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.
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.
The market selection will depend on four factors:
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.
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.
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.
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.
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.
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.
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.
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:
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.
To Export Jewellery from India to the USA, you will require:
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).
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
Jewelry of precious metals or metal covered with precious metals fall under HSN code 7113 as under:
Imitation jewelry falls under HSN code 7117 as under:
Accordingly, the GST registration fee with StartEazy is Rs. 980.
Documents Required for GST Registration
Partnership or LLP
Private Limited Company or One Person Company
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:
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.
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.
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.
Office or Premises
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.
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 (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.
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.
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
GST at 18%
Total Fees payable
Export & Domestic turnover uptoRs. 40 lakhs
( For Associate Micro Membership)
Export Upto Rs.25 Lakhs
Export above Rs. 25 lakhs &uptoRs. 1 Crore
Export above Rs. 5 Crore &uptoRs. 15 Crore
Export above Rs.15 Crore &uptoRs. 50 Crore
Export above Rs.50 Crore &uptoRs. 100 Crore
Export above Rs.100 Crore &uptoRs. 500 Crore
Export above Rs.500 Crore & up to Rs 1000 Crore
Export above Rs. 1000 Crore
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.
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.