DGFT Introduces Diamond Imprest Authorisation Scheme under Foreign Trade Policy 2023 [Read Notification]

The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade ( DGFT ), issued Notification No. 53/2024-25 dated January 2, 2025, announcing the introduction of the Diamond Imprest Authorisation ( DIA ) Scheme under Chapter 4 of the Foreign Trade Policy ( FTP ) 2023. The Diamond Imprest Authorization Scheme will be implemented starting April 1, 2025.

What is the DIA Scheme?

The Diamond Imprest Authorization permits the import of natural cut and polished diamonds, including semi-processed, half-cut, and broken diamonds, provided each diamond weighs no more than 0.25 carats (25 cents).

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This authorization requires exporters to fulfill an export obligation by physically exporting natural cut and polished diamonds with a minimum value addition of 10%, calculated in free foreign exchange, within a specified timeframe. All obligations must be discharged following the procedures specified in the scheme. It is important to note that the Diamond Imprest Authorization does not apply to lab-grown diamonds ( LGDs ).

4.61 – Eligibility

To qualify for the Diamond Imprest Authorization: The exporter must hold a Two Star Export House status or higher. They must have achieved an annual export of at least $15 million in cut and polished diamonds for each of the last three financial years. The exporter should have filed all GST (Goods and Services Tax) and Income Tax returns for those three years.

Import Limits: The authorization allows imports of natural cut and polished diamonds up to 5% of the exporter’s average annual export performance of the past three years. The total import value is capped at a maximum of $15 million.

4.62 – Export Obligation

Export obligations for each import must be completed within six months from the date the consignment clears customs. Both imports and exports under this scheme are restricted to transactions through Mumbai Airport only. Importers are required to maintain proper records of their imports and exports for any future inspection.

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4.63 – Duty Exemptions

The scheme offers exemptions from several duties, reducing import costs significantly. These include:

1. Basic Customs Duty.
2. Additional Customs Duty.
3. Education Cess.
4. Anti-Dumping Duty.
5. Countervailing Duty.
6. Safeguard Duties and Product-Specific Transition Safeguard Duties.
7. Integrated Tax and Compensation Cess under the Customs Tariff Act, 1975.

These exemptions make importing raw diamonds more economical for exporters.

4.64 – Actual User and Pre-Import Conditions

Actual User Condition: The Diamond Imprest Authorization and the diamonds imported under it can only be used by the authorized importer. These materials cannot be transferred or sold, even after the exporter fulfills their export obligations.

Pre-Import Condition: The scheme mandates compliance with pre-import conditions, meaning all required steps and criteria must be met before the import is carried out.

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Additionally, Sub-para (v) is added to Para 4.32 of the Foreign Trade Policy, specifying the inclusion of the Diamond Imprest Authorization Scheme.

The Diamond Imprest Authorization Scheme is designed to boost diamond exports from India by providing financial and operational benefits to eligible exporters.

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