DGFT Exempts Diamond Imports from Multiple Duties, Updates Regulations

The Directorate General of Foreign Trade (DGFT) has announced significant changes regarding the importation of diamonds under the Diamond Import Authorisation (DIA). Effective from August 19, 2025, the latest notification exempts such imports from several duties, including Basic Customs Duty, Additional Customs Duty, and various other levies.

According to notification number 25/2025-26, this exemption applies to duties such as Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product-Specific Safeguard Duty. However, it is important to note that the Integrated Goods and Services Tax (IGST) and the Compensation Cess remain applicable to these imports.

Changes to Documentation Requirements

In a further update, the DGFT has amended existing documentation requirements. Exporters can now submit a Chartered Accountant (CA) certificate in place of the latest Income Tax Return (ITR) when applying under the DIA scheme. This adjustment allows exporters to fulfill requirements even if their ITR for the preceding year is not finalized. Nonetheless, they must provide proof of submission of the ITR by December 31 of the application year.

The notification revises Paragraphs 4.61 and 4.63 of the Foreign Trade Policy (FTP) 2023, clarifying the eligibility criteria and the extent of the exemptions.

Eligibility Criteria for Diamond Imprest Authorization

Under the revised Paragraph 4.61, exporters holding a Two Star Export House status or higher, who have achieved a minimum export performance of US$ 15 million in Cut and Polished Diamonds annually for the past three financial years, may qualify for the Diamond Imprest Authorization. This authorization permits the import of Natural Cut and Polished Diamonds up to 5% of the average annual export performance over the previous three years, subject to a maximum value of US$ 15 million.

Revised Paragraph 4.63 further confirms that imports under the Diamond Imprest Authorization will continue to be exempt from multiple duties, enhancing the competitive landscape for diamond exporters in India.

As the diamond industry navigates these changes, stakeholders are encouraged to review the full notification for details on compliance and application processes.

This update marks an important shift in trade policy for the diamond sector, potentially easing the financial burden on exporters and enhancing the overall business environment.