In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts cut and polished diamonds falling within chapter 71 of the First schedule to the Customs Tariff Act, 1975 (51 of 1975), when re-imported into India after certification/grading by the laboratories / agencies as notified in the Foreign Trade Policy in this regard, from the whole of the duty of customs leviable thereon which is specified in the First Schedule and from the whole of integrated tax leviable under sub-section (7) of section 3 of the Customs Tariff Act,1975, subject to fulfillment of the following conditions namely:-

i) Cut and polished diamonds are re-imported by gems and jewellery exporters having a track record of at least three years and having an annual average turnover of five crore rupees and above during the preceding three licensing years;

ii) Each piece of cut & polished diamonds so re-imported shall not be less than 0.25 of a carat in weight;

iii) Cut and polished diamonds shall be re-imported within a period of three months from the date of exportation;

iv) Cut and polished diamonds shall be allowed to be re-imported only on production of certification/grading report from the said laboratories or agencies; and

v) Cut and polished diamonds so re-imported shall match with corresponding diamonds mentioned in the invoice at the time of exportation in terms of value, height, circumference and weight.

Provided that a variance not exceeding +_ 0.05 mm in diameter for round shape diamonds and +_ 0.07 mm in length and breadth for diamonds of other shapes and variance not exceeding +_ 1 cent in weight shall be allowed.

2. Notwithstanding anything contained herein above, the exemption contained in this notification shall also be applicable, if the exportation and re-importation of cut and polished diamonds as stated above are undertaken by the authorised offices or agencies in India of the laboratories mentioned under paragraph 4.73 of Handbook of Procedures on behalf of the exporters subject to the fulfillment of conditions (ii),(iii),(iv) and(v) specified herein above and in the Foreign Trade Policy and Handbook of Procedures.

Provided that for the cases where the last date of re-import falls between the 1st February, 2020 and the 31st July, 2020, the last date stands extended by three months;

Explanation. - 'Foreign Trade Policy' means Foreign Trade Policy, 2023 notified by the Government of India, Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii) vide Notification No 1/2023, dated the 31st March, 2023.

[Raj Kumar Digvijay]

Under Secretary to the Government of India

Amended by Notification No. 27/2012-Customs, dated 18/04/2012, No. 11 /2013-Customs, dated 01/03/2013, No. 16/2014-Customs dated 11th July, 2014, No. 7/2017 - Dated 1-3-2017, No. 60/2017 - Dated 30-6-2017, 1st July, 2017