in it.

 

Step 2 - Market Selection and Finding the Buyers

 

The market selection will depend on four factors: 

 

• Market Size
• Competition
• Quality Requirements 
• Payment Terms

 

Thus, make your decision after reviewing the market on these factors.

 

Once you select the market, prepare a list of the potential buyers and pitch them your quote.

 

Wait for a positive reply and negotiate if necessary.

 

Step 3 - Get the Order

 

The third step is receiving the order. 

 

For this purpose, you will be required to share the sample with the interested buyer to receive a bulk order.

 

Or you might need to share a custom invoice including the price, description and details about the jewelry.

 

Also, review the terms and conditions in the export contract, such as documents, freight charges, payment terms etc.

 

Step 4 - Initiate Manufacturing Process

 

When both parties agree to the terms and customization as required, you can start processing the order.

 

Make sure the final jewelry order adheres to all the terms and customizations as requested by the customer.

 

However, if you are a merchant, you can purchase the products from the manufacturer and start processing them.

 

Further, make sure to perform a quality check of the final product and get a certificate issued by BIS (Bureau of Indian Standards) for the same.

 

Step 5 - Obtain a Certificate of Origin (COI)

 

The COI certifies that the product being exported is made in India. Further, it helps with availing of preferential tariff rates.

 

However, that has to be mentioned in the agreement, such as GSP (Generalized System of Preference) or GSTP (Global System of Tariff Preference).

 

GSP - Under this agreement, a developed country can give concessions to a developing country.

 

GSTP - It allows one developing country to give tariff concessions to another developing country.

 

Step 6 - Availing Insurance

 

International shipment transportation is full of risks. Moreover, the carriers do not take any responsibility for the shipment if lost, pirated or damaged unless it has insurance.

 

Thus, it is mandatory for all the exporters, including the jewelry exporters to have cargo or marine insurance for the shipment.

 

Also, make sure to read the insurance agreement thoroughly before signing. 

 

Read all policies and the kinds of risks covered under the insurance to be on the safer side.

 

Step 7 - Sending the Shipment

 

After checking all the things, and packing the jewelry properly with all the mandatory documents, send the package to the port.

 

Once the verification of the documents and inspection of the package is complete, they will ship your jewelry to the USA.

 

Step 8 - Hire a Clearing House Agent

 

In this step, you will require a cleaning house agent for issuing the shipping bills, payment of port charges, clearance of shipment etc.

 

Indian Agri Trade portal provides the list of almost all clearing house agents around various cities of India. 

 

You can get their contact details by searching CHA's name, state or ID.

 

They may charge Rs. 4000 - Rs. 5000 per shipment for small or regular size packages. 

 

However, they may charge more depending on the size of the package, procedures and custom clearance fees. 

 

Step 9 - Submit the Documents to the Importer and Bank

 

After the shipment, it is necessary to present all the bills and documents to the bank within 21 days.

 

The purpose of this is to dispatch them to the foreign banks for arranging the payment of your shipment. 

 

Here is a list of documents you need to submit:

 

• Bills of exchange
• Letter of Credit (In case the shipment is under L/C)
• Invoice
• Airway Bill/ Marine Bill/ Bill of Landing
• Declaration under foreign exchange
• COI, GSP or Inspection Certificate
• Any other documents (if necessary)

 

Step 10 - Realizing Export Proceeds

 

In this step, you can realize all the invoices and export bills in freely convertible currencies.

 

The export bills must be realized in 9 months.

 

Mandatory Requirements to Export Jewellery from India to the USA

 

To Export Jewellery from India to the USA, you will require:

 

1. IEC Code (Import-Export Code)
2. GSTIN (Goods and Services Tax Identification Number)
3. Business Registration Certificate
4. PAN Number
5. GJEPC Membership Registration 
6. Authorized Dealer Registration 
7. BIS Certificate (for manufacturer cum exporter)

 

IEC Code (Import Export Code)

 

Import-Export Code is a 10-digit numerical identification number allotted after successful IEC Registration. Any individual or legal entity can apply for IEC Code. 

 

It is required by the customs authority for authentication and validation purposes.

 

In fact, without an IEC code, no shipment will get clearance from the docks.

 

Thus, anyone willing to export anything from a needle to a truck must hold an IEC Registration Certificate.

 

As a result, you will be able to carry out the trade without any legal hassles.

 

The IEC application is approved by the Directorate General of Foreign Trade within 24-48 hours after applying.

 

The registration fee for IEC (Import-Export Code) is Rs. 1470/- (inclusive of the government fee).

 

Documents Required 

 

• Digital Passport Size Photo of the Applicant.
• PAN Card.
• Copy of ID Proof (Passport/ Aadhar Card/ Voter’s ID/ Driving License).
• Canceled Cheque.
• Digital Signature Certificate (DSC).
• Sale deed (in case of owned business place).
• Rent agreement or lease deed (in case of rented business place).
• Utility Bill (Electricity bill, Postpaid Mobile bill, Landline bill).
• NOC by the owner.

 

GSTIN (Goods and Services Tax Identification Number)

 

GST registration is mandatory to export anything from India.

 

The GST levied by the government on gold, silver, and artificial jewelry is 3% of the total value of the jewelry.

 

Further, the jewelry is categorized under HSN (Harmonized System of Nomenclature) Codes for GST Registration.

 

HSN Codes for GST Registration

 

• Gold powder - 7108 11 00.
• Unwrought forms of gold - 7108 12 00.
• Semi-manufactured forms of gold - 7108 13 00
• Monetary gold - 7108 20 00
• Gold base metals or silver, covered with gold (semi-manufactured) - 7109 00 00

 

Jewelry of precious metals or metal covered with precious metals fall under HSN code 7113 as under:

 

• Jewelry with filigree work - 7113 11 10
• Jewelry studded with gems - 7113 11 20
• Other articles of jewelry - 7113 11 30
• Gold jewelry (unstudded) - 7113 19 10
• Gold jewelry set with pearls - 7113 19 20
• Gold jewelry set with diamonds - 7113 19 30
• Gold jewelry set with other precious and semi-precious stones - 7113 19 40

 

Imitation jewelry falls under HSN code 7117 as under:

 

• Imitation jewelry of base metal (plated or not plated with precious metals) - 7117 11 90
• Imitation jewelry in the form of bangles - 7117 19 10
• Jewelry studded with imitation pearls or synthetic stones - 7117 90 10.

 

Accordingly, the GST registration fee with StartEazy is Rs. 980. 

 

Documents Required for GST Registration

 

Sole Proprietorship

 

• Owner’s Pan card
• Aadhar card of the owner
• Bank details
• Address proof

 

Partnership or LLP

 

• Partnership deed or LLP certificate
• Owner’s PAN card
• Aadhar card of the owner
• Bank details
• Address proof

 

Private Limited Company or One Person Company

 

• MOA and AOA 
• Incorporation certificate
• Business PAN card
• Owner’s Aadhar card
• Bank details
• Address proof

 

Business Registration Certificate

 

Registering your business is a basic requisite for starting your export journey from India.

 

The popular business structure to register your jewellery business are as follows:

 

- Private Limited Company Registration 

 

Registration Fee - Rs. 6890/- 

 

Company Registration Online is considered the best structure for all types of business. 

 

In fact, it is preferred by bulk buyers as well as investors. 

 

Psychologically, it increases the customers' reliability in your products and services.

 

Documents Required

 

• Rent agreement – NOC
• Electricity bill
• Photos of directors
• Aadhar card
• Pan card
• Digital signature certificate
• Self-declaration about the directorship

 

- One Person Company

 

Registration Fee - Rs. 5990/- 

 

This business structure is suitable for single owners. To clarify, it provides the business owners with more flexibility and has the benefits of a private limited company.

 

Also, it can be later converted into a private limited company if you wish to introduce additional directors.

 

Besides, to incorporate an OPC, you will need a nominee who is not a minor.

 

Documents Required

 

Director

• Copy of PAN Card of owner
• Passport size photograph of the owner
• Copy of Aadhaar Card/ Voter identity card
• Specimen signature

 

Nominee

• Copy of PAN Card
• Passport size photograph
• Copy of Aadhaar Card/ Voter identity card

 

Company

• Copy of Rent agreement (If rented property)
• Electricity/ Water bill (Business Place)
• Copy of Property papers (If owned property)
• Landlord NOC (Format will be provided)

 

- LLP (Limited Liability Partnership)

 

Registration Fee - Rs. 6758/-

 

LLP is a partnership business, but the partners have limited liabilities. It is best in case you have multiple partners in your export business.

 

Document Required

 

Partners Documents

• Adhaar card and the PAN card of the partners
• Photograph of Partners
• Address proof of partners
• Passport of partners (In case of foreign nationals)

 

Office or Premises

• Electricity bill 
• Rent Agreement/NOC of the office

 

- Sole Proprietorship 

 

Registration Fee - Rs. 980/-

 

You can even export jewelry from India as a sole proprietor. Thus, in case you do not want to form a separate legal entity, you can go for this.

 

Documents Required

 

• Passport size photograph
• Aadhar card
• Pan card of proprietor 
• Electricity bill
• Rent agreement
• NOC (in case of rented premises)
• Canceled cheque

 

PAN Number

 

You will receive the Business PAN Number along with the Incorporation Certificate.

 

In case you will be exporting the jewelry as an individual, use your personal PAN Card.

 

GJEPC Membership Registration 

 

GJEPC (Gems and Jewelry Export Promotion Council) membership registration is the most important and mandatory registration for anyone who wants to Export Jewellery from India to the USA.

 

No one can export precious stones, gems and precious metals out of India without their approval.

 

The main purpose of creating GJEPC was to increase the exposure of the Indian Jewellery Industry.

 

Not only this, but they also come up with schemes and ways to incentivize the gems and jewelry industry owners in India.

 

Steps to Register with GJEPC

 

1. Firstly, go to the GJEPC website and click on "registration".

2. Fill out the form and submit it.

3. After that, you will receive an email with credentials.

4. Now, go to the website and click on membership > new membership.

6. Use the credentials to log in.

7. Fill in your details to apply for membership. 

8. Lastly, pay the required fees.

 

Documents Required 

 

• Membership application form
• RCMC application form
• Signature slip from the business owner attested by a banker
• Challan form signed by the business owner
• Self-attested copy of the IEC (Import Export Code), 
• PAN, UAN registration, 
• GST certificate, 
• Passport and Aadhaar card of the owner of the business.

 

After the submission of all these documents, the process is completed and the membership is issued.

 

The GJEPC membership is valid for five years. 

 

However, one must pay the membership fee by 30th April every year.

 

One-time admission fees of Rs. 5000/- + GST are payable for a new membership.

 

Export Performance of Gem & Jewelry during preceding FY	Membership Fees	Admission Fees	GST at 18%	Total Fees payable
Export & Domestic turnover uptoRs. 40 lakhs ( For Associate Micro Membership)	1000	NIL	180	1180
Export Upto Rs.25 Lakhs	6000	5000	1980	12980
Export above Rs. 25 lakhs &uptoRs. 1 Crore	10000	5000	2700	17700
Export above Rs. 5 Crore &uptoRs. 15 Crore	30000	5000	6300	41300
Export above Rs.15 Crore &uptoRs. 50 Crore	40000	5000	8100	53100
Export above Rs.50 Crore &uptoRs. 100 Crore	65000	5000	12600	82600
Export above Rs.100 Crore &uptoRs. 500 Crore	100000	5000	18900	123900
Export above Rs.500 Crore & up to Rs 1000 Crore	150000	5000	27900	182900
Export above Rs. 1000 Crore	200000	5000	36900	241900

 

Authorized Dealer Registration 

 

After receiving your IEC certificate, make sure to register yourself as an authorized dealer at the ports where your shipments are to be exported.

 

It is necessary for customs clearance. 

 

Moreover, the AD Code is used to generate shipping bills and receive prompt payments from the buyers.

 

Documents Required 

 

• AD Code Authorization letter in Annexure-A from the bank (original)
• Exporter's letter on letterhead requesting the registration of AD Code
• Customs broker's letter on letterhead requesting AD Code registration
• GST registration certificate
• Import-Export Code License
• PAN Card
• Export House Certificate (if any)
• Manufacturing License (if any)
• Owner's Identity Proof

 

BIS Certificate (for manufacturer cum exporter)

 

BIS hallmark is basically the standard hallmarking system to identify the purity of gold and silver jewelry. 

 

The main objective of the BIS certificate is to assure the customers about the genuineness of the jewelry.

 

In fact, the product with the BIS hallmark has better recognition in the global market. Thus, the jewelry exporters must have the BIS Certificate to ship the products to the USA.

 

Note:- Gold Jewelry above 22 carats is banned to be exported from India.