The Ministry of Commerce & Industry has amended Para 4.63 of the Foreign Trade Policy 2023, effective immediately. Under the reviewed provision, imports made under Diamond Imprest Authorisation (DIA) continue to be exempt from Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, wherever applicable. The key update now also exempts DIA imports from the Integrated Tax and Compensation Cess as levied under sub-sections (7) and (9) of section 3 of the Customs Tariff Act, 1975. This change clarifies that the full spectrum of statutory duties and cesses will not apply to goods imported under DIA, reducing the overall tax burden for eligible importers in the diamond sector.
The amendment has been issued under the powers of Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992, and paragraph 1.02 of the Foreign Trade Policy 2023, with approval from the Minister of Commerce & Industry. The practical effect is broader duty relief to support competitiveness in the import and processing of rough diamonds.