Introduction of new paras in Chapter 4 of Handbook of - 21st January 2025 - Ministry of Commerce and Industry - Gazette Notification PDF
Issued by Ministry of Commerce and Industry · Directorate General Of Foreign Trade
Read or download the official PDF of this gazette notification issued by the Ministry of Commerce and Industry on 21st January 2025.
Executive Summary & Key Takeaways
Executive Summary: This Public Notice from the Directorate General of Foreign Trade introduces new paragraphs in Chapter 4 of the Handbook of Procedures 2023, outlining the procedure for the Diamond Imprest Authorisation (DIA) scheme, as per the Foreign Trade Policy 2023. It details application processes, import/export conditions, and general provisions related to DIA. The scheme will be operational from April 1, 2025.
Key Points / Main Content:
Diamond Imprest Authorisation (DIA) Application:
- Applications for DIA must be submitted online using ANF 4J to the concerned Regional Authority as specified in Appendix 4A.
Conditions for Imports and Exports:
- Imports and exports are permitted only through Mumbai Airport.
- Import is subject to pre-import condition.
- Export obligation must be fulfilled through physical export of natural cut and polished diamonds, each weighing no more than 0.25 carats. One-to-one correlation between import and export is not required.
- A minimum value addition of 10% must be achieved in freely convertible currency. Para 2.52(d) of FTP 2023 is not applicable.
- Deemed exports are not allowed.
- Before customs clearance, a bond equal to the export obligation and a bank guarantee equivalent to the duty foregone must be executed.
- Only exports made after the import date will be accepted for export obligation discharge. Shipping Bills must be endorsed with the DIA number.
General Provisions:
- DIA validity for import is 12 months from the date of issuance.
- The export obligation period is 18 months from the date of issuance.
- Only one authorisation is allowed per IEC per financial year.
- No ARO/Invalidation letter/Certificate of supply (COS) is allowed against DIA.
- Imported material may be used in any unit of the DIA holder, or by a jobber supporting manufacturer endorsed by the Regional Authority. Co-licensee facility is not available.
- Goods exported under DIA may be re-imported subject to Department of Revenue conditions. The Regional Authority must be informed of re-importation within one month.
- No extension or revalidation of the export obligation period will be allowed.
Fulfilment of Export Obligation:
- DIA holders must file an online application in ANF 4K to the concerned Regional Authority, with uploaded supporting documents.
Regularisation of Bonafide Default:
- Bonafide defaults in fulfilling export obligations may be regularised by the Regional Authority.
- The DIA holder must pay customs duty on unutilized imported material, along with interest as notified by the Department of Revenue (DoR) through ICEGATE.
- The DIA holder must also pay 1% of the shortfall in FOB value in Indian Rupees online through the DGFT website.
New Form:
- A new ANF 4J form has been introduced for the issuance of fresh DIAs.
Impact Analysis:
Diamond Importers/Exporters:
- Impact: Must adhere to the new procedures for obtaining and utilizing Diamond Imprest Authorisations, including application processes, import/export conditions, and timelines.
- Action Required: Familiarize themselves with the new guidelines, submit applications using ANF 4J, ensure compliance with import/export conditions, and fulfill export obligations within the stipulated timeframe.
Regional Authorities:
- Impact: Responsible for processing DIA applications, monitoring compliance with the scheme, and regularising bonafide defaults.
- Action Required: Implement the new procedures, process applications received in ANF 4J, oversee compliance, and handle regularization of defaults as per the guidelines.
Customs Authorities:
- Impact: Responsible for overseeing imports and exports under the DIA scheme, ensuring compliance with import conditions and export obligations.
- Action Required: Enforce import/export conditions, collect bonds and bank guarantees, and ensure that shipping bills are endorsed with the DIA number.
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority of the Public Notice, responsible for foreign trade policy.
Foreign Trade Policy, 2023: The overarching policy framework under which the amendments to Handbook of Procedures 2023 are made.
Handbook of Procedures, 2023: The document being amended by this Public Notice, specifically Chapter 4.
Diamond Imprest Authorisation: A scheme allowing duty-free import of diamonds for export purposes, the main subject of the public notice. Abbreviated as DIA.
Mumbai Airport, Maharashtra: The designated port through which imports and exports under the Diamond Imprest Authorisation scheme are permitted.
Customs Authority: The authority responsible for overseeing the import and export of goods, including the execution of bonds and bank guarantees under the Diamond Imprest Authorisation scheme.
Department of Revenue: The department specifying conditions for re-importation of goods exported under the Diamond Imprest Authorisation.
Santosh Kumar Sarangi: The Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India, who issued the Public Notice.
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(TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY PART-I SECTION-I)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Public Notice No.'/2 /2024-25
New Delhi, Dated: 2.) January 2025
Subject: Introduction of new paras in Chapter 4 of Handbook of Procedures, 2023.
In exercise of powers conferred under Paragraph 1.03 and 2.04 of the Foreign Trade
Policy, 2023, as amended from time to time, the Director General of Foreign Trade hereby
makes the following amendments in Chapter 4 of the Handbook of Procedures 2023:
1. New paras may be added to the HBP 2023, as follows:
4.94 Filing of Application for Diamond Imprest Authorisation (DIA)
The policy regarding Diamond Imprest Authorisation is outlined in the FTP 2023. Applicants
shall submit their application online using ANF 4J to the concerned Regional Authority, as
specified in Appendix 4A.
4.95 Conditions of Imports & Exports
Imports and exports shall be permitted only through Mumbai Airport.
ii. The import is subject to pre-Import condition.
iii. The export obligation shall be fulfilled exclusively through physical export of Natural
Cut and Polished Diamonds, with each diamond weighing no more than % of a Carat (25 Cents).
One to one correlation between import and export shall not be required.
iv. The holder of DIA must achieve a minimum value addition of 10% by realizing in Freely
Convertible Currency. Provision of Para 2.52 (d) of FTP 2023, shall not be applicable to this
scheme.
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v. Deemed exports are not allowed under this scheme.
vi. Before clearance of goods through Customs, the holder of Diamond
Imprest Authorisation (DIA) shall execute a Bond equal to the export obligation of DIA along
with a performance Bank Guarantee of an amount equivalent to the duty foregone, with
concerned Customs Authority.vii. Only those exports which are made after the date of import, may be accepted towards
discharge of export obligation. Shipping Bills with relevant Scheme Code as per Customs
Notification need to be endorsed with the Diamond Imprest Authorization Number, to establish
co-relation of exports with the DIA issued.
4.96 General Provision
i. For the purpose of import, the validity of DIA is 12 months from the date of issuance of
Authorisation.
ii. Period of fulfilment of export obligation is 18 months from the date of issuance of
Authorisation.
iii. Only one authorisation is allowed for one IEC for a particular financial year.
iv. No ARO/Invalidation letter/Certificate of supply (CoS) is allowed against DIA.
v. Imported material may be used in any unit of Diamond Imprest Authorisation holder
subject to condition of paragraph 4.10 of this Handbook or by jobber / supporting manufacturer,
provided same is endorsed on authorisation by Regional Authority. The facility of Co-licensee is
not available for the DIA.
vi. Goods exported under Diamond Imprest Authorisation may be re-imported in same or
substantially same form subject to such conditions as may be specified by Department of
Revenue. Authorisation holder shall also inform about such re- importation to the Regional
Authority which had issued the Authorisation within one month from the date of re-import.
vii. No extension of export obligation period will be allowed against DIA.
viii. No Revalidation will be allowed against DIA
4.97 Fulfilment of export obligation
Diamond Imprest Authorisation holder shall file online application in ANF 4K to Regional
Authority concerned, as specified in Appendix 4A and upload prescribed documents in support
of fulfilment of export obligation.
4.98 Regularisation of Bonafide Default in fulfilment of export obligation
Cases of bonafide default in fulfilment of Export Obligation may be regularised by Regional
Authority-as under:
(i). | The DIA holder shall, for regularization, pay to Customs Authorities, Customs duty on
unutilized value of imported material along with interest as notified by DoR. DIA holder shall
pay Customs Duty along-with applicable interest online through ICEGATE Payment Gateway.
| a(ii). | Authorisation holder shall also be required to pay an amount equivalent to 1% of the
shortfall in FOB value in Indian rupee, online through DGFT website into major “Head of
Account: 1453, Foreign Trade and Export Promotion and Minor Head 102".
2. New ANF 4J (for issuance of fresh DIA) has been introduced.
Effect of the Public Notice: The procedure for implementing the Diamond Imprest
Authorisation scheme is outlined. The scheme will be operationalized with effect from
01.04.2025.
Nok
(Santosh ‘imar Sarangi)
Director General of Foreign Trade
Ex-officio Addl. Secretary to the Government of India
e-mail: dgft@nic.in
(Issued from File No. 01/94/180/152/AM20/PC-4)