The Government of India, through the Ministry of Finance‘s Department of Revenue, has issued a notification confirming the duty exemption for “rough diamonds (industrial or non-industrial)” imported into the country between July 1, 2017 and February 1, 2022.
This clarification follows GJEPC‘s repeated attempts to resolve the issue regarding the duty exemption for “Simply Sawn Diamonds” during this period.
Previously, notifications issued in 2017 and 2022 permitted the duty-free import of raw diamonds. However, there remained doubt about a specific category called “Simply Sawn Diamonds” from 2017 and 2022.
This new notification emphasizes that “Simply Sawn Diamonds” were also meant to be exempt from customs tax during this period, as long as the importer secured a Kimberly Process Certification Scheme (KPCS) certificate certifying the diamonds’ provenance.
The letter further notes that the government accepts a “practice” in which these diamonds were not subject to customs duty during the specified time period. This notification confirms the exemption and relieves importers of any future demands for unpaid duties.
This clarification is likely to provide relief to diamond importers, particularly those who have received Show Cause Notices from Customs for imports made during the intermediate period 2017-2022.