The Department of Commerce, Government of India, has launched the Diamond Imprest Authorisation (DIA) Scheme to enhance India’s global competitiveness in the diamond sector. The scheme will take effect on 1st April 2025 and aims to support exporters and sustain the growth of the domestic diamond industry through duty-free imports of Natural Cut and Polished Diamonds under specific conditions.
Piyush Goyal, Minister of Commerce & Industry, initially revealed the government’s decision to reintroduce the Diamond Imprest Licence (DIL) at the IIJS Premiere 2024 in Mumbai on 10th August 2024.
Key Features of the DIA Scheme
- Duty-free import of Natural Cut and Polished Diamonds under ¼ carat (25 cents), including semi-processed, broken, and half-cut diamonds.
- Export obligation with a value addition of 10%.
- Eligibility for exporters holding Two Star Export House status or above with $15 million exports annually over the past three fiscal years and compliant with GST and IT filings.
- The DIL value will be 5% of the average exports over three years, with a maximum limit of $15 million per year.
- Validity: One year for import and 18 months for export.
- Import under Actual User Condition without mandatory one-to-one correlation between imported and exported diamonds.
- Export transactions must be paid in Free Foreign Exchange.
- Mumbai Airport will serve as the exclusive import-export point.
Applications must be submitted online via the ANF-4J Form to the respective Regional Authority.
The scheme is a response to beneficiation policies adopted by diamond-mining nations such as Botswana, Namibia, and Angola, where manufacturers are mandated to establish polishing facilities to meet value-addition thresholds.
Vipul Shah, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), expressed gratitude for the initiative, stating, “This timely move will bolster MSME exporters, safeguard employment, and secure India’s position as a global leader in diamond processing. It will rejuvenate the industry by enabling value addition and enhancing competitiveness.”
The DIA Scheme aims to provide a level playing field for Indian diamond exporters, particularly MSMEs, and prevent the outflow of investments to diamond-mining countries. It is expected to create employment opportunities for skilled craftsmen, including diamond assorters and factory workers while helping India maintain its leadership in the global diamond trade.
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