The government on Monday provided 30 more days to the gems and jewellery sector to meet certain obligations to help them deal with the ongoing West Asia crisis.

The region is a key export destination for the sector. West Asia accounts for about 30 per cent of India's total gems and jewellery, which stood at $26.2 billion during April-February this fiscal year.

The measure is intended to support exporters by easing compliance requirements and addressing operational difficulties arising during the current period.

A joint attack launched by the US and Israel on Iran last month has impacted movement of air and ship consignments in the Middle East.

"Facilitative provisions for the gems and jewellery sector under Chapter 4 of HBP-2023 have been incorporated in response to recent geopolitical developments in West Asia, and the export/import (as applicable) period for specific categories is being extended by 30 days without any requirement for fees or an application," the Directorate General of Foreign Trade (DGFT) said in a public notice.

Chapter 4 of handbook of procedures deals with duty exemption/remission schemes.

The time period for re-export of diamonds imported for certification/grading purposes; export against supply of precious metals received from foreign buyer; re-import of jewellery taken aborad for exhibition purposes; export in cases of gold booked with nominated agencies; export of jewellery in respect of gold obtained through outright purchase basis or loan basis; on replenishment basis have been extended by 30 days.

Under the relaxation, the re-export period for imported diamonds sent for certification/grading has been extended from 90 days to 120 days. The export period in cases of supply by foreign buyer has also been extended from 90 days to 120 days.

The government has also extended by 30 days the period for re-import of gems and jewellery exported for holding or participating in overseas exhibitions, over and above the existing applicable period.

These relaxations are expected to provide timely support to the sector by reducing procedural stress on exporters, facilitating smoother completion of export-related transactions, and helping address delays in movement of consignments arising from the current global situation.

The additional time is expected to support business continuity and provide greater certainty to trade.

It has also been clarified that exporters will not be required to file any separate application, nor will any amendment, endorsement or composition fee be payable for availing of this one-time relief.

Customs authorities have been advised to allow the corresponding export/import transactions, as applicable, subject to verification of relevant details.

Welcoming the move, former chairman of Gems and Jewellery Export Promotion Council Colin Shah said it is a good relief for the sector at a time when they are facing difficulties in exporting to the Middle East countries.

"We hope the situation will improve soon," he said. India's exports to the UAE stood around $10 billion.