DGFT announces Exemption of Imports under DIA from Duties, CA Certificate Permitted in Lieu of Latest ITR [Read Notification]
The exemption does not extend to the Integrated Goods and Services Tax (IGST) and the Compensation Cess, which will continue to apply on such imports
DGFT announces Exemption of Imports
DGFT announces Exemption of Imports
The Directorate General of Foreign Trade ( DGFT ) has announced exemption of imports under the Diamond Import Authorisation (DIA) from the levy of multiple duties including Customs, Anti-dumping, Additional customs duty.. etc.
As per the notification no. 25/2025-26 dated 19th August 2025, such imports will be exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product-Specific Safeguard Duty, wherever applicable.
However, the exemption does not extend to the Integrated Goods and Services Tax (IGST) and the Compensation Cess, which will continue to apply on such imports.
Further, the directorate has permitted exporters to furnish a Chartered Accountant (CA) certificate in place of the latest Income Tax Return (ITR) at the stage of application under the scheme, with the condition that the proof of submission of said Income tax must be submitted by 31st December of the application year.
The notification has amended Para 4.61 and Para 4.63 of FTP-2023. The existing and the revised para are given below.
PARA 4.61
Existing Para 4.61
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.
Revised Para 4.61:
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.
Chartered accountant certificate may be submitted in case IT of the preceding year is not finalized. However, the same shall be submitted by 31st December of the application year. 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.
PARA 4.63
Existing Para 4.63:
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 subsection (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975).
Revised Para 4.63:
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.
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