July 15, 2003	Tuesday	Jumadi-ul-Awwal 14, 1424

ISLAMABAD, July 14: The Export Promotion Bureau (EPB) has proposed setting up of a Gems Industrial Estate in NWFP to promote gems industry and export of precious stones.

The EPB in its proposal submitted to Commerce Ministry for consideration in the upcoming trade policy 2003-04, suggested that the gems trade should be given amnesty from all taxes for five years.

According to the proposal, a copy of which was made available to Dawn, the EPB suggested to the government that the import and export of gems should be made zero rated.

It was recommended that the government should provide loans to the gems industry on nominal mark-up.

The NWFP government should provide one or two canal plots to gems dealers for establishment of their lapidaries in the proposed industrial estate.

It was also recommended that the requirement of depositing an equal amount of US dollars for the export on the basis of documents of acceptance of consignment be done away with and replaced with personal guarantee amounting to the value of gemstones for the period permitted for repatriation of foreign exchange.

In order to enhance exports of gem-studded and value-added jewellry, no duty and no drawback import of rough gemstones and gold used for gem-studded jewellry should be permitted for 90 days.

It was also proposed that locker and safe deposit facilities for gemstones should be provided at the airports and in the air planes so that security concerns of exporters are met.

The EPB recommended to the government that all development costs financed by banks for lapidaries be provided out of long term export finance at 8 per cent particularly for joint ventures.

It was also proposed that to compensate for value loss due to official exchange rate, free or discounted air tickets and boarding/lodging should be offered to the exporters to the tune of 2 per cent of sale value on value-added gems and jewellry through export development fund (EDF) in addition to travel facility as official delegation.

It was recommended that financial support be provided to develop display centres and trading houses at selected markets with assistance from EDF to the extent of 2 per cent of export value.

It was also proposed to withdraw all taxes on gems and jewellry export including rough and value added products including 0.5 per cent withholding tax for five years.