FTP - Reimport of Diamonds at zero duty
GOVERNMENT has amended the Foreign Trade Policy. An exporter (with annual export turnover of Rs 5 crores for each of the last three years) may export cut & polished diamonds (each of 0.25 carat or more) abroad to any of the authorised agencies/ laboratories with re-import facility at zero duty within 3 months from the date of export. Such facility of export and subsequent re-import at zero duty will be subject to guidelines issued by CBEC, Department of Revenue.
Basic Customs Duty of 2% on import of cut & polished diamonds has been imposed by the Department of Revenue with effect from 16.1.2012 vide Notification No. 01/2012. Such duty will not be applicable on re-import of cut & polished diamonds (each of 0.25 carat or more) sent for certification/ grading abroad to the authorised laboratories. (Earlier also similar provision existed in FTP which was deleted after the Basic Customs Duty on cut and polished diamonds was brought down to zero.)
But can customs duty be exempted by a notification issued by the DGFT; shouldn't there be a Customs Notification?
DGFT Notification No. 100 (RE-2010) /2009-2014, Dated: February 28, 2012