TMI BlogImport of rough diamonds and other precious or semi-precious stones under various licensing schemes of the Exim Policy in terms of notification No35/2001-Cus. dated 30.3.2001 Procedures – regX X X X Extracts X X X X X X X X Extracts X X X X ..... 1, which was issued to exempt rough diamonds and other precious or semi precious stones from customs duty when imported under various licensing schemes provided in Chapter 8 of the EXIM Policy. Since then, several references have been received from the Department of Commerce (DOC) and Gem Jewellery Export Council bringing to our notice the difficulties being faced by trade in complying with various provisions of the notification. The difficulties cited are basically with reference to execution of bank guarantee, maintenance of accounts and monitoring of export obligation. It has also been stated that raw pearls, natural/cultured, which are importable against the REP licence in terms of para 8.2/8.38 of Policy read with Appendix 30A and 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The REP Licences are issued after export proceeds have been realised. It is a facility given to exporters to replenish their inputs. The licence does not carry any export obligation. In view of this, it has been decided that there will not be any requirement for the parties importing raw pearls, diamonds and other precious or semi-precious stones against replenishment licences to give any bond/ bank guarantee / legal undertaking to the Customs or for that matter to maintain any accounts. Imports under Diamond Imprest Licences : 4. Diamond Imprest Licences are issued in advance for import of rough diamonds. The licences carry an export obligation. The export obligation against each consignment is required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e taken at 50% of the duty saved. For the purpose of verification export figures of an exporter, a certificate from the regional licencing authority, or a statement of export of cut polished diamonds made during the last financial year duly certified by a Chartered Accountant may be accepted. 6. Further, the exporters importing rough diamonds under Diamond Imprest Licences shall not be required to maintain any accounts specifically for the Customs. The procedure as being followed by DGFT for monitoring discharge of export obligations by the Diamond Imprest Licence holders shall continue to be followed. However, the licence holders will furnish a copy each of the statement/return being furnished to DGFT giving particulars of imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Licence. If the Bulk licensee fails to supply rough diamonds within the prescribed period, he is required to surrender REP Licences of S.No.2.1 to 2.6 of Appendix 30A for a value twice the value of such rough diamonds imported under the Bulk Licence. 8. As rough diamonds are imported duty free which otherwise carry a duty of 5%, it is the responsibility of the Customs to ensure that the goods are properly accounted for. To safeguard the interests of revenue, a condition has been put in the notification that the Bulk Licence holder will be liable to pay duty on such quantity of diamonds as are not accounted for by him. Therefore, before allowing imports under Bulk Licences, a Bond may be taken from the licence holder on the lines ..... X X X X Extracts X X X X X X X X Extracts X X X X
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