DGFT Renumbers and Updates Provisions for Diamond Imprest Authorisation under Handbook of Procedures 2023 [Read Public Notice]

This public notice amends Public Notice No. 42/2024-25 dated January 21, 2025, and provides detailed guidance on the application process, operational conditions, and compliance requirements for diamond exporters and importers.

Under the revised provisions, the DGFT has reorganized the paragraphs from 4.95 to 4.99 to make the scheme more structured and easier to follow.

Key Amendments and Provisions

1. Filing of Application (Para 4.95)

Applicants seeking a Diamond Imprest Authorisation must apply using ANF 4J to the concerned Regional Authority as specified in Appendix 4A. This authorisation allows import of rough diamonds for export as polished diamonds under certain conditions.

2. Conditions of Imports and Exports (Para 4.96)

• Imports and exports are allowed only through Mumbai Airport.
• Import items are subject to pre-import conditions.
• Export obligation must be fulfilled only through physical export of natural cut and polished diamonds, each weighing not more than ¼ carat (25 cents).
• One-to-one correlation between import and export is not required.
• A minimum value addition of 10% in freely convertible foreign currency must be achieved.
• Deemed exports are not permitted.
• Importers must execute a Bond and Bank Guarantee equal to their export obligation value before customs clearance.
• Only exports made after the date of import are accepted toward export obligation.
• Shipping bills must carry the relevant Scheme Code and be endorsed with the DIA number.

3. General Provisions (Para 4.97)

• Validity of DIA: 12 months from the date of issue.
• Export obligation period: 18 months from date of issue.
• Only one authorisation per IEC per financial year.
• No ARO or Co-license facility is allowed.
• Imported materials can be used by the authorisation holder or supporting manufacturer but must be endorsed by the Regional Authority.
• Re-import of goods exported under DIA is allowed under certain conditions with Department of Revenue approval.
• No extension or revalidation of DIA is permitted.

4. Fulfilment of Export Obligation (Para 4.98)

Holders must file an online application in ANF 4K with supporting documents through the DGFT website to prove fulfilment of their export obligation.

5. Regularisation of Default (Para 4.99)

If exporters fail to meet their export obligation:

• They must pay Customs Duty and interest on the unutilized imported material through the ICEGATE portal.
• A payment of 1% of the shortfall in FOB value (in Indian Rupees) must be made under the Head of Account 1453 – Foreign Trade and Export Promotion.

This public notice officially renumbers and consolidates the DIA-related provisions originally issued under Public Notice No. 42/2024-25. The operational framework and compliance requirements remain largely unchanged but are now more systematically arranged for easier reference.

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