Dept of Commerce introduces Diamond Imprest Authorization Scheme | Read

This scheme provides a streamlined mechanism for the duty-free import of Natural Cut and Polished Diamonds, and there by promoting value addition and boosts exports. The Scheme will be implemented with effect from 01.04.2025.

Key Features of the Scheme:

• 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 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 manufacturers 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 the 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 asserters 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 is also expected to create employment opportunities for skilled craftsmen in the diamond industry and is also expected to increase the export of Cut and Polished diamonds from India.

The diamond industry is witnessing a steep decline in exports and job losses for workers. This scheme is expected to combat this trend and will rejuvenate the Diamond Industry.