The Department of Commerce, Government of India has introduced the Diamond Imprest Authorisation (DIA) Scheme, aiming to enhance India�s global competitiveness in the diamond sector, according to a statement from the Ministry of Commerce & Industry. Announced on 21st January 2025, the scheme will come into effect on 1st April 2025, offering duty-free imports of Natural Cut and Polished Diamonds under specific conditions to support exporters and sustain domestic industry growth.

Piyush Goyal, Minister of Commerce & Industry, had first announced the government�s landmark decision to reintroduce the Diamond Imprest Licence (DIL) at IIJS Premiere 2024 in Mumbai on 10th August 2024.

Key Features of the Scheme:

This scheme allows the duty-free import of Natural Cut and Polished Diamonds, of less than � carat (25 cents), including semi-processed, broken, half cut, etc.

This scheme mandates export obligation with a value addition of 10%.

All diamond exporters holding Two Star Export House status and above and having US $15 Million exports in each of the past 3 fiscal years, are eligible for availing the benefit under this scheme.

Exporters must have also filed all GST and IT Returns for those years.

The DIL will be for a value of 5% of the average of past 3 years export.

Maximum value of DIL for an exporter in one year will be USD 15 million.

Validity of DIL will be 1 year for import and 18 months for export.

Diamonds to be imported under Actual User Condition.

One-to-one co-relation of diamonds imported and exported is not required.

Export will be against payment in Free Foreign Exchange.

Import and Export will be from Mumbai Airport only.

Application for DIL has to be filed online using ANF-4J Form to the concerned Regional Authority.

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 manufactures 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 diamond industry.

Vipul Shah, Chairman, GJEPC, said, �GJEPC extends its heartfelt gratitude to the Department of Commerce, Government of India, particularly the Ministry of Commerce & Industry, for this timely initiative, which will bolster MSME exporters, safeguard employment, and secure India�s position as a global leader in diamond processing. By enabling value addition and enhancing competitiveness, the scheme will rejuvenate our industry and pave the way for sustained growth and global excellence.�

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 assorters 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 also expected to create employment opportunities for skilled craftsmen in diamond industry and is also expected to increase the export of cut and polished diamond from India.

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

Courtesy: GJEPC