Introduction of new Scheme as 'Diamond Imprest Authorisation' under Chapter - 21st January 2025 - Ministry of Commerce and Industry - Gazette Notification PDF
Issued by Ministry of Commerce and Industry · Directorate General Of Foreign Trade
Global Capability Centers It Services
Technology Telecom
Telecom & Satcom
Foreign Affairs And Treaties
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 notification introduces the Diamond Imprest Authorisation (DIA) scheme under Chapter 4 of the Foreign Trade Policy 2023, effective from April 1, 2025. The scheme facilitates the import of natural cut and polished diamonds for export purposes, aiming to boost diamond exports from India. It outlines eligibility criteria, export obligations, and duty exemptions for authorized importers.
Key Points / Main Content:
Diamond Imprest Authorisation (DIA) Scheme:
- Allows import of Natural Cut and Polished Diamonds (up to 4 Carat 25 Cents each, including semi-processed diamonds) for physical export of similar diamonds.
- Requires a minimum value addition of 10% to be realized in Free Foreign Exchange.
- Does not apply to Lab-Grown Diamonds (LGDs).
- Authorisation is subject to Pre-Import Condition.
Eligibility:
- Available to exporters with Two Star Export House status or above.
- Requires a minimum export performance of US 15 million in Cut and Polished Diamonds each year for the past three financial years.
- Requires filing of all GST and Income Tax returns for the past three financial years.
- Import allowed up to 5% of the average annual export performance of Cut and Polished Diamonds over the previous three financial years, with a maximum value of US 15 million.
Export Obligation:
- Must be fulfilled within six months from the date of customs clearance for each import consignment.
- All imports and exports must be made through Mumbai Air Port.
- Importers must maintain records of imports and exports for inspection.
Duties Exempted:
- Exempts imports under DIA from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty.
- Exempts imports from Integrated Tax and Compensation Cess.
Actual User Condition:
- DIA and imported materials are subject to Actual User condition.
- Not transferable, even after completion of export obligation.
Amendment to FTP 2023:
- Adds Diamond Imprest Authorisation to para 4.32 of FTP.
Impact Analysis:
Diamond Exporters:
- Impact: Can benefit from duty exemptions on diamond imports, potentially increasing export competitiveness and boosting trade.
- Action Required: Determine eligibility, apply for Diamond Imprest Authorisation, adhere to export obligations and reporting requirements, and ensure compliance with actual user conditions.
Customs Authorities:
- Impact: Need to implement and oversee the DIA scheme, including processing imports and exports through Mumbai Air Port and ensuring compliance with regulations.
- Action Required: Update customs procedures to accommodate DIA, monitor imports and exports, and conduct inspections.
Directorate General of Foreign Trade (DGFT):
- Impact: Responsible for implementing and monitoring the new scheme, including addressing any challenges or issues that may arise.
- Action Required: Provide guidance and support to exporters, monitor the scheme's effectiveness, and make adjustments as necessary.
Key Entities Referenced
Foreign Trade Policy 2023: The current Foreign Trade Policy under which the new Diamond Imprest Authorisation scheme is introduced.
Diamond Imprest Authorisation: A new scheme introduced under Chapter 4 of the Foreign Trade Policy 2023, allowing import of natural cut and polished diamonds for export purposes.
Foreign Trade Development and Regulation Act, 1992: The Act that confers powers to the Central Government to make amendments to the Foreign Trade Policy.
Ministry of Commerce and Industry: The government ministry responsible for foreign trade and the introduction of the Diamond Imprest Authorisation scheme.
Directorate General of Foreign Trade: The agency within the Ministry of Commerce and Industry responsible for implementing the Foreign Trade Policy.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India who approved the notification.
Mumbai Air Port: The designated port for all imports and re-exports under the Diamond Imprest Authorisation scheme.
Customs Tariff Act, 1975: Act under which Integrated Tax and Compensation Cess are levied, from which imports under Diamond Imprest Authorisation are exempted.
Official Gazette PDF Record
Download Official PDF (Introduction of new Scheme as...) →
Official Gazette Notification PDF Viewer
See Full Document Text & PDF Transcript
[To be Published in the Gazette of India Extraordinary Part-II, Section -3, Sub-Section (ID]
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi,
Notification No. 5 3 / 2024-25
New Delhi Dated: 2 | January 2025
Subject: Introduction of new Scheme as ‘Diamond Imprest Authorisation’ under Chapter
4 of Foreign Trade Policy 2023.
S.0.(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 %4 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
Diamond8 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
peexports 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
Authorisation
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.
aes
M c
(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)