Value Addition

4A.6

The value addition for the purpose of gems and jewellery sector shall be as per paragraph 4A.2.1 of Handbook of Procedures (Vol.1).

V.A=

A - B _____________ B

x 100, where

V.A. — Value Addition,

A — FOB value of the export realised / FOR value of supply received.

B — The Value of inputs such as gold / silver / platinum content in the export product plus the admissible wastage along with the value of the other items such as gemstone etc. ‘Value’ for this purpose includes both imported as well as domestically procured inputs. Wherever gold has been obtained on loan basis, the value shall also include interest paid in free foreign exchange to the foreign supplier.