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The Directorate General of Foreign Trade introduces the Diamond Imprest Authorisation scheme under Chapter 4 of the Foreign Trade Policy 2023 to boost diamond exports from India. Exporters with Two Star Export House status or above who meet specific export and tax compliance criteria may apply for the authorization. The scheme permits the import of eligible natural cut and polished diamonds with specific duty exemptions subject to actual user and pre-import conditions. Importers must fulfill export obligations within six months through Mumbai Air Port. The scheme takes effect on 1 April 2025.
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[To be Published in the Gazette of India Extraordinary Part-II, Section -3, Sub-Section (II)]
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi,
Notification No. 53/2024-25
New Delhi Dated: 21 January 2025
Subject: Introduction of new Scheme as 'Diamond Imprest Authorisation' under Chapter 4 of Foreign Trade Policy 2023.
S.O.(E): In exercise of powers conferred by Section 3 read with Section 5 of Foreign Trade (Development and Regulation) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2023, as amended from time to time, the Central Government hereby notifies the following amendments in Chapter 4 of the Foreign Trade Policy 2023:
Diamond Imprest Authorization may be granted for the import of Natural Cut and Polished Diamonds, including semi-processed, half-cut, and broken diamonds, each weighing no more than ¼ Carat (25 Cents), against which the physical export of Natural Cut and Polished Diamonds has to be carried out. Such Authorisation shall carry an export obligation to achieve a minimum value addition of 10% by realizing in Free Foreign Exchange, within specified time limits, which has to be discharged in accordance with the procedure specified in this behalf. The Diamond Imprest Authorisation does not apply to Lab-Grown Diamonds (LGDs).
An exporter with a Two Star Export House status or above, and having achieved a minimum export performance of US$ 15 million in Cut & Polished Diamonds each year for the past three financial years and having filed all GST and Income Tax returns for those years, may be granted a Diamond Imprest Authorization. This authorization allows the import of Natural Cut & Polished Diamonds up to 5% of the average annual export performance of Cut & Polished Diamonds over the previous three financial years subject to a maximum value of US$.15 million.
The export obligation against each import consignment shall be fulfilled within a period of six months from the date of clearance of such consignment through Customs. All imports and exports shall be made only through Mumbai Air Port. The importer shall be required to maintain relevant/ appropriate records of imports & exports for subsequent inspection if any.
Imports under Diamond Imprest Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Such, imports are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975).
Effect of this Notification: The 'Diamond Imprest Authorisation' (DIA) Scheme has been introduced to boost exports of Diamonds from India. The scheme will be implemented with effect from 01.04.2025.
This issues with the approval of Minister of Commerce & Industry.
[Image omitted. See the official document.]
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Additional Secretary to the Government of India
E-mail: dgft@nic.in
(Issued from File No. 01/94/180/152/AM20/PC-4)
