Govt Introduces Duty-Free Import Scheme For Diamonds, Effective April 2025
Date
1/22/2025 4:33:44 AM
(MENAFN- KNN India)
New Delhi, Jan 22 (KNN) The Department of Commerce has unveiled a new initiative called the Diamond Imprest Authorisation (DIA) Scheme, set to take effect from April 1, 2025.
The scheme, announced on January 21, 2025, introduces a streamlined process for duty-free import of Natural Cut and Polished Diamonds, specifically targeting stones less than 1/4 Carat (25 Cents).
Under the new framework, eligibility is restricted to diamond exporters who hold Two Star Export House status or higher and maintain annual exports of at least USD 15 Million.
The scheme requires participants to fulfil an export obligation with a minimum value addition of 10 per cent, ensuring substantial domestic processing activity.
The DIA Scheme is particularly designed to support MSME exporters by creating a more equitable competitive environment within the industry.
It is expected to generate additional employment opportunities, especially for diamond assorters and workers involved in processing semi-finished diamonds, while safeguarding the domestic diamond processing sector.
The initiative comes as a strategic response to beneficiation policies implemented by major diamond-producing nations such as Botswana, Namibia, and Angola, where manufacturers are required to establish local cutting and polishing facilities.
This move aims to preserve India's dominant position across the diamond industry's value chain and prevent potential investment migration to diamond-mining countries.
This policy intervention comes at a crucial time when the diamond industry faces significant challenges, including declining exports and workforce reductions.
The government anticipates that the scheme will help reverse these trends, reinvigorate the sector, and strengthen India's position in the global diamond trade while ensuring adherence to international standards and improving ease of doing business.
(KNN Bureau)
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