Jewellery sector: govt temporarily suspends SRO regulating precious metals and gems

The government has temporarily put on hold the implementation of SRO 760(I)/2013, which is the “Import and Export of Precious Metals, Jewelry and Gemstones Order, 2013”, for 60 days.

“The Federal Government is pleased to suspend the - Import and Export of Precious Metals, Jewelry and Gemstones Order, 2013, for a period of 60 days, with immediate effect,” read the notice, released on Wednesday.

SRO 760 (I)/2013 sets rules, procedures, and conditions for businesses in Pakistan involved in importing and exporting of precious metals (like gold, silver, platinum), gemstones and jewellery.

Under the SRO, the exporters of jewellery and gemstones shall be registered with the Trade Development Authority of Pakistan (TDAP) as per the procedure to be notified by TDAP.

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Meanwhile, the import or export of precious metals, gemstones and jewellery made up of precious metals, gemstones, or a combination thereof shall be allowed under the entrustment scheme and self-consignment scheme.

“The entrustment scheme provides for export of jewellery and articles made thereof against imported precious metals supplied as partial advance payment, by the foreign buyer to the extent of the quantity of such precious metals to be used including wastage, in the manufacturer of the jewellery to be exported,” read the SRO.

Meanwhile, under the SRO, the quantity of precious metals imported under this scheme shall be capped at 25kg on a revolving basis.

“The precious metals imported under this scheme shall neither be sold in the domestic market nor used for any other purpose except to make and export jewellery to the supplier as per terms and conditions of the contract.”