Indian jewellery exporters are using digital marketing to push online sales among potential buyers in the US, as they look for ways to minimise the impact of reciprocal tariffs, which the Trump administration has threatened to bring into effect from April 2.

The US allows jewellery worth up to $800 to enter the country free of tariffs and with minimal customs inspection and processing. Most of these imports, shipped by postal and express delivery services, are retail products purchased online.

"Termed as de minimis exemption, the US has already sounded out to China that it will stop this facility to the country. However, no such indication has come to India," said Sabyasachi Ray, executive director of the Gem & Jewellery Export Promotion Council (GJEPC). "We are sensitising the trade to use this route to reach out to the customers online directly."

In early February, the Trump administration announced it would immediately eliminate the "de minimis exemption" for low-value shipments arriving from China. The announcement led to a backlog of packages at the US ports of entry. When the Customs and Border Protection (CBP) realised that it was not prepared to deal with the huge volume of packages, the Trump administration backed off and instead announced it would create a process for eventually eliminating the exemption for China.

According to GJEPC's forecast, the US jewellery ecommerce market is expected to reach $6,608.1 million in 2025. The expected compound annual growth rate for the next four years (CAGR for 2025-2029) is 3.9%, resulting in a projected market volume of $7,714.9 million by 2029.

Kirit Bhansali, chairman of GJEPC, said the Council, along with the US jewellery retailers, are promoting Indian jewellery in the US, which can be bought through the e-commerce route.

"As global trade shifts from multilateral to bilateral frameworks, the de minimis principle-allowing small-value, direct to consumer (D2C) parcels to enter duty-free-offers Indian exporters, especially in gems and jewellery, a significant advantage," Bhansali said. "This simplified process provides direct access to consumers worldwide without duties. It is estimated that 70-80% of ecommerce exports fall under US$ 200, making gems and jewellery an ideal fit due to their low weight, which reduces logistics costs.

Trade sources said that many mid- and small-sized Indian jewellery retailers are selling their products in the US through different e-commerce sites.

"We have tied up with DHL to simplify the export process for the trade to enable the shipment of gems and jewellery across borders through e-commerce channels," Ray said. "While we have made significant progress towards this, cross-border logistics has always been a challenge, given the complexities of international trade."

Incidentally, the US provides three customs processes by which foreign goods can arrive in the country-formal entry, informal entry, and de minimis exemption.

Courtesy : ET