In a recent update from the Ministry of Commerce and Industry, the Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 26/2025-2026, dated October 15, 2025. This notice amends the earlier Public Notice No. 42/2024-25 from January 21, 2025, by renumbering key paragraphs related to the Diamond Imprest Authorisation (DIA) in the Handbook of Procedures (HBP) 2023. The changes aim to streamline the guidelines for diamond importers and exporters under the Foreign Trade Policy (FTP) 2023.
Overview of the Diamond Imprest Authorisation Scheme
The DIA scheme allows eligible exporters to import diamonds in advance against future export obligations, promoting the gem and jewelry sector. This amendment does not introduce new policies but reorganizes the existing provisions for clarity and better implementation.
Filing of Application for Diamond Imprest Authorisation (Para 4.95)
Applicants must follow the policy outlined in FTP 2023 and submit their applications online using ANF 4J to the relevant Regional Authority as listed in Appendix 4A.
Conditions of Imports and Exports (Para 4.96)
The notice details several conditions to ensure compliance:
- Imports and exports are restricted to Mumbai Airport only.
- Imports are subject to a pre-import condition.
- Export obligations must be met through physical exports of natural cut and polished diamonds, each weighing no more than ¼ carat (25 cents). No one-to-one correlation between imports and exports is required.
- A minimum value addition of 10% must be achieved in freely convertible currency. Para 2.52(d) of FTP 2023 does not apply.
- Deemed exports are not permitted.
- Before customs clearance, a bond equal to the export obligation and a performance bank guarantee equivalent to the duty foregone must be executed with customs authorities.
- Only exports made after the import date count toward fulfilling obligations. Shipping bills must include the relevant scheme code and DIA number for correlation.
General Provisions (Para 4.97)
Key general rules include:
- DIA validity for imports is 12 months from issuance.
- Export obligation fulfillment period is 18 months from issuance.
- Only one authorisation per IEC per financial year.
- No ARO, invalidation letters, or Certificate of Supply (CoS) allowed.
- Imported materials can be used in any unit of the holder or by jobbers/supporting manufacturers, with endorsement by the Regional Authority. Co-licensee facility is unavailable.
- Exported goods may be re-imported in the same or similar form, subject to Department of Revenue conditions. The Regional Authority must be informed within one month of re-import.
- No extensions or revalidations for export obligations.
Fulfilment of Export Obligation (Para 4.98)
Holders must file an online application in ANF 4K to the concerned Regional Authority, uploading supporting documents for export obligation fulfillment.
Regularisation of Bonafide Default (Para 4.99)
In cases of genuine default:
- Pay customs duty on unutilized imported material plus interest via ICEGATE.
- Pay 1% of the FOB value shortfall in Indian rupees online through the DGFT website under Head of Account: 1453, Foreign Trade and Export Promotion, Minor Head 102.
Impact of the Public Notice
This amendment solely renumbers the DIA provisions from the earlier notice, ensuring consistency in the HBP 2023. It was signed by Ajay Bhadoo, Director General of Foreign Trade and Ex-officio Additional Secretary.
This update is crucial for stakeholders in India’s diamond trade, emphasizing compliance and efficiency in export-import operations.
Keyword: Diamond Imprest Authorisation
Meta Description: The DGFT has renumbered provisions for the Diamond Imprest Authorisation in Public Notice No. 26/2025-2026, outlining application processes, import/export conditions, and export obligations under FTP 2023.