Draft resolution on supporting the jewelry industry discussed: zero duty on imported precious stones, extension of VAT exemptions
The Public Council for Supporting Entrepreneurship under the President discussed a draft Presidential resolution on the jewelry industry. The draft provides for a zero customs duty rate on imported precious stones, extension of VAT exemptions, lower customs fees and a digital control system. The document has not yet been adopted.
The Public Council for Supporting Entrepreneurship under the President held its regular meeting on jewelry industry issues. It reviewed the draft Presidential resolution "On additional measures for state support of business entities operating in the jewelry industry and for increasing export volumes".
Important: this is still a draft. Until the resolution is adopted, the current rules do not change, and the draft's provisions may change after discussion.
What measures does the draft include?
The right-hand column was added by the author.
| Measure | Who it affects |
|---|---|
| Applying a zero customs duty rate to imports of precious stones | Jewelers importing precious stones |
| Extending the term of existing VAT exemptions | Jewelry companies currently using a VAT exemption |
| Reducing certain customs fees | Companies going through customs clearance |
| Setting clear deadlines for issuing export conclusions | Exporters of jewelry |
| Introducing a digital control system in the jewelry industry step by step | All businesses in the industry |
The meeting examined the legal basis for the draft's incentives and relief, the mechanisms for implementing them and the expected economic benefit for entrepreneurs. The proposals made will help improve the draft.
What can a jewelry company's accountant do now?
The tips below are compiled by the author:
- List current incentives. Note which VAT exemption the company uses, under which document and until what date: whether or not the term is extended, you will be able to calculate the impact right away.
- Track import costs separately. Record the customs duty and fees on imported precious stones separately from other costs: if a zero rate is introduced, you will see exactly how much the cost price falls.
- Prepare for digital control. Consistency between raw material, production and sales documents will matter especially once digital control is introduced.
If the resolution is adopted, we will report on it separately on the site based on its final text.
Official source
For information only; check the official text at the source.