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Date: 23-Jan-2025 Category: Extra Ordinary State: Union Government Country: India

Introduction of new Scheme as Diamond Imprest Authorisation under Chapter 4 of Foreign Trade Policy 2023

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

What it means

  • The gazette notification introduces a new scheme called 'Diamond Imprest Authorisation' (DIA) under Chapter 4 of the Foreign Trade Policy 2023.
  • The DIA scheme aims to facilitate the import of natural cut and polished diamonds, including semi-processed, half-cut, and broken diamonds (each weighing no more than 1/4 carat or 25 cents), for the purpose of exporting natural cut and polished diamonds.
  • The scheme mandates a minimum value addition of 10% on the imported diamonds, to be realized in free foreign exchange within a specified time.

Key Changes

  • A new 'Diamond Imprest Authorisation' (DIA) scheme is introduced under Chapter 4 of the Foreign Trade Policy 2023.
  • The scheme allows import of natural cut and polished diamonds, including semi-processed, half-cut, and broken diamonds (each not exceeding 1/4 carat or 25 cents).
  • The scheme mandates a minimum 10% value addition on exported diamonds, to be realized in free foreign exchange within a specified time.
  • The DIA scheme is not applicable to lab-grown diamonds (LGDs).
  • Only exporters with a 'Two Star Export House' status or higher, having achieved a minimum export performance of US$ 15 million in cut and polished diamonds annually for the past three financial years and having filed GST and Income Tax returns for those years, are eligible.
  • Eligible exporters can import natural cut and polished diamonds up to 5% of their average annual export performance of cut and polished diamonds over the previous three financial years, subject to a maximum value of US$ 15 million.
  • The export obligation against each import consignment must be fulfilled within six months from the date of clearance through customs.
  • All imports and exports under this scheme must be made through Mumbai Airport.
  • Imports under the DIA scheme are exempted from various duties, including Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, Integrated Tax and Compensation Cess.
  • The imported material under DIA is subject to 'Actual User' condition and is not transferable even after completion of export obligation.
  • The DIA is subject to Pre-Import Condition.
  • The scheme will be implemented with effect from 01.04.2025.

Impact Analysis

Exporters

  • Action Item: Exporters need to ensure compliance with the export obligation, value addition, and timelines.

Government

  • Action Item: The government needs to create awareness about the scheme among the exporters.

Customs Authorities

  • Action Item: Customs authorities need to maintain records of imports and exports under the DIA scheme.

Diamond Industry

  • Action Item: The industry needs to adapt to the new scheme and capitalize on the opportunities it provides.

Key Entities Referenced

Foreign Trade Policy 2023: The policy under which the 'Diamond Imprest Authorisation' scheme is introduced. Foreign Trade (Development and Regulation) Act, 1992: The Act that empowers the Central Government to formulate foreign trade policies. Customs Tariff Act, 1975: The Act governing customs duties, which are exempted under the DIA scheme. Directorate General of Foreign Trade (DGFT): The authority that issued the notification and is responsible for the implementation of the Foreign Trade Policy. Mumbai Airport: The only designated airport for imports and exports under the DIA scheme.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-24012025-260432 CG-DxLx-xEG-I2D4H0x1x2x0 25-260432 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 435] नई दिल्ली, वृहस्ट्पजतवार िनवरी 23, 2025/माघ 3, 1946 No. 435] NEW DELHI, THURSDAY, JANUARY 23, 2025/MAGHA 3, 1946 ( ) fons'k O;kikj egkfuns'kky; का.आ. 439(अ).— le;&le; ij ;Fkk la'kkfsèkr] fons'k O;kikj uhfr 2023] ds iSjk 1-02 ds lkFk ifBr fons'k O;kikj ¼fodkl ,oa fofu;eu½ vfèkfu;e] 1992] dh èkkjk 5 ds lkFk ifBr èkkjk 3 ds rgr inz Ùk 'kfä;kas dk ç;kxs djrs gq,] dsUæ ljdkj ,rn~}kjk fons'k O;kikj uhfr 2023 ds vè;k; 4 esa fuEufyf[kr la'kkès kukas dk s vf/klwfpr djrh gS% izk—frd :i ls dVs vkSj ikWfy'k fd, ghjkas ds vk;kr ds fy, ghjk vxnz k; izkfèkdkj&i= fn;k tk ldrk gS] ftles v/kZ&lalkf/kr] vkèk s dVs vkSj VwVs gq, ghjs 'kkfey gSa] ftlesa çR;sd ds dSjsV ds out dk 1@4 ¼25 lSaV½ ls vfèkd ugÈ gS] ftlds rgr çk—frd :i ls dVs vkSj i‚fy'k fd, ghjkas dk HkkSfrd 619 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] fu;kZr fd;k tkuk gSA ,ls s izkfèkdkj&i= ij fofuÆn"V le;&lhek ds Hkhrj] eqä fons'kh eqæ esa 10% dk U;wure ewY; oèkZu çkIr djus dk ,d fu;kZr nkf;Ro gksxk] ftls bl lacèa k eas fofuÆn"V çfØ;k ds vuqlkj iwjk fd;k tkuk gksxkA ghjk vxznk; izkfèkdkj&i= ySc&xzksu MkbeaM~l ¼,ythMh½ ij ykx w ugÈ gksxk A nk s flrkjk fu;kZr gkÅl Lrj ;k blls Åij okyk ,d fu;kZrd vkjS ftlus fiNys rhu foÙkh; o"kk±s eas çR;ds o"kZ dVs gq, vkSj i‚fy'k fd, ghjks a es a 15 fefy;u vejhdh M‚yj dk U;wure fu;kZr fu’iknu izkIr fd;k gS vkSj mu o"kk±s dh th,lVh vkSj vk;dj fjVuZ Hkjk gS] mls ghjk vxznk; izkfèkdkj&i= fn;k tk ldrk gSA ;g çkfèkdkj i= 15 fefy;u vejhdh M‚yj ds vfèkdre eYw ; ds vèkhu fiNys rhu foÙkh; o"kk±s ij dVs gq, ,o a i‚fy'k fd, gq, ghjkas ds vkSlr okÆ"kd fu;kZr fu’iknu ds 5% rd çk—frd :i ls dVs ,o a i‚fy'k fd, gq, ghjks a dks vk;kr vuqer djrk gSA çR;ds vk;kr [ksi ds rgr fu;kZr nkf;Ro lhek 'kqYd ds ekè;e ls ,ls h [ksi dh fudklh dh frfFk ls 6 ekg dh vofèk ds Hkhrj iwjk fd;k tk,xkA lHkh vk;kr vkSj fu;kZr dsoy eqEoà gokà iÙku ds ekè;e ls fd, tk,xa As vk;krd dk s ckn eas fujh{k.k ;fn dkbs Z gks] ds fy, vk;kr ,oa fu;kZr ls lEcaf/kr leLr nLrkostksa dk çklafxd@mfpr fjd‚MZ cuk, j[kuk vko';d gkxs kA ghjk vxznk; çkfèkdkj&i= ds varxZr vk;krks a dk s ewy lhek 'kqYd] vfrfjä lhek 'kqYd] f'k{kk midj] ikVu&jksèkh 'kqYd] çfrdkjh 'kqYd] lqj{kk 'kqYd] ifjorZu mRikn fof'k"V lqj{kk 'kqYd] tgka Hkh ykx w gks] ds Hkqxrku ls NwV nh xà gSA ,ls s vk;krks a dk s lhek 'kqYd iz”kqYd vfèkfu;e] 1975 ¼1975 dk 51½ dh èkkjk 3 dh mi&èkkjk ¼7½ vkSj mi&èkkjk ¼9½ ds varxZr Øe'k% yxk, tkus okys laiw.kZ ,dh—r dj vkSj {kfriwÆr midj ls Hkh NVw nh xà gSA ¼i½ ghjk vxznk; çkfèkdkj i= vkSj ghjk vxznk;h çkfèkdkj i= ds varxZr vk;kfrr lkexzh *okLrfod mi;kxs drk*Z 'krZ ds vèkhu gksxhA fu;kZr nkf;Ro iwjk gksus ds ckn Hkh bls gLrkra fjr ugÈ fd;k tk ldxs kA ¼ii½ ghjk vxnz k; çkfèkdkj i= vk;kr&iwoZ 'krZ ds vèkhu gSA v ¼v½ ghjk vxznk; çkfèkdkj i= Hkkjr ls ghjkas ds fu;kZr dk s c<+kok nsus ds fy, *ghjk vxznk; çkfèkdkj i=* ¼Mhvkb,½ Ldhe 'kq# dh xà gSA ;g Ldhe fnukad 01-04-2025 ls ykx w dh tk,xhA bls okf.kT; ,o a m|ksx ea=h ds vuqeksnu ls tkjh fd;k tkrk gSA Qk-l-a 01@94@180@152@,,e20@ihlh&4 [ ] lark"s k dqekj lkjaxh egkfuns'kd fons'k O;kikj vkSj insu vij lfpo[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) Directorate General of Foreign Trade NOTIFICATION New Delhi, 21st January 2025 No. 53/2024-25 Subject: Introduction of new Scheme as ‘Diamond Imprest Authorisation’ under Chapter 4 of Foreign Trade Policy 2023. S.O. 439(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: 1. New paras may be added to the FTP 2023, as follows: 4.60 Diamond Imprest Authorisation (DIA) 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). 4.61 Eligibility 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. 4.62 Export Obligation 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. 4.63 Details of Duties exempted 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). 4.64 Actual User Condition and Pre-Import Condition for Diamond Imprest Authorisation4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] i. Diamond Imprest Authorisation and material imported under Diamond Imprest Authorisation shall be subject to ‘Actual User’ condition. The same shall not be transferable even after completion of export obligation. ii. Diamond Imprest Authorisation is subject to Pre-Import Condition. 2. Sub para (v) may be added in para 4.32 of FTP as under: (v) Diamond Imprest Authorisation. 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. [F. No. 01/94/180/152/AM20/PC-4)] SANTOSH KUMAR SARANGI, Director General of Foreign Trade, Ex-Officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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