The Directorate General Of Foreign Trade (DGFT) has notified the Diamond Imprest Authorisation Scheme which supports the Ministry of Micro, Small and Medium Enterprises (MSME) diamond exporters.
Key Features
- This scheme allows the duty-free import of Natural Cut and Polished Diamonds, of less than ¼ Carat (25 Cents).
- This scheme mandates export obligation with a value addition of 10%.
- All Diamond exporters holding Two Star Export House status and above and having US $15 Million exports per year, are eligible for availing the benefit under this scheme.
The scheme is made in response to Beneficiation policies undertaken in a number of natural diamond mining countries like Botswana, Namibia Angola etc where Diamond manufactures are obliged to open cut and polishing facilities for a minimum percentage of value addition. This scheme is aimed towards retaining India’s position as a global leader in the entire value chain of Diamond industry.
The scheme is designed to provide a level playing field for Indian diamond exporters, particularly MSME exporters, enabling them to compete effectively with larger peers. It aims to prevent the potential flight of investments by Indian diamantaires to diamond-mining destinations. Additionally, the scheme is expected to generate more employment opportunities, particularly for diamond assorters and in the processing of semi-finished diamonds in factories. By facilitating Indian exporters, it seeks to protect the domestic diamond processing industry and sustain the associated employment.
The DIA Scheme reinforces India’s position as a leading player in the global diamond trade, ensuring compliance with international standards while facilitating ease of doing business. This scheme also expected to create employment opportunities for skilled craftsmen in diamond industry and is also expected to increase the export of Cut and Polished Diamond from India.
The diamond industry is witnessing a steep decline in exports and job losses for the workers. This scheme is expected to combat this trend and will rejuvenate the Diamond Industry.
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.
Conditions of Imports & Exports
Imports and exports shall be permitted only through Mumbai Airport.
The import is subject to pre-Import conditions.
The export obligation shall be fulfilled exclusively through physical export of Natural Cut and Polished Diamonds, with each diamond weighing no more than 1⁄4 of a Carat (25 Cents). One to one correlation between import and export shall not be required.
The holder o f 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.
Deemed exports are not allowed under this scheme.
Before clearance of goods through Customs, the holder o f Diamond Imprest Authorisation (DIA) shall execute a Bond equal to the export obligation ofDIA along with a performance Bank Guarantee of an amount equivalent to the duty foregone, with concerned Customs Authority.
Fulfilment of export obligation
Diamond Imprest Authorisation holders shall file an online application in ANF K4 to Regional Authority concerned, as specified in Appendix 4A and upload prescribed documents in support of fulfilment of export obligation.
Regularisation of Bonafide Default in fulfilment of Export Obligation
The DIA holder shall, for regularization, pay ot Customs Authorities, Customs duty on unutilized value of imported material along with interest as notified by Do. DIA holder shall pay Customs Duty along-with applicable interest online through ICEGATE Payment Gateway.
Authorisation holder shall also be required to pay an amount equivalent to 1% of the shortfall ni FOB value ni Indian rupee, online through DGFT website into major “Head of Account: 1453, Foreign Trade and Export Promotion and Minor Head 102”
Read More: DGFT Introduces New Scheme Of ‘Diamond Imprest Authorisation’
Public Notice
Public Notice No. 42 /2024-25
Date: 21/01/2025
