ITC (HS), 2022
SCHEDULE 1 – IMPORT POLICY

SECTION XIV
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METAL, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN

CHAPTER 71
NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-PRECIOUS STONES, PRECIOUS METAL, METALS CLAD WITH PRECIOUS METAL, AND ARTICLES THEREOF; IMITATION JEWELLERY; COIN

NOTES:

1. Subjects to Note 1 (a) to Section VI and except as provided below, all articles consisting wholly or partly:

(a)  Of natural or cultured pearls or of precious of semi-precious stones (natural, synthetic of reconstructed), or

(b)  Of Precious metal or of metal clad with precious metal, are to be classified in this Chapter.

2. (A) Headings 7113, 7114 and 7115 do not cover articles in which precious metal or metal clad with precious metal is present as minor constituents only, such as minor fittings or minor ornamentation (for example, monograms, ferrules and rims) and paragraph (b) of the foregoing Note does not apply to such articles.

(B) Heading 7116 does not cover articles containing precious metal or metal clad with precious metal (other than as minor constituents).

3. This Chapter does not cover:

(a) Amalgams of precious metal, or colloidal precious metal (heading 2843);

(b) Sterile surgical suture materials, dental fillings or other goods of Chapter 30;

(c) Goods of Chapter 32 (for example, lusters);

(d) Supported catalysts (heading 3815);

(e) Articles of heading 4202 or 4203 referred to in Note 2 (B) to Chapter 42;

(f) Articles of heading 4303 or 4304;

(g) Goods of Section XI (textiles and textile articles);

(h) Footwear, headgear or other articles of Chapter 64 or 65

(ij) Umbrellas, walking sticks or other articles of Chapter 66;

(k) Abrasive goods of heading 6804 or 6805 or Chapter 82, containing dust or powder of precious or semi-precious stones (natural or synthetic); articles of Chapter 82 with a working part of precious or semi-precious stones (natural, synthetic or reconstructed); machinery, mechanical appliances or electrical goods, or parts thereof, of Section XVI. However, articles and parts thereof, wholly of precious or semi-precious stones (natural, synthetic or reconstructed) remain classified in this Chapter, except unmounted worked sapphires and diamonds for styli (heading 8522);

(l) Articles of Chapter 90, 91 or 92 (scientific instruments, clocks and watches, musical instruments);

(m) Arms or parts thereof (Chapter 93);

(n) Articles Covered by Note 2 to Chapter 95;

(o) Articles classified in Chapter 96 by virtue of Note 4 to that Chapter; or

(p) Original sculptures or statutory (heading 9703), collectors’ pieces (heading 9705) or antiques of an age exceeding one hundred years (heading 9706), other than natural or cultured pearls or precious or semi-precious stones.

4. (A) The expression “precious metal” means silver, gold and platinum.

(B) The expression “platinum” means platinum, iridium, osmium, palladium, rhodium and  ruthenium.

(C) The expression “precious or semi-precious stones” does not include any of the substances specified in Note 2 (b) to Chapter 96.

5. For the purpose of this Chapter, any alloy (including a sintered mixture and an inter-metallic compound) containing precious metal is to be treated as an alloy of precious metal if any one precious metal is to be treated as an alloy of precious metal if any one precious metal constituents as much as 2% by weight, of the alloy. Alloys of precious metal are to be classified according to the following rules:

(a) An alloy containing 2% or more, by weight, of platinum is to be treated as an alloy of platinum;

(b) An alloy containing 2% or more, by weight, of gold but no platinum, or less than 2% by weight, of platinum, is to be treated as an alloy of gold;

(c) Other alloys containing 2% or more, by weight, of silver are to be treated as alloys of silver.

6. Except where the context otherwise requires, any reference in this Schedule to precious metal or to any particular precious metal includes a reference to alloys treated as alloys of precious metal or of the particular metal in accordance with the rules in Note 5 above, but not to metal clad with precious metal or to base metal or non-metals plated with precious metal.

7. Throughout this Schedule the expression ”metal clad with precious metal” means material made with a base of metal upon one or more surfaces of which there is affixed by soldering, brazing, welding, hot-rolling or similar mechanical means a covering of precious metal. Except where the context otherwise requires, the expression also covers base metal inlaid with precious metal.

8. Subject to Note 1 (a) to Section VI, goods answering to a description in heading 7112 are to be classified in that heading and in no other heading of this Schedule.

9. For the purpose of heading 7113, the expression “articles of jewellery” means:

(a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, ear-rings, watch-chains, fobs, pendants, tie-pins, cuff-links, dress-studs, religious or other medals and insignia); and

(b) Articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (for example, cigar or cigarette cases, snuff boxes, cachou or pill boxes, powder boxes, chain purses or prayer beads).

These articles may be combined or set, for example, with natural or cultured pearls, precious or semiprecious stones, synthetic or reconstructed precious or semi-precious stones, tortoise shell, mother-of-pearl, ivory, natural or reconstituted amber, jet or coral.

10.  For the purpose of heading 7114, the expression “articles of goldsmiths’ or silversmiths’ wares” includes such articles as ornaments, table-ware, toilet­ware, smokers’ requisites and other articles of household, office or religious use.

11.  For the purposes of heading 7117, the expression “imitation jewellery” means articles of jewellery within the meaning of paragraph (a) of Note 9 above (but not including buttons or other articles of heading 9606, or dress-combs, hair-sliders or the like, or hairpins, of heading 9615), not incorporating natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal.

SUB-HEADING NOTES:

1. For the purposes of sub-headings 7106 10, 7108 11, 7110 11, 7110 31 and 7110 41, the expressions “powder” and “in powder form” mean products of which 90% or more by weight passes through a sieve having a mesh aperture of 0.5 mm.

2. Notwithstanding the provisions of Chapter Note 4(B), for the purposes of sub­headings 7110 11 and 7110 19, the expression “platinum” does not include iridium, osmium, palladium, rhodium or ruthenium.

3. For the classification of alloy in the sub-heading of heading 7110, each alloy is to be classified with that metal, platinum, palladium, rhodium, iridium osmium or ruthenium which predominates by weight over each other of these metals.

Policy Conditions of this Chapter:

1.Import of rough diamond from Cote d’Ivoire shall be ‘Prohibited’ in compliance to Paragraph 6 of UN Security Council Resolution (UNSCR) 1643(2005).

2.Import of rough diamond (ITC HS Codes 7102 10, 7102 21 or 7102 31) from Venezuela shall be ‘Prohibited’ in view of voluntary separation of Venezuela from the Kimberley Process Certification Scheme (KPCS). No Kimberley Process Certificate shall be accepted / endorsed / issued for import of rough diamonds from Venezuela.

3) Import of rough diamonds shall be permitted only if accompanied by Kimberley Process (KP) Certificate as specified by Gem & Jewellery EPC:

Provided that in cases of errors of minor nature i.e. typographical errors or errors apparent on the face of records, the Gem & Jewellery EPC may on the basis of electronic or documentary instructions of the Kimberley Process (KP) Certificate Issuing Authority endorse such instructions to the Kimberley Process (KP) Certificate accompanying the rough diamonds as per the Standard Operating Procedure (SOP) which is annexed to this Notification. Such endorsed Kimberley Process (KP) Certificate shall be treated as valid when produced along with the duly endorsed copies of the electronic or documentary instructions.

Provided further that the Gem & Jewellery EPC may, at the request of the Kimberley Process (KP) Certificate Issuing Authority which has issued the Kimberley Process (KP) Certificate accompanying the imported rough diamonds, issue a Technical Kimberley Process (KP) Certificate, as per the Standard Operating Procedure (SOP), for re-export of such rough diamonds, in cases where the imported rough diamonds have not left Customs control and re-export is ordered by Customs authorities.

4. Imports from South Korea of articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal under Exim code 7113; articles of goldsmiths or silversmiths wares and parts thereof, of precious metal or of metal clad with precious metal under Exim code 7114; other articles of precious metal or of metal clad with precious metal under Exim code 7115; and coins under Exim code 7118 are Restricted. The facility / protection under Para 1.05 of FTP shall not be available for import of the above items from the date of restriction.

⁷[5. i. Import of Semi-Manufactured Silver Paste, Sheets, Plates, Strips, Tubes, Electrodes, Wires, Silver Brazing Alloys(in any form), by Electrical, Electronics and Engineering industries including Glass and Solar Industries as input for their own manufacturing process on "Actual User" Basis shall be "Free".

ii. Import items mentioned at serial (i) above for Research & Development purposes by Government or Government Recognised Research Institutions shall also be "Free".

iii. Import for other purposes is permitted through Nominated Agencies as notified by RBI (in case of banks) and DGFT (for other agencies).]

²[Supplementary Note

1 For the purposes of heading 7104, ―Diamonds‖ means-

(a) chemically produced stones which have essentially the same chemical composition and crystal structure as a particular natural diamond and are produced using various methods including High Pressure High Temperature method (HPHT) and Chemical Vapour Deposition method (CVD); or

(b) stones obtained artificially by various means, e.g., agglomerating, pressing or fusing together (usually with the aid of a blow pipe) fragments of natural diamonds which have generally been reduced to a powder.]

1. Substituted Vide Notification No. 01/2015-2020 Dated 29.04.2022

2. Inserted Vide Notification No. 08/2023 Dated 29.05.2023

3. Deleted Vide Notification No. 08/2023 Dated 29.05.2023

4. Substituted Vide Notification No. 19/2023 Dated 12.07.2023

5. Substituted Vide Notification No. 35/2023 Dated 11.10.2023

6. Substituted Vide Notification No. 44/2023 Dated 20.11.2023

7. Inserted Vide Notification No. 57/2023 Dated 15.01.2024

8. Substituted Vide Notification No. 57/2023 Dated 15.01.2024

10. Inserted Vide Notification No. 17/2024 Dated 11.06.2024