TaxTMI 
TaxTMI 
Import 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 – reg
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....m directed to invite your attention to notification No. 27/2001-Cus, dated 05-03-2001, 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 again....
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....ther salient features of the notification are as discussed below : Imports under Replenishment Licences : 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 ....
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....difications may be made to provide therein the conditions of the notification. As for other categories of importers i.e. those who do not fulfil the above criteria, apart from Bond, a Bank Guarantee may also be 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 f....
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....rma signed by the licensing authority. The licensing authority then compares such original with the proforma retained by it and thereafter redeems the case provided the Bulk Licensee has supplied the rough diamonds upto the value of rough diamonds imported under the Bulk 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 safegu....