The Government of India, through the Ministry of Finance’s Department of Revenue, has issued a notification clarifying the duty exemption for “rough diamonds (industrial or non-industrial)” imported into the country between 1st July 2017, and 1st February 2022.
This clarification comes in response to persistent efforts by GJEPC to address the ambiguity surrounding the duty exemption for “Simply Sawn Diamonds” during this period.
Previously, notifications issued in 2017 and 2022 allowed duty-free import of rough diamonds. However, there was ambiguity regarding a specific category “Simply Sawn Diamonds” during the period between 2017 and 2022.
This new notification clarifies that “Simply Sawn Diamonds” were also intended to be exempt from customs duty during this period, provided the importer obtained a Kimberly Process Certification Scheme (KPCS) certificate verifying the diamonds’ origin.
The notification also states that the government acknowledges a “practice” existed where these diamonds were not charged Customs duty during the mentioned period. This notification formally clarifies the exemption and relieves importers from any potential future claims for unpaid duties.
This clarification is expected to bring relief to diamond importers, especially those who have been served with Show Cause Notices by Customs for imports done during the interim period 2017-2022.