No more bonded warehouse for diamonds - transitory arrangements
CBEC clarifies:-
The scheme of ‘Setting of Private/ Public bonded warehouses for import and re-export of cut & polished/ coloured gem stones, rough diamonds' , was in operation vide Board's circular No. 28/98-Cus dated 24.04.1998 and clarification issued vide circular No. 47/99-Cus dated 27.07.1999.
In view of withdrawal of the scheme for setting up private/public bonded warehouse for diamonds and gemstones from Foreign Trade Policy 2009-14, no new private/public bonded warehouse license can be allowed for bonding of diamonds and gemstones for import and export. Further, such a facility can also not be allowed for non-dutiable goods in term of section 57 of the Customs Act, 1962.
As a transitory arrangement for the existing warehouses to surrender the bonding license, a period of three months is granted from the date of issue of this circular. For this three months period, diamonds and gemstones may be deemed as dutiable goods for the purpose of regulatory control and the procedure of ex-bonding of dutiable goods shall be followed. However, bonding of these goods shall not be allowed in the existing warehouses.
Difficulties, if any, in implementation of these instructions, may be brought to the notice of the Directorate General of Export Promotion.
Circular No. ; Dated: November 24, 2009