Import of diamonds for certification and grading and re-export - procedure
A new scheme 2 has been introduced in the Foreign Trade Policy 2009-2014 (FTP) for import of diamonds for certification and grading and re-export thereof. Procedure has also been specified under paragraph 4A.14 of Handbook of Procedure Volume I (HBP). The salient feature of this scheme and procedure in this regard are.
(i) This scheme is presently allowed to the authorized offices/ agencies in India of Gemological Institute of America (GIA) in India only;
(ii) GIA shall furnish a general bond to the satisfaction of the Asstt./Dy Commissioner of Customs at the port of import, undertaking to properly account for the diamonds, to follow the specified procedure and to re-export diamonds within the prescribed period;
(iii) The import shall be allowed under bill of entry having the detailed description of the diamonds, including inter alia, the dimensions, weight, colour, caratage, specification, approximate value etc of each piece of diamonds;
(iv) The bill of entry should carry the endorsement “only for certification and grading”;
(v) GIA, while taking the diamonds in their unit, shall allot a unique 'control number' for identification purposes and maintain a separate account for such diamonds;
(vi) After the grading/certification, the diamonds shall be re-exported under a shipping bill containing the detailed description as was mentioned at the time of import;
(vii) Cross reference of B/E shall be endorsed in the shipping bill;
(viii) The onus of certification shall solely rest with the GIA, i.e. the diamonds being re-exported are the same as those imported. GIA shall submit a certificate to this effect, along with the S/B, at the time of re-export;
(ix) GIA shall obtain GR waiver in respect of import and re-export as per the procedure laid down by RBI and realize the foreign exchange for the service charges in terms of RBI guidelines;
(x) The premises of GIA can be visited by Custom officers for surprise audit or checks. The Commissioner should devise a system of random audit at least twice a year;
(xi) The diamonds imported for certification/grading are to be re-exported within a period of 3 months from the date of import;
(xii) The importer shall submit a quarterly statement by 25th of the month succeeding quarter. The statement should reflect the B/E No. & date, details of diamonds and details of re-exports etc; and
(xiii) Re-export shall be allowed only from the port through which import took place.
The DGEP wants wide publicity to be given to these instructions and difficulties, if any, in implementation of these instructions, to be brought to the notice of the Directorate General of Export Promotion.
CBEC Circular No. 30/2009-Cus: Dated: October 22, 2009