)
In order to boost exports, the government today announced increasing import incentives for garment exporters and scrapping of basic customs duty on precious and semi-precious stones.
"To encourage exports of ready-made garments, I propose to increase the duty free entitlement for import of trimmings, embellishments and other specified items from 3 % to 5 % of the value of their exports," Finance Minister Arun Jaitley said while presenting Budget 2014-15.
The minister has also announced steps to enhance outbound shipments of precious and semi-precious stones.
"To encourage exports, pre-forms of precious and semi- precious stones are being fully exempted from basic customs duty," he said.
Semi-processed, half cut or broken diamonds are presently exempt from basic customs duty. As against this, cut and polished diamonds and coloured gemstones attract basic customs duty of 2 %.
"To prevent mis-use and avoid assessment disputes, the basic customs duty on semi-processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones is being rationalised at 2.5 %," he added.
Federation of Indian Export Organisations (FIEO) said that the increase in the duty free entitlements and exemption from basic customs duty will benefit both the sectors.
