Amendment in policy conditions governing import and export in rough diamonds falling under Chapter 71 of Schedule (I) of ITC(HS) 2017 and Schedule(II) of ITC(HS) 2018

## Report on Amendment to Policy Governing Import and Export of Rough Diamonds in India **1. Executive Summary:** This report analyzes a notification issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, concerning an amendment to the policy conditions governing the import and export of rough diamonds. The core purpose of this amendment is to mandate registration with the Gems & Jewellery Export Promotion Council (GJEPC) for all importers and exporters of rough diamonds. This report details the changes, their rationale, affected stakeholders, and expected impact. **2. Introduction:** This report aims to provide a clear and concise overview of the amendment to the policy conditions governing the import and export of rough diamonds in India, as outlined in Notification No. 4320152020 dated November 22, 2021. The analysis is based solely on the provided policy text. **3. Policy Overview:** * **Amendment:** This report focuses on an amendment to the Foreign Trade Policy 2015-2020, specifically addressing regulations concerning rough diamond trade. * **Core Objective(s):** The core objective of the amendment, inferred from the text, is to ensure that all entities involved in the import and export of rough diamonds are registered with the Gems & Jewellery Export Promotion Council (GJEPC). This suggests a move towards better regulation and oversight of this sector. **4. Background and Rationale:** The provided text does not explicitly state the reason for this specific amendment. However, it can be inferred that the amendment aims to strengthen regulatory oversight within the rough diamond trade by requiring mandatory registration with the GJEPC. This might be related to complying with the Kimberley Process Certification Scheme (KPCS) as the GJEPC is named the designated importing and exporting authority for it. **5. Key Provisions / Changes:** This is an amendment, and here are the key changes: * **Original Policy Part Changed:** The amendment affects Chapter 71 of Schedule I (Import Policy) of ITC HS 2017 and Chapter 71 of Schedule II (Export Policy) of ITCHS 2018. * **New Rule/Provision:** * **Import:** Policy condition No. 05 is inserted under chapter 71 of Schedule I Import Policy of ITC HS 2017. It states that "Import of rough diamonds shall not be permitted unless the concerned importer is registered with Gems Jewellery EPC, which is the designated importing and exporting authority of India for Kimberley Process Certification Scheme KPCS." * **Export:** Policy condition No. 01 is inserted in the Chapter 71 of Schedule II Export Policy of ITCHS 2018. It states that "Export of rough diamonds shall not be permitted unless the concerned exporter is registered with Gems Jewellery EPC, which is the designated importing and exporting authority of India for Kimberley Process Certification Scheme KPCS." * **Difference/Effect of Change:** Previously, registration with GJEPC may not have been a mandatory requirement for importing or exporting rough diamonds. The amendment introduces this requirement, meaning that companies now *must* register with GJEPC to legally participate in this trade. This provides GJEPC with a mechanism to track and regulate these entities. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders are: * All businesses and individuals currently involved in, or planning to be involved in, the import and/or export of rough diamonds in India. * The Gems & Jewellery Export Promotion Council (GJEPC), which will be responsible for managing the registration process. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Gems & Jewellery Export Promotion Council (GJEPC) is identified as the responsible body for registration. The Directorate General of Foreign Trade (DGFT) is responsible for issuing the notification and overseeing the policy. * **Timelines/Procedures:** The text does not specify any immediate timelines, but the amendment is effective immediately upon notification. Businesses involved in the rough diamond trade must register with the GJEPC to continue their operations. The specific registration procedures are not detailed in the text and would likely be outlined by the GJEPC. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Enhanced Regulatory Oversight:** Mandatory registration with GJEPC provides a mechanism for better monitoring and control of entities involved in rough diamond trade. * **Improved Compliance:** The amendment aims to ensure compliance with international standards, possibly the Kimberley Process Certification Scheme (KPCS), by making GJEPC registration a prerequisite for import and export. * **Reduced Illicit Trade:** By increasing oversight, the amendment may contribute to reducing illicit trade in rough diamonds. * **Administrative Burden:** Industry will need to comply with GJEPC registration requirements. **9. Conclusion:** The amendment to the policy governing the import and export of rough diamonds in India, as outlined in the provided notification, introduces a mandatory registration requirement with the Gems & Jewellery Export Promotion Council (GJEPC). This change aims to strengthen regulatory oversight, improve compliance with international standards, and potentially reduce illicit trade in the sector. The implementation of this amendment is significant for all businesses involved in the rough diamond trade.

Key Entities Referenced